One of the Tata Group stocks engaged in the business of the generation, transmission, distribution of electricity, and manufacturing of solar roofs. The stock is in focus after announcing a partnership with Bhutan’s Druk Green Power Corporation Limited to develop 5,000 MW of clean energy projects in a landmark regional collaboration.
Stock Movements:
On Thursday’s trading session, Tata Power Company Limited‘s share was down by 0.12% from the previous close of Rs. 408.10. The stock opened at Rs. 412 and is currently trading at Rs. 407.6, with a high of Rs. 412 and a low of Rs. 397.50. The market capitalization now stands at approximately Rs. 1,30,146.18 crore.
What Happened
Tata Power and Bhutan’s Druk Green Power Corporation Limited have announced a partnership to develop 5,000 MW of clean energy projects in Bhutan. This strategic collaboration aims to strengthen regional energy security and support India’s clean energy transition, with plans to generate 2,000 MW of hydro, 2,500 MW of pumped storage, and 500 MW of solar capacities.
The landmark agreement, signed in Thimphu in the presence of Bhutan’s Prime Minister and senior officials, represents the largest partnership between power companies in Bhutan and India. It aligns with Bhutan’s vision to expand its energy generation capacity to 25,000 MW by 2040 and diversify its energy portfolio beyond traditional hydropower.
Manufacturing and Production Updates:
The 4.3 GW solar cell and module manufacturing plant is now operational, with the module plant running at full capacity. The first 2 GW cell production line is stabilizing, while the second line is set to launch in November, reaching full capacity by December.
Future Outlook for Tata Power
Tata Power aims to target installing 1 million rooftop solar systems across Odisha, Uttar Pradesh, and Rajasthan, underscoring its leadership in renewable energy. Enhanced traction in rooftop solar projects and plans to ramp up solar capacity to 2-2.5 GW annually are set to significantly contribute to India’s green energy transition.
In the transmission and distribution sector, Tata Power is implementing four key projects, with two slated for commissioning in FY25 and the remaining two in FY26. The approval of a 1,000 MW pumped hydro project and the initiation of a 1,800 MW Shirawta project reflect its pioneering efforts in renewable energy storage solutions.
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Recent quarter results and ratios:
Tata Power Company Limited’s revenue has decreased from Rs. 15,738 crore in Q2 FY24 to Rs. 15,698 crore in Q2 FY25, which has down by 0.25 percent YOY. The net profit of Tata Power Company Limited has also grown by 7.47 percent, from Rs. 1,017 crore in Q2 FY24 to Rs. 1,093 crore in Q2 FY25.
Tata Power Company Limited’s revenue and net profit have grown at a CAGR of 20.51 percent and 34.29 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 11.7 percent and 11.3 percent, respectively. The debt-to-equity ratio of the company is to be 1.73x. Tata Power Company Limited’s EPS is to be Rs. 11.7.
Company Overview
Tata Power Company Limited stands as India’s largest vertically integrated power enterprise, spanning electricity generation, transmission, and distribution. The company pioneers renewable energy solutions, targeting complete green power production. The company operates across generation, renewables, transmission, and distribution segments, with strategic plans to develop 1 lakh EV charging stations by 2025.
Written By – Nikhil Naik
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