Synopsis: Penny stock rose 5% after signing a five-year PPA to supply 60 MW RTC power to TNPDCL at ₹5.91/unit, securing full operations and coal linkage under SHAKTI Policy 2025, with IPP Certification ensuring stable, profitable operations through March 2031.
The shares of an Penny stock company, which specialises in manufacturing high-quality Thermo Mechanically Treated (TMT) bars for construction, synthetic woven fabrics, and FIBC/PP woven sacks for industrial packaging, are in the spotlight upon securing the Power Supply Contract with Tamil Nadu Power Distribution Corporation Limited.
With a market capitalization of Rs. 38.52 crores in the day’s trade, the shares of Tulsyan NEC Ltd hit a 5 percent upper circuit, reaching a high of Rs. 23.40 per share compared to its previous closing price of Rs. 22.29 per share.
What Happened
Tulsyan NEC Limited has signed a Back-to-Back Power Purchase Agreement (PPA) with Manikaran Power Limited to supply 60 MW of Round-the-Clock (RTC) power to Tamil Nadu Power Distribution Corporation Limited (TNPDCL) at Rs. 5.91 per unit.
The agreement, effective from April 2026 to March 2031, follows the Company’s successful bid in TNPDCL’s 1000 MW RTC power tender, ensuring full-scale operations of its power plant units for the next five years.
With this PPA, Tulsyan NEC becomes eligible for coal linkage under the SHAKTI Policy 2025, enabling access to domestic coal at competitive rates. The Company has also received IPP Certification from the Central Electricity Inspectorate General, a requirement for the coal allocation, which is expected to support consistent and profitable operations throughout the PPA tenure.
They have also issued an addendum to their earlier PPA with Manikaran Power Limited, clarifying that the award of the 60 MW power supply contract is based on the Company’s technical capacity and grid connectivity. The addendum also states that the sources of power supply cannot be changed during the PPA tenure without the Company’s prior consent.
Financials & Others
The company’s revenue declined by 13.39 percent from Rs. 180 crores in December 2024 to Rs. 156 crores in December 2025. Meanwhile, Net loss rose from Rs. 27 crores to Rs. 29 crores in the same period.
Tulsyan NEC Ltd is a Chennai‑based public limited company incorporated in 1947, originally known as National Engineering Company before being renamed under the Tulsyan Group in the mid‑1990s. It specializes primarily in steel and metal products, with diversified operations that include Thermo Mechanically Treated (TMT) bars, sponge iron, billets and ingots, as well as woven HDPE/PP sacks for packaging applications.
The company is ISO‑certified and has historically been one of South India’s notable TMT steel manufacturers, integrating its own steel‑making and power facilities to support production.
Over the decades, Tulsyan NEC has developed a presence in both steel manufacturing and related industrial segments, serving sectors like construction and industrial packaging. Its products, especially TMT rebars, are used widely in infrastructure and building projects, while its synthetic division manufactures woven sacks for industries such as cement, fertilizers, and food grains.
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