{"id":51850,"date":"2025-02-05T13:35:00","date_gmt":"2025-02-05T08:05:00","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=51850"},"modified":"2025-02-05T14:55:09","modified_gmt":"2025-02-05T09:25:09","slug":"tata-power-gains-3-post-strong-q3-earnings-whats-driving-the-rally","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/tata-power-gains-3-post-strong-q3-earnings-whats-driving-the-rally\/","title":{"rendered":"Tata Power Gains 3% Post Strong Q3 Earnings \u2013 What\u2019s Driving the Rally?"},"content":{"rendered":"
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Braced for Q3 results of around 124 companies, including Swiggy, the market started the trading session on a mixed note. However, Wednesday brought an almost 3% hike in the share prices of Tata Power, which declared its Q3 results on 4th February 2025. What were the highlights of Tata Power\u2019s December quarter results? And what drove the price rise? Let\u2019s decode.<\/p>\n\n\n\n

About Tata Power:<\/h2>\n\n\n\n

Tata Power is a leading integrated power company and part of the Tata Group, India\u2019s largest business conglomerate. The company operates a diverse portfolio of 14,707 MW across the power value chain, including renewable and conventional energy, transmission, distribution, trading, storage, and solar manufacturing.  <\/p>\n\n\n\n

A pioneer in India\u2019s clean energy transition, Tata Power generates 5,847 MW from renewable sources, making up 40% of its capacity. It aims to achieve carbon neutrality before 2045. Tata Power has also built India\u2019s most comprehensive clean energy platform, offering rooftop solar, microgrids, storage, EV charging, and home automation.  <\/p>\n\n\n\n

The company collaborates with public and private entities in power generation, transmission, and distribution, serving around 12.5 million customers across India. <\/p>\n\n\n\n

Highlights Of Q3 Performance:<\/h2>\n\n\n\n
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  1. <\/li>\n<\/ol>\n\n\n\n

    Profit Surge:<\/strong><\/h3>\n\n\n\n
    \"\"
    Source: Tata Power Q3 Report<\/a><\/figcaption><\/figure>\n\n\n\n
    Know More:  <\/strong>SEBI <\/b><\/a>Registered investment advisory |  Stock investment advisory<\/a><\/strong><\/pre>\n\n\n\n
    Tata Power earned a net profit of Rs.1187.54 crore in the quarter ending December 2024, which is 10% y-o-y growth and around 8.64% q-o-q growth. One of the reasons for the growth is attributable to the rise in power demand by 4.5% (y-o-y) in India. <\/p>\n\n\n\n
      \n
    1. Operational Revenue Growth:<\/strong><\/li>\n<\/ol>\n\n\n\n
      \"\"
      Source: Quarterly Reports<\/a><\/figcaption><\/figure>\n\n\n\n
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      The operational revenue trend is slightly upward, with an increase of around 5.05% on a year-on-year basis and a decrease from the previous quarter\u2019s Rs.15697.67 crore. The total revenue, however, saw a rise of nearly 3% from the last quarter and reached Rs.15793 crore. <\/p>\n\n\n\n
        <\/ol>\n\n\n\n
        3. Increased Market Share in Rooftop Solar Business:<\/strong><\/h3>\n\n\n\n
        The company\u2019s \u2018Ghar Ghar Solar\u2019 initiative continued in Tamil Nadu after spreading in UP, Kerala, Rajasthan, and Chhattisgarh, taking the total count to 2.5 GW of rooftop installations. As a result, the rooftop business revenue increased by 15% to Rs.509 crore as of the quarter ending December 2024. <\/p>\n\n\n\n
          <\/ol>\n\n\n\n
          4. Recent Projects Taken by Tata Power:<\/strong><\/h3>\n\n\n\n
          Noida International Airport has partnered with Tata Power Trading Company Ltd. (TPTCL) to supply 10.8 MW of wind power and Tata Power Renewable Energy<\/a> Limited (TPREL) to develop, operate, and maintain a 13 MW onsite solar power capacity. <\/p>\n\n\n\n
          TPREL signed a Power Purchase Agreement (PPA) for a 400 MW Hybrid Project with MSEDCL. Additionally, TPREL signed an MoU with the Odisha Renewable Energy Development Agency Limited (OREDA) to boost rooftop solar adoption for residential customers under the PM Surya Ghar Yojana.<\/p>\n\n\n\n
          Tata Power\u2019s solar manufacturing arm, TP Solar Limited, secured a \u20b9455 crore contract to supply 300 MWp ALMM modules to Maharashtra State Power Generation Company Limited. Tata Power also signed an MoU with the Asian Development Bank for US$4.25 billion to finance key clean energy power projects.<\/p>\n\n\n\n
          Impact on Tata Power Share Price:<\/h2>\n\n\n\n
          \"\"
          Source: Moneycontrol<\/a><\/figcaption><\/figure>\n\n\n\n
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          The share price of Tata Power saw a sudden surge of around 3% to reach an intraday high of Rs.375 during the first half of the day. Besides, the share has given a return of 4.87% in the last one week and 44.66% in the past three years.  <\/p>\n\n\n\n
          What Does This Mean For Investors?<\/h2>\n\n\n\n
          Tata Power’s strong Q3 earnings reflect steady growth, particularly in its renewable energy and rooftop solar segments. With a 10% YoY increase in net profit and a 5.05% rise in operational revenue, the company shows resilience amidst rising power demand in India. Its ambitious clean energy initiatives, like the \u2018Ghar Ghar Solar\u2019 program, and strong project pipeline\u2014including partnerships with Noida International Airport and the PPA for a 400 MW Hybrid Project\u2014contribute to long-term growth potential.<\/p>\n\n\n\n
          However, from an investor’s perspective, while Tata Power has made notable strides in renewable energy and solar manufacturing, some concerns linger. Despite the positive growth in renewable business PAT (+60% YoY), the overall renewable energy revenue saw a dip. Analysts at Nuvama maintain a \u2018reduce\u2019 rating with a target price of Rs 343, citing some shortfalls in Q3 earnings and a slower-than-expected pace of growth, particularly with renewable energy’s full contribution expected by FY28.<\/p>\n\n\n\n
          So, if you plan to invest in Tata Power, consider every aspect in detail and consider both company and market factors before making a decision.<\/p>\n\n\n
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