This Tata Group Stock engaged in the business of generation, transmission, distribution of electricity and manufacturing of solar roofs, jumps 3% after signing an MoU with the Andhra Pradesh government to develop up to 7,000 MW of renewable energy projects.
Stock Price Movement:
With a market capitalization of Rs. 1,15,527.50 crores, the share of Tata Power Company Limited has reached an intraday high of Rs. 362.80 per equity share, rising nearly around 3.27 percent from its previous day’s close price of Rs. 351.30. Since then, the stock has retreated and is currently trading at Rs. 361.55 per equity share.
What Happened:
Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power Company Limited, has signed an MoU with the Andhra Pradesh government to develop renewable energy projects worth up to Rs. 49,000 crore. This partnership will focus on solar, wind, and hybrid energy projects with a total capacity of 7,000 MW (7 GW).
The investment will play a crucial role in boosting Andhra Pradesh’s clean energy sector, creating jobs, and supporting local economic growth. Under the state’s Integrated Clean Energy (ICE) Policy, this initiative aligns with Andhra Pradesh’s goal of developing over 160 GW of renewable energy. The collaboration will not only enhance green energy adoption but also drive sustainable development in the region.
Capex Plans:
Tata Power has invested Rs. 12,000 crore in capital expenditure over the last nine months, equaling its total spending from the previous year. The company plans to invest another Rs. 10,000 crore in the current quarter, bringing the total capex for FY25 to Rs. 22,000 crore. This significant investment underscores its commitment to expanding renewable energy and infrastructure.
Manufacturing Plant:
Tata Power’s 4.3 GW solar cell and module manufacturing plant is now fully operational. The module facility is running at full capacity, while the first 2 GW cell production line has stabilized. The second production line is set to begin operations in November and is expected to reach full capacity by December, boosting solar production capabilities.
Future Outlook:
Tata Power is focused on expanding its renewable energy efforts by setting up 1 million rooftop solar systems in Odisha, Uttar Pradesh, and Rajasthan. The company aims to grow its solar capacity by 2–2.5 GW each year, strengthening its position in India’s clean energy sector.
In transmission and distribution, Tata Power is working on four major projects, with two set for completion in FY25 and the remaining two in FY26. Additionally, the company is advancing energy storage solutions with a 1,000 MW pumped hydro project and the 1,800 MW Shirawta project, reinforcing its commitment to sustainable power solutions.
Guidance:
Tata Power aims to expand its clean energy capacity to 23 GW by FY30, up from the current 6.7 GW. The company projects a 2.5x increase in net profit, reaching Rs. 10,000 crore, with Rs. 5,000 crore (50 percent) coming from renewables. To achieve this, Tata Power plans to invest Rs. 1.46 lakh crore in capital expenditure between FY25 and FY30, with 60 percent dedicated to renewable energy projects.
Recent quarter results:
Tata Power Company Limited’s revenue has increased from Rs. 14,651 crore in Q3 FY24 to Rs. 15,391 crore in Q3 FY25, which has grown by 5.05 percent. The net profit has also grown by 10.41 percent from Rs. 1,076 crore in Q3 FY24 to Rs. 1,188 crore in Q3 FY25.
Written by – Nikhil Naik
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