This study analyzes the financial performance of India's three largest private power producers—Tata Power, Adani Power, and Reliance Power—over the five-year period from 2020 to 2024. It focuses on key profitability ratios (Net Profit, Return on Equity) and liquidity ratios (Quick Ratio, Current Ratio) to assess each company's financial health and performance trends. The analysis reveals that Adani Power leads in financial performance, showing strong revenue growth, rising net profits, reduced fuel costs, and increased power demand. Tata Power posted record profits, revenue, and EBITDA in FY 2023–24, though its liquidity ratios (below 1) indicate potential challenges in meeting short-term obligations, pointing to a need for improved asset-liability management. Reliance Power, while historically affected by high financing and operational costs, demonstrated signs of recovery and financial improvement in FY 2023–24. Among the three, Adani Power emerges as the most financially stable, with consistent growth and strong liquidity. Tata Power maintains moderate profitability but needs to strengthen liquidity, and Reliance Power, despite past losses, shows potential for turnaround with strategic financial restructuring. This study offers valuable insights for investors, policymakers, and stakeholders, aiming to evaluate the financial viability of major private power producers in India based on their profitability and liquidity performance.