This Tata Group stock engaged in the business of generation, transmission, and distribution of electricity consisting of thermal and renewable energy is in focus after receiving an order worth ~Rs. 632 crore from SECI for DCR Solar Modules.
Price Movement
In Friday’s trading session, Tata Power Company Ltd‘s share price touched a day’s low of Rs. 336.55, which was down by 1.96 percent. The share price reiterated from the day’s low and was trading at Rs. 340.55, which is 0.80 percent lower than the previous closing price of Rs. 343.30.
In the past year, the stock has delivered a negative return of around 7 percent and has underperformed the Nifty Index.
What happened
The company’s stock was in focus after Tata Power Renewable Energy Limited (TPREL), its wholly owned subsidiary TP Solar Limited, secured a contract from the Solar Energy Corporation of India Limited (SECI) for the supply of 292.5 MWp DCR (Domestic Content Requirement) Solar Modules. This order was awarded under the CPSU scheme Tranche – III.
The value of this contract is valued at ~Rs. 632 crore and it will be built in the facility situated in Ramagiri, Andhra Pradesh. Out of 400 MWp tender from SECI, TP Solar won the 292.5 MWp bid through an e-reverse auction.
From this contract, TP Solar will manufacture in India, aligning with Atmanirbhar Bharat Vision. The delivery period for the project is set from October 2025 to January 2026, a duration of four months.
Official Commentary
Commenting on the Contract, the Director of SECI, Sivakumar V Vepakomma said, “The CPSU Scheme is a crucial initiative to enhance domestic solar manufacturing and strengthen India’s energy security. By awarding this contract to TP Solar, we are taking a significant step towards fostering self-reliance in the solar sector and ensuring that large-scale renewable projects are powered by high-quality, locally manufactured modules.
Tata Power Renewables’ expertise and commitment to excellence align well with our vision of accelerating India’s clean energy transition while promoting indigenous manufacturing. This project will contribute to the country’s renewable energy targets, create economic opportunities, and support the long-term sustainability of the solar industry”.
Financials Overview
Their Q3FY25 results show revenue from operations of Rs. 15,391 crore which increased by 5.05 percent year on year, from Rs. 14,651 crore in Q3FY24. Their net profit increased by 10.40 percent year-on-year, from Rs. 1,076 crores in Q3FY24 to Rs. 1,188 crores in Q3FY25.
Revenue Segments
The company has earned its revenue from the Generation segment, which contributed around 30.76 percent, Renewables contributed 13.26 percent, Transmission and Distribution contribution stood at 55.29 percent, and the remaining 0.67 percent from others as of December 2024 quarter.
About the company
Tata Power Company Limited is a part of the Tata Group. They lead in integrated power utilities in India while focusing on renewable energy generation and solutions across the power value chain.
Written by Santhosh S
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