Tata-Group Power Company Signs PPA to Set up 80 MW Firm and Dispatchable Renewable Energy Project
DSIJ Intelligence-1 / 03 Oct 2025/ Categories: Multibaggers, Trending
The stock gave multibagger returns of over 660 per cent in 5 years with a PE of 30x, an ROE of 11 per cent and an ROCE of 11 per cent.
Tata Power Renewable Energy Limited (TPREL) has signed a Power Purchase Agreement (PPA) with Tata Power Mumbai Distribution for an 80 MW Firm and Dispatchable Renewable Energy (FDRE) project. This initiative will integrate advanced Solar, wind and battery storage systems. The key goal is to ensure reliable energy delivery, especially during peak demand, strengthening grid stability for Mumbai’s consumers.
The project is designed to generate approximately 315 million units (MUs) of electricity annually and is expected to be completed within 24 months. By displacing fossil fuel generation, it will mitigate over 0.25 million tons of carbon dioxide emissions each year, significantly supporting India’s clean energy goals. Crucially, the FDRE setup commits to a 4-hour peak power supply with a high availability rate to meet the growing energy needs of Tata Power Mumbai Distribution’s 8 lakh customers.
This collaboration is vital for Tata Power Mumbai Distribution, helping it meet its mandated Renewable Purchase Obligation (RPO). Once commissioned, the clean energy will be seamlessly integrated into the distribution network, ensuring the delivery of reliable, low-emission electricity to residential, commercial and industrial consumers. The project reinforces TPREL's leadership in the renewable sector, adding to its total utility capacity of 11.3 GW and underscoring its commitment to driving a greener and more resilient energy future for India.
About the Company
Tata Power Company Ltd, a leading integrated power company under India's largest conglomerate, Tata Group, boasts a diverse portfolio of 14,707 MW spanning the entire power spectrum. This includes the generation of both renewable and conventional energy, along with transmission, distribution, trading, storage solutions and even solar cell and module manufacturing. As champions for clean energy, they've committed to achieving carbon neutrality before 2045. Beyond generation, Tata Power has established India's most comprehensive clean energy platform, offering rooftop solar solutions, microgrids, storage solutions, EV charging stations and home automation systems.
According to Quarterly Results, the net sales increased by 4 per cent to Rs 18,035 crore and net profit increased by 6 per cent to Rs 1,262 crore in Q1FY26 compared to Q1FY25. In its annual results, the net sales increased by 5 per cent to Rs 64,502 crore and net profit increased by 12 per cent to Rs 4,775 crore in FY25 compared to FY25.
The company has a market cap of over Rs 1.20 lakh crore and has delivered good profit growth of 50 per cent CAGR over the last 5 years. The stock gave multibagger returns of over 660 per cent in 5 years with a PE of 30x, an ROE of 11 per cent and an ROCE of 11 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.