The Tata Power Company Limited (TATAPOWER.NS) stock analysis

In our weekly check, The Tata Power Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 4, red flags: 7.

About The Tata Power Company Limited

The Tata Power Company Limited is an Utilities company (Independent Power Producers) based in India, listed on NSE as TATAPOWER.NS.

What our checks show for TATAPOWER.NS

Red flags

• Net debt is 4x a year of EBITDA (debt/equity 2.02). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• The gross margin fell by 6.9 points, to 25.2%: costs are rising faster than prices.
• Free cash flow is negative (-17.6% of revenue): the business spends more cash than it brings in.
• The dividend takes 1822% of profit: little cushion if profit falls.
• The stock has fallen as much as 83% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating cash flow is only 0.72x net profit: part of the reported profit does not arrive as cash.
• Revenue grew only 4.2% a year over the last 3 years.
• The net margin is only 6%: little room if costs rise.
• Return on capital (ROCE) is only 5.9%.

Strengths

• The net margin rose by 1.9 points over 5 years, to 6%.
• Analysts expect earnings per share to grow about 14.3% a year over the next years.
• A large company: market value $11.6 billion.
• Beta 0.33: the stock usually moves less than the market.
• Actively traded: about 4.4 million shares a day.

Next earnings report: 2026-11-11

Similar companies

JSWENERGY.NS · GULF-R.BK · ADANIENSOL.NS · TORNTPOWER.NS · ADANIPOWER.NS · 1816.HK

Questions

What grade does The Tata Power Company Limited (TATAPOWER.NS) have?

In our weekly check, The Tata Power Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 4, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TATAPOWER.NS stock?

This week's biggest flags for The Tata Power Company Limited: High debt, Weak interest cover, Gross margin falling. In total 11 of 25 checks show a warning or a red flag.

What does The Tata Power Company Limited do?

The Tata Power Company Limited is an Utilities company (Independent Power Producers) based in India, listed on NSE as TATAPOWER.NS.

When does The Tata Power Company Limited report earnings next?

The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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