Tata Power Shares Soars 3% After Rs. 49,000 Cr Renewable Energy Deal With Andhra Pradesh

Tata Power shares today Jumped about 3% after the announcement of Mous of one of its subsidiaries. Tata Power Renewable Energy signed a significant Memorandum of Understanding (MoU) with the Andhra Pradesh government to develop up to 7,000 MW of renewable energy projects.

Tata Power Share Price Today

By midday, Tata Power stock was trading at Rs 357.65, with an increase of 6.20 points or 1.76%. The stock has risen in the past five trading sessions, gaining 4.73%. However, over the past six months, Tata Power shares have experienced a sharp decline of 19.69%, mainly influenced by broader market crashes seen lately. The stock's 52-week high stands at ₹494.85 per share, while the 52-week low is ₹326.25 per share.

Mega Renewable Energy Project Worth ₹49,000 Crore

The MoU between Tata Power Renewable Energy and the Andhra Pradesh government paves the way for the development of solar, wind, and hybrid renewable energy projects, with or without storage solutions, totaling 7,000 MW (7 GW). The project, valued at approximately ₹49,000 crore, is one of the largest renewable energy investments in the state.
The latest regulatory filing by the company says that this initiative closely aligns with Andhra Pradesh's Integrated Clean Energy (ICE) Policy, which plans to develop over 160 GW of renewable energy with an investment potential of ₹10 lakh crore. The MoU is expected to boost the local economy, foster skill development, and create new employment opportunities, contributing to the state's socio-economic growth.

Furthermore, "As part of the agreement, Tata Power Renewable Energy will conduct preliminary assessments, feasibility studies, and development activities to determine the viability of these projects. The New and Renewable Energy Development Corporation of Andhra Pradesh will provide facilitation support, site identification, and assistance in evacuation infrastructure, as mentioned in the exchange filing.

Tata Power Q3 Results

Tata Power released its Q3 earnings on February 4, reporting a 10.35% year-on-year (YoY) increase in net profit, which rose to Rs.1,187.54 crore from Rs.1,076 crore in the same quarter last year. On a quarterly basis, net profit saw an 8.6% rise from Rs. 1,093 crore recorded in the previous quarter.

For the quarter ending December 2024, Tata Power's revenue from operations stood at Rs.15,391 crore, reflecting a 5% YoY growth from Rs.14,651 crore. Additionally, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) witnessed a 7% increase, reaching Rs.3,481 crore, compared to Rs.3,250 crore in the corresponding quarter of the previous year.

About Tata Power Company Ltd.

Established in 1911, Tata Power is one of India's largest integrated power companies and a major member of the Tata Group. Tata Power boasts a diversified energy portfolio of 15.6 GW, spanning renewable and conventional energy generation, transmission, distribution, trading, storage solutions, and solar module manufacturing. Over the years, Tata Power has expanded its operations beyond India, establishing a presence in countries such as Singapore, Indonesia, South Africa, Zambia, Georgia, Mauritius, and Bhutan. The company's market capitalization stood at ₹1,14,584.88 crore. Its subsidiary, Tata Power Renewable Energy Limited (TPREL), is at the forefront of India's green energy transition. Tata Power is also involved in EV charging infrastructure, smart grid solutions, and energy efficiency initiatives.