The shares of the leading power generation company jumped 1.2 percent after the company entered into a strategic partnership for renewable energy integration with Noida International Airport (NIA).
With a market capitalization of Rs 1.04 lakh crore, the shares of Tata Power Company Ltd closed at Rs 445.40 per share, decreased around 0.87 percent as compared to the previous closing price of Rs 449.30 apiece.
Reason for Rise:-
According to the company filing, Tata Power Company Ltd entered into a strategic partnership for renewable energy integration with Noida International Airport (NIA). Under this arrangement, TPTCL will supply 10.8 MW of wind power for NIA, with secured assets from Tata Power Renewable Energy Limited (TPREL).
Furthermore, with a total investment of ₹550 crore (~$66 million) in solar and wind power supply, as well as the development of essential dry utilities and smart energy infrastructure, this agreement signifies Tata Power’s 25-year commitment to supplying NIA with clean energy.
Moreover, TPREL will also develop, operate, and maintain a 13 MW onsite solar power capacity to contribute to the airport’s overall energy needs. Together, TPREL’s wind and solar installations will supply the airport’s sustainable power needs, underscoring Tata Power’s dedication to building sustainable airport infrastructure.
Meanwhile, the first phase of Noida International Airport, which has one runway and one terminal, would be capable of handling 12 million passengers per year. After completing all four construction phases, the airport will be able to accommodate 70 million people per year.
Financial performance:-
Examining the company’s financial condition, revenue dipped up by 0.2 percent from Rs 15,738 crore in Q1FY24 to Rs 15,698 crore in Q1FY25, during the same time frame net profit zoomed significantly by 7 percent from Rs 1,017 crore to Rs 1,093 crore.
Manufacturing and Production Capacity:-
The company’s 4.3 GW solar cell and module manufacturing plant is now operational, with the module facility at full capacity. The first 2 GW of cell production is stabilizing, set to be fully operational by late November, while a second 2 GW line starts in December.
Recent Projects:-
The company is advancing utility-scale and rooftop solar projects, targeting 1 million rooftop installations in Odisha, Uttar Pradesh, and Rajasthan by Q4. Transmission and distribution efforts include four ongoing projects, with two to be completed by FY25, marking strong growth in infrastructure.
In pumped hydro, a 1,000 MW project is set to launch in January 2025, alongside progress on a 600 MW project in Bhutan. Additionally, a 1,800 MW pumped hydro project at Shirawta is planned to commence by mid-next year, expanding renewable capabilities.
Management outlook:-
Management is optimistic about future growth, supported by solid fundamentals. Plans include scaling solar capacity to achieve 2-2.5 GW annually, with major project completions expected in Q4. Focus remains on a strong debt-equity ratio, leveraging financial stability for upcoming projects.
Company profile:-
Tata Power Company Limited is an India-based integrated power company. The principal business of the Company is the generation, transmission, and distribution of electricity. The Company’s segments include Generation, Renewables, Transmission and Distribution, and Others.
Written by:- Abhishek Singh
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