hit a 52-week high of ₹418.45 on the NSE on Friday morning after reports emerged that Gujarat has approved a revised power purchase agreement with the company, clearing the way for electricity supply to resume from its 4-gigawatt Mundra plant.
At 11.35 am, the stock was trading at ₹408.65, up 2.55 per cent or ₹10.15 from the previous close of ₹398.50. The stock opened at ₹402 and touched a low of ₹402 in early trade. Traded volume stood at 155.27 lakh shares with a traded value of ₹640.90 crore. Total market capitalisation was at ₹1,30,529.62 crore.
The Gujarat government has approved a supplementary PPA with Tata Power, according to a government document seen by Reuters. Similar agreements are expected to be finalised with Maharashtra, Rajasthan, Punjab, and Haryana, with the Gujarat pact likely serving as a template. The deal still requires approval from the federal power regulator and would take effect retrospectively from April 2025.
The Mundra plant, which runs on imported coal, had been shut for six months after the government withdrew an emergency clause that compensated companies for generating power using expensive imported coal. The shutdown resulted in losses of around ₹1,000 crore for Tata Power in the first nine months of FY26. The company’s consolidated net profit fell 25.1 per cent to ₹771.98 crore in Q3 FY26.
MD and CEO Praveer Sinha said the new agreement offers better cost visibility and more stable cash flows, and that recovery is expected as utilisation improves at Mundra.
Tata Power shares have gained nearly 11 per cent over the past year and are up about 7.5 per cent year-to-date, significantly outperforming the Nifty Next 50, which is down 7.14 per cent YTD.
Pointers
- Gujarat approves revised PPA with Tata Power for its 4-GW Mundra plant, which had been shut for six months after the government withdrew an emergency clause compensating for expensive imported coal costs, resulting in ~₹1,000 crore in losses in the first nine months of FY26.
- The deal needs federal regulator approval and will take effect retrospectively from April 2025, with similar agreements expected with Maharashtra, Rajasthan, Punjab, and Haryana using the Gujarat pact as a template.
- Tata Power shares hit a 52-week high of ₹418.45 on the NSE on Friday, trading at ₹408.65 (up 2.55%) at 11:35 IST, with a traded value of ₹640.90 crore and a market cap of ₹1,30,529.62 crore.