Tata Group stock jumps 4% after 200-MW PPA with NTPC for renewable energy project

The shares of this Tata Group stock primarily engaged in the business of the generation, transmission and distribution of electricity jumped over 4 percent after signing a 200 MW power purchase agreement with NTPC Ltd. 

Stock Performance

With a market capitalization of Rs 1.2 lakh crore, Tata Power Company Ltd jumped 4 percent in Tuesday’s trading session to a high of Rs 380.50 per share compared to its previous closing price of Rs 364.50.

What Happened

Tata Power Renewable Energy Limited has signed a Power Purchase Agreement with NTPC Ltd. for a 200 MW firm and dispatchable renewable energy project. The capital commitment for this project is around Rs 4,500 crore and is expected to be finished within 24 months. The project will generate 1,300 MUs of electricity annually, reducing over 1 million tons of CO₂ emissions and strengthening India’s clean energy goals.

With this project, the company’s total renewable energy capacity has reached 10.9 GW. Out of this, 5.5 GW is currently operational, including 4.5 GW from solar energy and 1 GW from wind energy. 

The remaining 5.4 GW is in various stages of development, equally divided between 2.7 GW of solar and 2.7 GW of wind projects. The ongoing projects are expected to be completed in phases over the next 6 to 24 months in a staggered manner. 

Also read: Financially strong stocks in which Govt of Singapore increased its stake in Q4 FY25 to keep an eye on

Company Overview

Tata Power Company Limited, a leading integrated power company and a part of the Tata Group owns a diversified portfolio of 15.7 GW. This portfolio spans the entire power value chain, from renewable and conventional energy generation to transmission, distribution, trading, storage solutions, and solar cell and module manufacturing. 

The company has 6.8 GW of clean energy generation, which makes up about 44 percent of its total capacity. Tata Power routinely partners with public and private entities across India to achieve carbon neutrality before 2045. 

Financial Performance

When looking at the latest financials, the company reported a modest 5 percent increase in revenue from Rs 14,651 crore to Rs 15,391 crore in Q3 FY24-25. This was accompanied by a 10 percent growth in net profits from Rs 1,076 crore to Rs 1,188 crore during the same period. 

Written by Shwetha Sairam 

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.