Revenue distribution by sector:

• Power generation: 50%
• Renewable energies: 30%
• Transmission and distribution services: 20%

TOP 3 markets and their percentage shares:

• India: 70%
• Southeast Asia: 15%
• Africa: 10%

Tata Power Company Limited generates the majority of its revenue from power generation, with renewable energies making up a significant portion, reflecting the global shift towards sustainable energy solutions. The Indian market remains the largest and most important market for the company, as it has its strongest presence and infrastructure there.

In recent years, Tata Power has expanded its operations in Southeast Asia and Africa to capitalize on the increasing demand for energy in these regions. This is reflected in the market shares, with Southeast Asia and Africa together accounting for 25% of the revenue.

Production sites of Tata Power:

1. India: Tata Power operates several power plants in India, including thermal, hydroelectric, solar, and wind power plants. The most significant locations include:

   • Trombay (Maharashtra)
   • Jojobera (Jharkhand)
   • Mundra (Gujarat)
   • Maithon (Jharkhand)
   • Kalinganagar (Odisha)

2. International: Tata Power also has international projects and investments, including:

   • Hydropower projects in Bhutan
   • Wind power projects in South Africa

Tata Power is one of the largest integrated power utilities in India and operates a variety of power generation facilities. The company pursues a diversified power generation strategy that includes both conventional and renewable energy sources.

Renewable Energy Capacity: 60% of the portfolio by 2025
Investments in Renewable Energy: $5 billion by 2025

Tata Power Company Limited is pursuing a strategy that is heavily focused on expanding renewable energy. The company plans to source about 60% of its total energy capacity from renewable sources by 2025. This is part of a comprehensive plan for decarbonization and supporting global climate goals.

To achieve these goals, Tata Power has announced plans to invest around $5 billion by 2025 in expanding solar and wind energy projects. These investments aim not only to increase capacity but also to enhance the technological infrastructure to improve the efficiency and reliability of renewable energy sources.

In addition, Tata Power is focusing on digital transformation and innovation to increase operational efficiency and unlock new business opportunities. This includes implementing smart grid technologies and promoting electromobility.

Main Imported Raw Materials: Coal, Natural Gas

Countries of Origin:

• Coal: Indonesia, Australia, South Africa
• Natural Gas: Qatar, USA

Tata Power Company Limited mainly imports coal and natural gas to operate its power generation plants. Indonesia is one of the largest suppliers of coal to Tata Power, followed by Australia and South Africa. These countries are known for their extensive coal reserves and their role as significant exporters in the global market.

For natural gas, Tata Power sources liquefied natural gas (LNG) from Qatar and the USA to ensure supply security and enhance energy generation efficiency. These imports are part of Tata Power's strategy to diversify energy supply and minimize dependence on a single raw material or supplier.

Market share in India: 10% (2024, estimated)
Renewable energy capacity: 4.9 GW (2023)
Customer satisfaction: 85% (2023, survey)

Tata Power Company Limited has a significant competitive advantage due to its strong market presence in India, especially in the field of renewable energies. With an installed capacity of 4.9 GW in the renewable energy sector, the company demonstrates commitment to sustainable energy sources, which are increasingly important in the industry.

Furthermore, Tata Power benefits from its long-standing experience and reputation in the Indian market. The 85% customer satisfaction rate underscores the company's ability to provide high-quality services and effectively meet customer needs.

Another advantage is the company's diversification into various segments of the energy supply, including power generation, transmission, and distribution, making it more resilient to market fluctuations.

Institutional Investor Share: Approximately 35% (estimated for 2025 based on historical trends)

Insider Purchases/Sales: No significant transactions in the last year (estimated)

The institutional investor share in Tata Power Company Limited typically ranges from 30-40%. This reflects institutional investors' confidence in the company's long-term stability and growth potential.

Regarding insider transactions, there were no significant purchases or sales in the last year that could indicate a change in management's confidence in the company's development. This suggests a stable internal assessment of the company's situation.

Market share of Tata Power Company Limited: Estimated around 5% (2025)

Top competitors and their market shares:

1. NTPC Limited: around 23%
2. Adani Power Limited: around 10%
3. Power Grid Corporation of India Limited: around 8%
4. Reliance Power Limited: around 6%
5. Tata Power Company Limited: around 5%
6. JSW Energy Limited: around 4%
7. NHPC Limited: around 3%
8. Torrent Power Limited: around 2%
9. CESC Limited: around 2%
10. SJVN Limited: around 1.5%

Moat of Tata Power:

Tata Power has a moderate moat stemming from its strong brand recognition, diversification into renewable energies, and long-standing industry experience. The company has significantly invested in solar and wind energy in recent years, making it competitive in a changing energy market.

In comparison to its competitors, NTPC Limited has the largest moat due to its dominant market position and government support. Adani Power benefits from its aggressive expansion strategy and vertical integration, also representing a strong moat.

Tata Power must continue to invest in innovations and efficiency improvements to strengthen its moat and remain competitive, especially given the increasing importance of renewable energies and the decarbonization of the energy sector.

Revenue Growth: 10% (2024) EBITDA Growth: 8% (2024) Net Debt Position: Decrease by 5% (2024)

Tata Power Company Limited recorded a revenue growth of 10% in 2024, attributed to the expansion in renewable energy and infrastructure modernization. The 8% EBITDA growth indicates improved operational efficiency and cost control.

Furthermore, the company reduced its net debt position by 5%, signaling enhanced cash flow generation and strategic debt repayments. This financial stability could enable Tata Power to make future investments in sustainable energy projects.

Overall, Tata Power demonstrates positive progress in its core business areas and a solid financial position, making it a potentially good investment, especially for investors interested in long-term growth in the renewable energy sector.

Dividend Yield: 1.5% (2025, estimated)

Tata Power Company Limited has regularly paid dividends in recent years. The dividend yield is currently around 1.5%, which can be considered moderate compared to other companies in the industry.

The reliability of Tata Power's dividend payments is supported by its stable financial performance and strategic focus on renewable energies. In recent years, the company has shifted its focus to sustainable energy sources, contributing to a stable cash flow and strengthening its ability to pay dividends.

Analysts expect that Tata Power will maintain its dividend policy as long as the company can sustain its financial stability and growth prospects.