POWERGRID vs TATAPOWER
Side-by-side comparison of Power Grid Corporation of India Ltd. and Tata Power Co. Ltd.. Descriptive only — not investment advice.
Power Grid Corporation of India Ltd.
Power
Quality Score: 55/100
Tata Power Co. Ltd.
Power
Quality Score: 28/100
At a glance
| Metric | POWERGRID | TATAPOWER |
|---|---|---|
| Quality Score | 55/100 | 28/100 |
| P/E (trailing) | 14.5 | 35.3 |
| Forward P/E | 14.6 | 23.7 |
| ROE | +16.5% | +11.3% |
| Profit margin | +34.1% | +6.0% |
| Debt-to-equity | 150.99 | 167.81 |
| Dividend yield | +4.19% | +0.60% |
| 1Y price return | +4.6% | +2.5% |
| From 52w high | -10.1% | -11.1% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.16 | 2.50 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Power Grid Corporation of India (POWERGRID) is the national electricity transmission monopoly, trading at ₹292.25 with a trailing PE of 14.55 and a dividend yield of 4.19%. The company posted 5-year earnings growth of +9.6% and has maintained positive free cash flow in 4 of the tracked years, though 5-year revenue growth is negative at −5% and debt-to-equity stands at 150.99 with a rising trend. The stock is 3.3% below its 50-day moving average but remains above its 200-day moving average of ₹283.52.
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
- ✓ROE of 16.49% over a regulated-utility peer group where NTPC sits at 13.69%, ADANIGREEN at 7.58%, and ADANIENSOL at 9.66% — POWERGRID ranks 2nd of 6 peers on return on equity.
- ✓5-year earnings growth of +9.6% alongside positive FCF in 4 of tracked years suggests the regulated tariff model is converting asset additions to earnings without sustained cash burn.
- ✓Dividend yield of 4.19% backed by the board approving a ₹5,000 crore fundraise, indicating capital access; recent BESS (battery energy storage) tenders of 100 MW/400 MWh and 400 MW/1.6 GWh signal active capital deployment in grid modernisation.
- ✓PE of 14.55 ranks 2nd lowest in the 6-peer power sector cohort versus ADANIGREEN at 156.55, ADANIENSOL at 81.48, ADANIPOWER at 34.95, and TATAPOWER at 34.42 — POWERGRID trades at a meaningful PE discount to most sector peers.
- ✓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 150.99 with a rising trend is the defining balance-sheet characteristic; while regulated utilities structurally carry higher leverage, ongoing borrowing for capital expenditure compounds refinancing exposure should interest rates shift.
- ✗5-year revenue growth of −5% alongside positive earnings growth indicates top-line contraction — cost efficiencies have sustained profits, but there is no organic revenue expansion visible in the 5-year window.
- ✗Quality score of 37 out of 100 and fundamental consistency score of 43 place POWERGRID below the mid-point of its sector on composite capital-efficiency measures; ROE exceeded 15% in only 4 of the tracked years.
- ✗1-year price appreciation of +4.59% alongside a 10.1% drawdown from the 52-week high reflects price underperformance relative to earnings growth of +9.6%; the stock has been 3.3% below its 50-DMA in the near term.
- ✗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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