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.

This development follows MSEDCL’s previous letter of intent, issued on September 17, 2024, for 1,500 MW. An additional 500 MW has now been allotted under the same tender, bringing Torrent Power’s total storage capacity allocation to 2,000 MW.

The 40-year agreement under the Energy Storage Facility Agreement (ESFA) will see MSEDCL procuring storage capacity from the plant, capable of a scheduled discharge of 8 hours per day, with a maximum continuous supply of 5 hours. The plant, which will be located in Maharashtra, will utilize input energy provided by MSEDCL for charging.

As of June 30, 2024, Torrent Power’s installed generation capacity stood at 4.4 GWp, with a mix of gas-based, renewable, and coal-based power. Additionally, the company has 3.1 GWp of renewable projects in development.

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.

At about 10:20 am, shares of the company were trading at Rs 1,958, higher by 8 percent from the last close on the NSE. Torrent Pharma shares have rallied 110 percent since the start of the year.