Synopsis:
An energy stock sores more than 2 percent as company plans on a Rs 10,000 crore, 10 GW ingots-and-wafers manufacturing facility in Odisha which displays a strategic solar project expansion.
On Thursday, an energy stock has been in the spotlight as the stock soured up by more than 2 percent soon after the company announced plans for a Rs 10,000 crore, 10 Giga Watt ingots and wafers facility.
With a market cap of Rs 1,25,625 Crore, Tata Power Company Ltd saw its stock hit an intraday high of Rs 399.95 which is a 2.1 percent increase from the previous close of Rs 391.50.
What’s the News?
On Thursday,Tata Power Company Ltd drew attention to itself soon after the reports emerged stating that it is in talks with the government of Odisha to establish a new 10 GW ingots‑and‑wafers manufacturing plant, a project that could cost around Rs 10,000 crore. The company currently operates a 4.55 GW solar cell and module manufacturing capacity, and this proposed facility would allow Tata Power to vertically integrate using ingots and wafers as raw materials for solar cells, modules, and even semiconductors.
This plant is being considered at either Gopalpur or Cuttack, both of which have port proximity and even a strategic advantage for logistics. This highlights upon Tata Power’s push to deepen its renewable-energy manufacturing footprint and potentially reducing the import dependence for solar and semiconductor components.
Financial Overview
Lately, the company did not have a great quarter, as the revenue from operations saw a QoQ dip of 13.8 percent, by going down from Rs 18,035 Cr in Q1FY26 to Rs 15,545 Cr in Q2FY26, while the YoY revenue went down by 0.9 percent from Rs 15,698 Cr in Q2FY25.
The company saw its net profits grow by 13.9 percent on YoY basis, going from Rs 1,093 Cr in Q2FY25 to RS 1,245 Cr in Q2FY26. While on QoQ basis the profits took a dip of 1.3 percent, by going down from Rs 1262 Cr in Q1FY26.
Moreover, the company has a 5 year profit CAGR of 46 percent, and the stock has also given a 5 year compounding return of 43 percent. With a dividend payout ratio of 20.1 percent, the company has a 3 year ROE of 12 percent.
Tata Power Company Ltd is the country’s largest vertically integrated power utility which operates across electricity generation, transmission, and distribution. The company has been expanding in the renewable energy space, and aims for entirely clean power in the future. It also manufactures solar rooftops and targets installing 1 lakh EV charging stations by 2025, by strengthening its position in India’s green energy transition.
Written by Adithya Menon
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