Synopsis: Tata Group stock gained investor traction after receiving a Letter of Intent from REC for construction work and transmission service for 35 years leading to annual revenue generation of ~Rs. 156 Crores
The shares of this company primarily involved in the business of the generation, transmission and distribution of electricity, with aims to produce electricity completely through renewable sources, are in focus after receipt of SPV Project from REC.
With the market capitalization of Rs. 1,21,614.62 crore, Tata Power Company Ltd’s share on Friday made a day high of Rs. 383.45 per share, up around 1 percent from its previous day’s close price of Rs. 380.10 per share. It has delivered a return of 423.97 percent over a period of five years.
Significant Order
Tata Power has received a Letter of Intent (LOI) from REC Power Development and Consultancy Limited for acquiring a special purpose vehicle called Jejuri Hinjewadi Power Transmission Limited. This deal involves building and operating a new power transmission project on a Build-Own-Operate-Transfer basis.
The project requires constructing about 115 km of 400 kV double-circuit overhead lines from Jejuri to Hinjewadi, plus extensions at 400 kV substations in both areas. Tata Power will provide transmission services for 35 years starting from the Scheduled Commercial Operation Date, which is 24 months after transferring the SPV. The annual transmission charges for the project total Rs. 155.78 crore. It’s a domestic contract with no related party interests or promoter group involvement.
This project will add to the company’s total capacity of 26,326 MW as of Q2 FY26, where 15,953 MW is operational and 10,373 MW under construction being entirely in Clean & Green. Operational capacity includes segments like thermal, solar, wind, Hydro and Waste Heat Recovery .
Tata Power Company Ltd is primarily involved in the business of the generation, transmission and distribution of electricity. It aims to produce electricity completely through renewable sources. It also manufactures solar roofs and plans to build 1 lakh ev charging stations by 2025.
The revenue from operations declined by 1 percent to Rs. 15,545 crore in Q2 FY26 from Rs. 15,698 crore in Q2 FY25. EBIT grew by 1 percent to Rs. 3,302 crore in Q2 FY26 from Rs. 3,271 crore in Q2 FY25. Accompanied by an 18 percent growth in net profit to Rs. 1,245 crore in Q2 FY26.
Written by Gourav Pratap Singh
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