Tata Power To Bid For Hybrid Solar-Wind Projects On Way To Business Transition
The new 2 gigawatt cell plant at Tirunelveli will start production by November, Tata Power CEO Praveer Sinha said.
Tata Power Co. will try to secure hybrid projects in the renewable energy space, as it aims to achieve nearly 70% green energy generation target by 2030, according to Chief Executive Officer and Managing Director Praveer Sinha.
"We mainly bid for hybrid projects of solar and wind or a combination of fixed duration renewable project, which contains solar, wind and battery and pump storage (hydro)," Sinha told NDTV Profit, adding, "We have a clear and detailed action plan to achieve the 70% target."
The new 2 gigawatt cell plant at Tirunelveli will start production by November and the full impact of module and cell plant stabilisation will come in the fourth quarter, he said.
The CEO expects Tata Power to deliver consistent revenue growth of 10% on a consolidated basis annually and even more than that in some segments like rooftop solar.
This segment is expected to record 30% growth in income this year, due to rising demand for the cheaper alternative energy source at the household level, fueled by a big government subsidy scheme.
The company had a turnover of Rs 2,300 crore in rooftop solar business in financial year 2024 and this will rise by 30% this fiscal, Sinha said.
"The outlook for solar EPC and third party rooftop remains good...Last year, we made Rs 2,300 crore. This year we are expecting 30% increase over that," he said.
He attributed the prospects to the PM Surya Ghar scheme, which provides for a subsidy to households for solar rooftop adoption. The scheme has an outlay of Rs 75,021 crore and is to be implemented till fiscal 2027.
Tata Power's profit rose 7% in the second quarter of fiscal 2025 to Rs 1,093 crore, meeting the consensus estimate shared by analysts.
Tata Power Share Price Movement
Tata Power share price rose 2.5% intraday to Rs 437.7 apiece and hovered around the level as of 10:18 a.m.
Tata Power share price rose 2.5% intraday to Rs 437.7 apiece and hovered around the same level as of 10:18 a.m. The benchmark Nifty 50 was down 0.35% at the time.
The stock has risen 81% in the last 12 months and 31% on a year-to-date basis. Total traded volume stood at 2.2 times the 30-day average. The relative strength index was 16, indicating the scrip is oversold.
Of the 23 analysts tracking the company, 14 have a 'buy' rating on the stock, one recommends 'hold' and eight suggest 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price target implies a potential upside of 0.5%.
