Tata Power Company Ltd shares surged 6.9% to hit intra-day high of ₹446.95 on the BSE on Tuesday, following the announcement of its subsidiary, TP Solar, starting commercial production of solar cells at its 2 GW manufacturing facility in Tirunelveli, Tamil Nadu.
TP Solar, one of India's solar cell and module producers, operates under Tata Power Renewable Energy Limited (TPREL), which is a subsidiary of Tata Power.
Tata Power's stock closed at ₹445.20 on the BSE on Tuesday, reflecting a 6.55% increase from its previous close of ₹417.85. The stock opened higher today at ₹422, in sync with the strong broader market. The company’s market cap stands at ₹1,42,256.52 crore. Over the past month, the stock has climbed 6.56%, surged 12.50% in the last six months, and gained 34.91% year-to-date (YTD).
The company informed the exchanges that the current 2 GW production capacity will bolster Tata Power's ability to supply high-quality, locally-made solar components, crucial for large-scale solar projects. “The indigenous production of solar cells marks a significant milestone, supporting India’s ambitious clean energy goals and reducing reliance on imports,” Tata Power states.
The company claims this facility as India's largest single-location integrated facility, which is run by an 80% women workforce. The plant plans to scale up production in the coming weeks, with the additional 2 GW capacity set to be operational within four to six weeks, reaching full production capacity within a few months, according to Tata Power.
Speaking on the commencement of cell production at Tirunelveli plant, Praveer Sinha, CEO & managing director, Tata Power, says, “The commencement of cell production at our Tirunelveli plant is a significant step towards indigenisation in the solar value chain and achieving self-sufficiency. We are committed to making solar power accessible to all and ensuring a bright future for India, powered by renewable energy. We believe that this plant will lead the way in supporting the country's vision for a Net-Zero carbon future.”
The company noted that it has allocated close to ₹4,300 crore for setting up this facility, which is central to Tata Power's vision of leading India's shift to renewable energy, especially in the solar rooftop and utility-scale markets, where it already holds a 20% market share and seeks to expand further through initiatives like PM Surya Ghar Yojana, it adds.
“While the modules produced from this factory are a part of the Government's Approved List of Models and Manufacturers (ALMM), the company is confident that its high-quality cells will also make it to the ALMM list for cells, expected to be announced by the Government soon,” Tata Power states.
The company aims to grow its renewable energy portfolio from 41% to 70% by 2030, positioning itself as a prominent player in the global energy transition.
Tata Power's net profit increased by 4% year-on-year (YoY) to ₹1,189 crore for the June quarter, driven by improved operational efficiency, up from ₹1,141 crore in the same period last year. The company's revenue also saw a 12% YoY growth, reaching ₹16,810 crore in the first quarter, compared to ₹15,003 crore in the corresponding quarter of the previous year.
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