India Power Corporation Limited

Utilities — Utilities - Regulated Electric · NSE

₹5.97+₹0.06 (+1.02%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of India Power Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

India Power Corporation Limited, together with its subsidiaries, engages in the generation and distribution of electricity in India. The company operates 24.8 MW of wind assets in Gujarat; 2 MW of solar asset in West Bengal; and 12 MW thermal power plants in Asansol, West Bengal.

IndustryUtilities - Regulated Electric

SectorUtilities

Annual revenue₹683 Cr

How does it make money?

Turns over ₹683 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +12% while net margin moved -27% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+12%

Margin effect-27%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.7% — barely ahead of inflation
✗ Profit has declined at 6.8% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

40/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

55/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

74.6x

3Y Median

177.0x

40 monthly readings · mean 184.8x · range 102.9x–302.3x

Sector Median

20.6x

median of 4 sector peers

🟢Current valuation is approximately 58% below its 3y median of 177.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 263% above the peer median of 20.6x.

vs. its own history

Cheap

177.0x median over 40 months · -58%

vs. sector peers

Expensive

20.6x median of 4 peers · +263%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

9.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 55% over 3 years.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.
🟡Margins are compressingFinancial
EBITDA margin is down 3.6 points over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.84 — near-term obligations exceed near-term assets.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 55% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 58% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹53 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 14.1% to 10.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 263% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 3.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 8%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✗ 3.7% CAGR
Latest reported year was 21.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹53 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹581 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

74.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.92x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.08

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

2.8%

Weak

Low return on total capital employed

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

21.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

82.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.84%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹43 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

-1.1%

Weak

Assets generate little profit

Operating Margin

-7.1%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.84

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.6 / 7.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

1.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹612 Cr	₹634 Cr	₹620 Cr	₹683 Cr	+3.7%
EBITDA	₹86 Cr	₹86 Cr	₹145 Cr	₹72 Cr	-6.0%
EBITDA Margin	14.1%	13.6%	23.4%	10.5%	—
PAT (Net Profit)	₹16 Cr	₹17 Cr	₹7 Cr	₹13 Cr	-6.8%
EPS	₹0.1	₹0.11	₹0.04	—	—
ROE	1.6%	1.7%	0.8%	1.4%	—
ROCE	3.8%	3.6%	2.8%	2.8%	—
Total Debt	₹282 Cr	₹213 Cr	₹156 Cr	₹127 Cr	-23.4%
Free Cash Flow	₹58 Cr	₹72 Cr	₹64 Cr	₹53 Cr	-3.2%

🟢 Revenue has grown at 3.7% a year over 3 years.

🔴 EBITDA has shrunk at 6.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.1% to 10.5% over 3 years (-3.6 pts).

🔴 PAT (Net Profit) has shrunk at 6.8% a year over 3 years.

🟡 ROE has held roughly flat at 1.4% over 3 years.

🟡 ROCE has held roughly flat at 2.8% over 3 years.

🟢 Total Debt has shrunk at 23.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 3.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,857 Cr

Total Liabilities

₹967 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹75 Cr

Capex

-₹23 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

0.0%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

12 Sept 2025

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

6 general

33 Best Power Sector Stocks In India October 2026 | Best Energy Stocks To Invest

Samco, 14 Oct

Promoter Group Sells 197,082 Shares in India Power Corporation Amid CIRP

Dalal Street Investment Journal, 26 Jun

India Power Corp website updated under SEBI norms

scanx.trade, 09 Jul

Compare DPSC with

Equitymaster, 17 Oct

Sebi settles case against India Power Corp's Raghav Raj Kanoria for Rs 24.7 lakh

The Economic Times, 05 Aug

Aksara Commercial reduces stake in India Power Corporation

scanx.trade, 11 Jun

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑