Tata Power Co. will try to secure hybrid projects in the renewable energy space, as it aims to achieve nearly 70% green energy generation target by 2030, according to Chief Executive Officer and Managing Director Praveer Sinha.
"We mainly bid for hybrid projects of solar and wind or a combination of fixed duration renewable project, which contains solar, wind and battery and pump storage (hydro)," Sinha told NDTV Profit, adding, "We have a clear and detailed action plan to achieve the 70% target."
The new 2 gigawatt cell plant at Tirunelveli will start production by November and the full impact of module and cell plant stabilisation will come in the fourth quarter, he said.
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The CEO expects Tata Power to deliver consistent revenue growth of 10% on a consolidated basis annually and even more than that in some segments like rooftop solar.
This segment is expected to record 30% growth in income this year, due to rising demand for the cheaper alternative energy source at the household level, fueled by a big government subsidy scheme.
The company had a turnover of Rs 2,300 crore in rooftop solar business in financial year 2024 and this will rise by 30% this fiscal, Sinha said.
"The outlook for solar EPC and third party rooftop remains good...Last year, we made Rs 2,300 crore. This year we are expecting 30% increase over that," he said.
He attributed the prospects to the PM Surya Ghar scheme, which provides for a subsidy to households for solar rooftop adoption. The scheme has an outlay of Rs 75,021 crore and is to be implemented till fiscal 2027.
Tata Power's profit rose 7% in the second quarter of fiscal 2025 to Rs 1,093 crore, meeting the consensus estimate shared by analysts.
Tata Power Share Price Movement
Tata Power share price rose 2.5% intraday to Rs 437.7 apiece and hovered around the level as of 10:18 a.m.
Tata Power share price rose 2.5% intraday to Rs 437.7 apiece and hovered around the same level as of 10:18 a.m. The benchmark Nifty 50 was down 0.35% at the time.
The stock has risen 81% in the last 12 months and 31% on a year-to-date basis. Total traded volume stood at 2.2 times the 30-day average. The relative strength index was 16, indicating the scrip is oversold.
Of the 23 analysts tracking the company, 14 have a 'buy' rating on the stock, one recommends 'hold' and eight suggest 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price target implies a potential upside of 0.5%.
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