RattanIndia Power Limited

Utilities — Utilities - Independent Power Producers · NSE

₹6.55+₹0.04 (+0.61%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

RattanIndia Power Limited, together with its subsidiary, Poena Power Development Limited, engages in power generation, distribution, trading and transmission, and other ancillary and incidental activities in India.

IndustryUtilities - Independent Power Producers

SectorUtilities

Employees545

Annual revenue₹2,991 Cr

How does it make money?

Turns over ₹2,991 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 545 employees supports ₹5.49 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.49 Cr

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 6.1% 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 -7% while net margin moved -103% 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-7%

Margin effect-103%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.5% a year
✗ Profit fell 76.4% in the latest year

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

42/ 100

Expensive

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

31.2x

2Y Median

20.8x

28 monthly readings · mean 20.2x · range 0.5x–75.0x

Sector Median

20.6x

median of 4 sector peers

⚠️Current valuation is approximately 50% above its 2y median of 20.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 52% above the peer median of 20.6x.

vs. its own history

Expensive

20.8x median over 28 months · +50%

vs. sector peers

Expensive

20.6x median of 4 peers · +52%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 80% over 3 years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.4 points, from 32.2% to 24.9%.
🟡Inventory building faster than salesFinancial
Inventory up 49% against revenue up -7% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 80% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 32.2% to 24.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 5.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 50% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 23%✓ 24.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹294 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 6.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

3 good · 4 neutral · 4 weak

Market Cap

₹3,517 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.2x

Fair

Fairly valued against the generic band

P/B Ratio

0.76x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.21

Profitable

Profitable on a per-share basis

ROE

1.1%

Weak

Weak capital efficiency

ROCE

6.1%

Weak

Low return on total capital employed

Debt/Equity

0.80x

Moderate

Moderate leverage

Revenue Growth (YoY)

-2.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-76.4%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹294 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.0%

Average

Average margins

Net Margin

3.8%

Average

Average bottom-line conversion

Current Ratio

2.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.8 / 7.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,231 Cr	₹3,364 Cr	₹3,284 Cr	₹2,991 Cr	-2.5%
EBITDA	₹1,042 Cr	₹963 Cr	₹916 Cr	₹744 Cr	-10.6%
EBITDA Margin	32.2%	28.6%	27.9%	24.9%	—
PAT (Net Profit)	-₹1,870 Cr	₹8,897 Cr	₹222 Cr	₹52 Cr	—
EPS	₹-3.48	₹16.57	₹0.41	₹0.1	—
ROE	—	203.9%	4.8%	1.1%	—
ROCE	—	134.8%	7.8%	6.1%	—
Total Debt	₹21,021 Cr	₹4,438 Cr	₹4,189 Cr	₹4,227 Cr	-41.4%
Free Cash Flow	₹985 Cr	₹1,207 Cr	₹293 Cr	₹294 Cr	-33.1%

🔴 Revenue has shrunk at 2.5% a year over 3 years.

🔴 EBITDA has shrunk at 10.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 32.2% to 24.9% over 3 years (-7.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1,870 Cr to ₹52 Cr.

🟢 EPS has turned positive, from ₹-3.48 to ₹0.1.

🔴 ROE has fallen from 203.9% to 1.1% over 3 years (-202.7 pts).

🔴 ROCE has fallen from 134.8% to 6.1% over 3 years (-128.7 pts).

🟢 Total Debt has shrunk at 41.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 33.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,613 Cr

Total Liabilities

₹4,975 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹372 Cr

Capex

-₹78 Cr

Shareholding (proxy)

Institutional Holding

3.1%

Insider Holding

50.2%

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

2 mixed4 general

RattanIndia Power Promoters' 2,097,598,310 Shares Released From NDU Linked To ₹550 Crore Kotak Loan

Sahi, 27 Jul

RattanIndia Power Limited (RTNPOWER) Share Price NSE

TechGraph, 07 Oct

RattanIndia Power Share Price Target 2026: Rs 10.9 Analyst Forecast

Univest, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

RattanIndia Power Reports Q1 Net Profit of Rs 44 Cr

HDFC Sky, 24 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

RattanIndia Power sets Sept 24 date for 19th annual general meeting

scanx.trade, 26 Aug

RattanIndia Power Ltd (NSE: RTNPOWER) Business Overview and Financial Snapshot

Kalkine India, 10 Sept

Watch Items

Revenue growth is negative (-2.8%) on the latest reported period — check if this is one-off or a trend.
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.
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

StrongFinancial Health

MiddlingBusiness Quality · Valuation

WeakGrowth · Profitability · Risk

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. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑