The 18.75 MW AC group captive solar power project agreement was signed by Tata Communications Ltd and Tata Power Company Ltd's subsidiary, Tata Power Renewable Energy Ltd, on Wednesday.

"The project has an estimated order value of Rs 105 crore, and it is being facilitated by Nivade Windfarm Ltd, a special purpose vehicle (SPV). The plant, which is situated in Aachegaon, Maharashtra, is expected to offset more than 30,000 tonnes of CO2 emissions yearly and provide about 40 MUs of power, according to an exchange filing.

"While the decision to 'go green' demonstrates feasibility and immense benefits of sustainable energy practices, it also reflects the broader efforts within the sector to reduce environmental impact and champion a more sustainable and responsible business ecosystem," it stated.

"Our customized green energy solutions, like Group Captive Solar, will not only reduce operating costs but also increase energy efficiency, paving the way for a sustainable and future-ready sector," stated Deepesh Nanda, CEO and Managing Director of Tata Power Renewable Energy.

The shares of Tata Power were last seen trading at Rs 368.60, up 0.99%.

Comparing the company's third-quarter (Q3 FY24) consolidated net profit year over year (YoY), it increased by 2.28 percent. In December 2023, the company's profit was Rs 1,076.12 crore, compared to Rs 1,052.14 crore in the same month the previous year.

In Q3 FY24, revenue from operations increased to Rs 14,651 crore from Rs 14,129.12 crore in the same quarter the previous fiscal year, a 3.69 percent increase.

Additionally, Tata Power's expenses increased correspondingly, from Rs 13,745.89 crore in Q3 FY23 to Rs 14,254.11 crore in the October–December 2023 quarter. EBITDA for the quarter increased by 15% YoY to Rs 3,250 crore during the review period.

With a lowered target price of Rs 303, domestic brokerage Nuvama Institutional Equities has downgraded its rating on Tata Power from "Hold" to "Reduce."