ADANIPOWER vs TATAPOWER
Side-by-side comparison of Adani Power Ltd. and Tata Power Co. Ltd.. Descriptive only — not investment advice.
Adani Power Ltd.
Power
Quality Score: 57/100
Tata Power Co. Ltd.
Power
Quality Score: 28/100
At a glance
| Metric | ADANIPOWER | TATAPOWER |
|---|---|---|
| Quality Score | 57/100 | 28/100 |
| P/E (trailing) | 35.1 | 35.3 |
| Forward P/E | 27.5 | 23.7 |
| ROE | +20.9% | +11.3% |
| Profit margin | +23.7% | +6.0% |
| Debt-to-equity | 82.33 | 167.81 |
| Dividend yield | — | +0.60% |
| 1Y price return | +110.9% | +2.5% |
| From 52w high | -8.6% | -11.1% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.71 | 2.50 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Adani Power, India's largest private thermal power generator, trades at Rs 232.30 — up 110.9% over the past 12 months and 64.4% over the past 3 months — sitting 8.6% below its 52-week high. At a PE of 35.09 (forward PE 27.53) and ROE of 20.91%, it ranks first among its 6-peer power sector group on both ROE and quality score (41/100), but carries a debt-to-equity ratio of 82.33 with a rising debt trend that stands as its most material structural overhang.
Tata Power (NSE: TATAPOWER) is a diversified power utility trading at ₹413.5, up 2.5% over the past year, with PE of 35.3 and a forward PE of 23.7 — the latter implying market expectation of earnings recovery. The balance sheet carries a debt-to-equity of 167.81 with zero FCF-positive years in the tracked period and a rising debt trend, while 5-year revenue and earnings growth are both negative at -12.8% and -4.6% respectively.
Pros
- ✓Highest ROE among 6 tracked power sector peers at 20.91%, with ROE exceeding 15% in 4 of the past 5 years, indicating sustained returns on equity through the recovery cycle.
- ✓Earnings growth of 88.8% over 5 years — among the strongest in the sector — driven by margin expansion and financial restructuring, reflected in a profit margin of 23.66%.
- ✓Price above both the 50-DMA (Rs 201.26) and 200-DMA (Rs 157.38), with RSI at 58.02 in neutral territory and only 8.6% below the 52-week high.
- ✓PE of 35.09 sits at mid-range relative to sector peers (ADANIGREEN at 150.9x, ADANIENSOL at 80.4x), while forward PE compresses to 27.53x, reflecting earnings growth expectations in consensus.
- ✓Q4 FY26 consolidated net profit reported at ₹6,636 crore with a declared ₹2.50 dividend, providing a concrete recent earnings data point after years of declining 5-year trajectory.
- ✓Stock trades above the 200-DMA (₹390.3) and 50-DMA (₹411.5) with RSI at 45, placing it in neutral momentum territory with 11% drawdown from the 52-week high — not in an extended overbought zone.
- ✓Forward PE of 23.7 versus trailing PE of 35.3 implies analyst consensus projects a meaningful earnings step-up; mean analyst rating of 2.5 across 24 analysts on a 1-5 scale (lower = more constructive).
- ✓Sector tailwinds are present — AI-infrastructure demand and heatwave power consumption have been cited in recent coverage as demand drivers for large utilities including Tata Power.
Cons
- ✗Debt-to-equity of 82.33 is exceptionally elevated for a non-financial power company and the trend is classified as rising; any deterioration in power purchase agreement revenues or merchant tariffs would amplify solvency pressure at this leverage level.
- ✗5-year revenue growth of -0.1% means the earnings recovery has been entirely margin-driven rather than volume or price-led; top-line stagnation over a 5-year horizon constrains the durability of the earnings trajectory.
- ✗FCF positive in only 3 of 5 recorded years and a quality score of 41/100 — ranked first in the peer group but still in the lower half of a 0-100 scale — indicate earnings quality concerns persist despite the profitability recovery.
- ✗Nearest major support level at Rs 144.65 is approximately 37.7% below the current price; a reversion to that level following the 64.4% 3-month rally would represent a material drawdown to the next established structural reference.
- ✗Debt-to-equity of 167.81 with zero FCF-positive years and a rising debt trend is a material balance-sheet risk; servicing this leverage on thin 6% profit margins leaves narrow room for error.
- ✗5-year revenue growth of -12.8% and earnings growth of -4.6% reflect a sustained period of top- and bottom-line contraction; ROE of 11.34% has not cleared 15% in any tracked year and the consistency score is 0 of 100.
- ✗TATAPOWER ranks last (6th of 6) on quality score among Power sector peers, yet its PE of 35.3 exceeds NTPC (21.7) and POWERGRID (14.9) — both of which carry materially higher quality scores.
- ✗The gap between trailing PE (35.3) and forward PE (23.7) requires substantial earnings realisation; if Q4 FY26 momentum does not persist, this compression scenario may not materialise, as the 5-year track record does not yet support it.
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