Profitability Performance of Select Public Sector Power Companies in India: An Empirical Study

Abstract: This paper evaluates the profitability of five major central public sector undertakings in India’s power industry i.e. NTPC, Powergrid, NHPC, SJVN, and NLC covering the period 2003–04 to 2017–18. Profitability indicators such as Operating Profit Ratio (OPR), Net Profit Ratio (NPR), and Return on Net Worth (RONW) were employed to examine financial performance, using data mainly from the Capitaline database. The results highlight that SJVN consistently achieved the strongest average profitability, while Powergrid displayed the most stable outcomes. NTPC experienced downward movements in some indicators. In overall ranking, SJVN emerged as the leader, followed by Powergrid and NTPC (with similar performance), NLC, and NHPC. These findings provide useful insights for investors, managers, and policymakers interested in the financial health of the power sector. Keywords: Profitability Analysis, Indian Power Sector, Financial Ratios, Public Sector Undertakings, Company Performance