The power sector plays a critical role in India’s growth, supporting both economic development and everyday life through a reliable supply of electricity. Power demand is rising in India due to increasing population and urbanisation, and has reached 148 billion units in March 2025, with a yearly increase of 7%.
This demand could make power a very attractive sector. Also, the government’s push for renewable energy and initiatives like rooftop solar, must-run policies, and youth engagement are making this sector grow.
There are various companies in this sector, out of which Adani Green and Tata Power are two major players. In this blog, we’ll compare Adani Green Energy vs Tata Power to provide a holistic study of both companies.
Power Sector Overview
India is the third-largest power producer and consumer of electricity across the globe as of April 2024. The installed power capacity stands at 466gigawatts (GW) as of January 2025.
India has set healthy targets for renewable energy, aiming to reach 500 GW by 2030. The total renewable capacity reached 209 GW as of December 2024, a 15.8% year-on-year increase.
India recorded its fastest power generation growth over three decades, with output rising by 8.87% to reach 1,624.15 billion kilowatt-hours in FY23. By September of FY25, electricity production had already reached 951.10 billion units. Between FY10 and FY24, the country’s electricity output grew at a compound annual growth rate of 5.04%.
Looking ahead, India plans to allocate ₹42 lakh crore over the coming ten years to revamp its power sector. This investment will focus on enhancing renewable energy capacity, expanding battery storage solutions, and upgrading grid and transmission networks to support a modern and resilient energy system.
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Adani Green Energy Overview
Adani Green Energy Ltd (AGEL) deals in the business of renewable energy, with its main activity being the production of clean power. The company operates under the Adani Group and engages in related activities that supplement and complement its core activity of producing renewable electricity.
The firm has a total renewable energy portfolio of about 33 GW as of March 2025, which comprises operational and pipeline assets. While about 30 GW is secured under long-term Power Purchase Agreements (PPAs), around 3 GW operates in the merchant market.
The firm is constructing the world’s largest renewable energy project at Gujarat’s Khavda. The firm has commissioned more than 4 GW of capacity at the site in just two years. AGEL plans to scale it up to 30 GW by 2029, with the management confirming that the project was going according to schedule and on course to achieve the target.
Tata Power Overview
Tata Power Company Ltd is a premier integrated power utility that undertakes power generation, transmission, and distribution of electricity in India. The organisation has operations in the entire value chain of power and plays a major role in fulfilling the increasing energy requirement of the country.
Tata Power’s FY26 capex plan is ₹25,000 crore, of which around 60% is to be spent on renewable energy initiatives, 30% on transmission and distribution (T&D), and the rest of other businesses.
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Adani Green vs Tata Power: A financial snapshot
Both companies have strong financial performance as well as healthy metrics. Let’s take a closer look at the FY25 performance of Adani Green vs Tata Power to understand how each company compares across key financial metrics:
| Metrics (In ₹ Crore) | Adani Green Energy | Tata Power |
| Revenue | 11,212 | 65,478 |
| EBITDA | 8,877 | 12,954 |
| EBITDA Margin | 79.2% | 19.8% |
| Net Profit | 2,001 | 4,775 |
| Net Profit Margin | 17.8% | 7.3% |
| EPS (In ₹) | 9.12 | 12.43 |
| Dividend | 0% | 18% |
| Installed Capacity | 15.2 GW | 25.7 GW |
| Order Pipeline | 6.25 GW | 5.50 GW |
| PE Ratio | 98.1x | 32.5x |
| Debt to Equity Ratio | 6.59 | 1.75 |
| ROE(%) | 15.1% | 11.3% |
1. Revenue
Revenue refers to the overall amount of money a company generates from its core business operations. Adani Green Energy collected ₹11,212 crore, most of which resulted from producing and selling renewable power. In contrast, Tata Power generated higher revenue reaching ₹65,478 crore. This is due to Tata Power conducting business through a larger number of activities, such as power generation, transmission, and distribution.
2. EBITDA
The EBITDA measures how much profit a company makes from its operations before accounting for interest, tax, depreciation, and amortisation. And margins are its percentage in comparison to sales. Higher EBITDA margins show better efficiency.
Adani Green has an EBITDA margin of 79.2% at ₹8,877 crores, and Tata Power has an EBITDA margin of 19.8% at ₹12,954 crores. Under this metric, Adani Green Energy reports higher margins, while Tata Power shows lower margins due to its involvement across the entire value chain—generation, transmission, and distribution—which increases operational costs. In contrast, Adani Green focuses solely on generation, resulting in a leaner and more cost-efficient operation.
3. Net Profit
Net profit is the final profit received by the company after reducing all costs. Net profit margin is its comparison with sales. Net profit for Adani Green is ₹2,001 crore, and for Tata Power, it is ₹4,775 crore. But, the net profit margin for Adani Green is 17.8%, while Tata Power’s margin is 7.3%. This shows that Adani Green has higher profitability in terms of margin, while Tata Power earns higher absolute profit.
4. EPS
Earnings per share (EPS) reflects the portion of a company’s profit allocated to each outstanding share. Adani Green reported an EPS of ₹9.12, while Tata Power’s EPS was higher at ₹12.43. This difference is primarily due to Tata Power’s larger scale and higher overall profitability.
5. Dividend
Dividends represent a portion of a company’s profits distributed to shareholders. Adani Green did not declare any dividends, while Tata Power announced an 18% dividend.
6. Installed Capacity
This is the cumulative capacity of power a company can produce. Adani Green has an installed capacity of 15.2 GW, all from renewable sources such as solar and wind. Tata Power has a larger capacity of 25.7 GW, both from renewable and traditional power sources.
7. Order Pipeline
The order pipeline refers to upcoming projects that are yet to be executed and are expected to drive future revenue. While both companies have strong installed capacities, Adani Green holds a slight edge in future projects, with an order pipeline of 6.25 GW compared to Tata Power’s 5.5 GW. These projects are expected to be commissioned over the next 6 to 24 months.
8. P/E Ratio
P/E ratio (Price-to-Earnings ratio) is a valuation metric that indicates how much investors are willing to pay for each rupee of a company’s earnings. In the case of Adani Green, the P/E ratio is 98.1x, while Tata Power has a P/E ratio of 32.5x. However, the industry average P/E is 27.2x, which suggests that Adani Green is significantly overvalued compared to its peers.
9. Debt-to-Equity Ratio
The debt-to-equity ratio measures how much debt a company has compared to its equity. A lower debt-to-equity ratio generally indicates healthier and more stable company operations. Adani Green has a debt-to-equity ratio of 6.59, with ₹80,040 crore in debt, ₹1,584 crore in equity, and cash equivalents of ₹3,332 crore. In comparison, Tata Power’s ratio is significantly lower at 1.75. Adani Green may face margin pressures in the future due to its high debt burden and interest repayment obligations.
10. ROE
ROE (Return on Equity) measures a company’s profitability compared to its equity. A higher ROE is generally better, indicating more efficient use of shareholder funds. Adani Green has reported an ROE of 14%, while Tata Power has an ROE of 11.3%. This suggests that Adani Green has delivered better returns on equity compared to Tata Power.
Now, let us have a look at the summary of Adani Green vs Tata Power stock comparison:
| Metric | Adani Green Energy Ltd | Tata Power Ltd |
| Revenue | 👎 | 👍 |
| EBITDA Margin | 👍 | 👎 |
| Net Profit Margin | 👍 | 👎 |
| EPS | 👎 | 👍 |
| Dividend | 👎 | 👍 |
| Installed Capacity | 👎 | 👍 |
| Order Pipeline | 👍 | 👎 |
| PE Ratio | 👎 | 👍 |
| Debt to Equity Ratio | 👎 | 👍 |
| ROE | 👍 | 👎 |
| Stock Returns | 👎 | 👍 |
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Stock Price Performance
Adani Green Energy Ltd is currently trading at a price of ₹1,022 as of 19 May 2025. Further, the stock has made a 52-week high and low of ₹2,174 and ₹758, respectively.
Source: Adani Green Energy Stockgro
Tata Power Ltd is currently trading at a price of ₹411 as of 19 May 2025. Further, the stock has made a 52-week high and low of ₹495 and ₹326, respectively.
Source: Tata Power Stockgro
| Returns (As of 19 May 2025) | Adani Green Energy Ltd | Tata Power Ltd |
| 1 Month | 11.3% | 9.75% |
| 6 Months | -30.47% | 0.96% |
| 1 Year | -44.74% | -6.35% |
| 5 Years | 341% | 1,205% |
As seen in the data above, Tata Power has significantly outperformed Adani Green Energy in terms of long-term returns. Both stocks have seen notable movements over time.
In the short term, Adani Green posted a better 1-month return of 11.30%, marginally ahead of Tata Power’s 9.75%. However, over the 6 months, Adani Green faced steep corrections, falling 30.47%, whereas Tata Power managed to stay resilient with a modest gain of 0.96%.
The gap becomes more pronounced over the 1-year timeframe, where Adani Green registered a sharp decline of 44.74%, contrasting with Tata Power’s more moderate correction of 6.35%.
Over the past five years, Tata Power has delivered a return of 1205%, compared to Adani Green’s 341% over the same period.
Bottomline
Both companies continue to perform well and are positioned as strong competitors within the sector. Adani Green leads in EBITDA and net profit margins, and has a stronger order pipeline. On the other hand, Tata Power leads in revenue, EPS, dividends, capacity, lower P/E ratio, lower debt, and stock returns.
Both companies are operating effectively and have effective future plans. With continued government focus on the power sector and the potential for increased project allocations, both firms are likely to benefit from upcoming opportunities.
However, investors are advised to conduct thorough research and consider their individual risk appetite before making any investment decisions.
