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Shares of Torrent Power surged over 9 percent to Rs 1,985, a day after the company announced that it has secured a significant contract from Maharashtra State Electricity Distribution Company Ltd (MSEDCL). The energy player received a letter of award for the long-term supply of 2,000 MW energy storage capacity from its upcoming InSTS Connected Pumped Hydro Storage Plant.
“Torrent Power Limited, one of the leading private sector integrated power utility with presence across generation, transmission and distribution and part of the Torrent Group, has received letter of award from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for long-term supply of 2,000 Megawatt (MW) Energy Storage Capacity from InSTS Connected Pumped Hydro Storage Plant,” said the company in a filing to the exchanges.
The 2 contracts that the company has signed with MSEDCL are for a supply of 1500 MW energy supply capacity and an additional 500 MW energy storage capacity.
MSEDCL will procure energy storage capacity from Torrent Power’s InSTS-connected pumped hydro storage for 40 years. The company plans to supply the storage capacity from its upcoming InSTS-connected pumped hydro storage plant being set up in Maharashtra.
Under the Energy Storage Facility Agreement (ESFA), Torrent Power will provide MSEDCL with 2,000 MW of capacity for scheduled 8-hour daily discharges (maximum continuous 5 hours), with MSEDCL supplying the input energy for charging.
Torrent Power has identified Pumped Storage Project (PSP) sites in several states, including Maharashtra, and plans to install 5-8 GW of PSP capacity with an investment of Rs 25,000 to Rs 35,000 crore.
In Q1, its net profit surged 87.2 percent on-year jump in net profit at Rs 996.3 crore and its revenue from operations increased 23.3 percent YoY to Rs 9,033.7 crore in Q1FY25. At the operating level, Torrent Power’s earnings before interest, tax, depreciation, and amortisation (EBITDA) jumped nearly 57 percent to Rs 1,857.9 crore in the fiscal first quarter. Its EBITDA margin improved to 20.6 percent compared to 16.2 percent in the corresponding period in the previous fiscal.
Torrent Pharma shares have rallied 110 per cent since the start of the year.
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