Tata Power stock hits 52-week high on pact with Chalet Hotels

Shares of Tata Power Company Ltd hit a fresh 52-week high today after the Tata group company arm, Tata Power Renewable Energy Ltd, signed an agreement with Chalet Hotels for a 6-MW AC project.

The Tata Group stock opened a gap-up at ₹256.55 and surged to an intra-day high of ₹262.30, its one-year high. At the current share price, the m-cap of the company stands at ₹83,478.25 crore.

The Tata Power stock has surged 5.67% in the past week; while 10.35%, 23.68%, and 22.68% in the past month; six months; and year-to-date period, respectively.

TPREL signed a power delivery agreement of 'Group Captive Project' for 6 MW AC (8.75 MWp) with Chalet Hotels Ltd, an owner, developer, asset manager, and operator of high-end hotels, resorts, and a hotel-led mixed-use developer across India.

The plant will generate 13.75 million units of clean energy from renewable sources under this arrangement. It will also reduce carbon emissions by 9,762 tonnes per year, aligning with the common vision of both companies to build a brighter, cleaner future for the hospitality industry.

Ashish Khanna, CEO, Tata Power Renewable Energy, says the association will make clean energy usage mainstream and also support the de-carbonisation of the hospitality industry."

Sanjay Sethi, MD & CEO, Chalet Hotels the power delivery agreement not only aligns with the company's sustainability goals but also supports India's green transition. "With this collaboration to explore 6 MW AC for a Group Captive project, we are delighted to brighten our greener energy horizon. It is a win-win for both the environment and our stakeholders."

Recently, TPREL entered into a PDA with Sanyo Special Steel Manufacturing India Private Ltd (SSMI) for a captive solar plant, with a capacity of 28.125 megawatts (AC). The solar plant is projected to produce annual electricity of 61.875 million units (MUs), which will meet the energy requirement of the steel manufacturing unit of “SSMI”.

The company also signed a pact for a 4.4 megawatts (AC) project with the ANAND Group, an automotive systems and parts industry major. Earlier, TPREL also secured a letter of award (LoA) for a 966-MWRTC hybrid project, which is marked one of the largest industrial round-the-clock (RTC) power purchase agreements within the group captive segment in the country.

With this project, the total renewables capacity of TPREL has reached 7,821 MW, including 3,689 MW under various stages of implementation and its operational capacity is 4,132 MW, which includes 3,139 MW solar and 993 MW wind.

For the April-June quarter of the current fiscal, Tata Power Company reported a consolidated net profit of ₹1,140.97 crore, up 29% from ₹883.54 crore a year ago. The consolidated revenue from operations increased marginally by 1.5% to ₹14,982.55 crore in Q1FY24, compared to ₹14,752.69 crore during the same period last year.

Tata Power’s EBITDA jumped 43% to ₹3,005 crore against ₹2,107 crore in the same period last year on lower under-recovery in the Mundra plant and positive regulatory order in Maithon Power Limited (MPL).

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