Mumbai, June 26 -- Shares of MSP Steel and Power rose to an upper circuit of five per cent at Rs 44.22 after the company entered into a power purchase agreement with Elevate Solar Energy to procure solar power aimed at increasing its renewable energy consumption. The deal prompted trading limits to be hit as investors responded to the long term supply arrangement.
Under the agreement the company will procure power from a 10 megawatt-peak (MWp) contracted solar capacity at a tariff of Rs 3.17 per unit for a period of 25 years from the date of execution of the PPA. As part of the arrangement the firm will acquire a 26 per cent equity stake in Elevate Solar Energy corresponding to its contracted energy requirement, subject to the terms of a shareholders' agreement to be executed later.
Elevate Solar Energy is developing a solar power project in Baloda Bazar district of Chhattisgarh with an installed capacity of 70 MWp (DC) and 50 MW (AC) which will supply the contracted energy. MSP Steel and Power is engaged in the manufacture and trading of iron and steel products, generation of power, manufacture and sale of cement clinker products and trading of industrial gases, and the PPA forms part of its strategy to boost the use of renewables in operations.
The company reported a consolidated net profit of Rs 851.9 million (mn) in the quarter ended March 2026, against a consolidated net loss of Rs 338.2 million (mn) in the year earlier quarter. Revenue from operations rose by seven point four per cent year on year to Rs 8.16 billion (bn) in the quarter, and the company indicated the equity investment and long term tariff structure are intended to enhance power supply stability and cost visibility across the concession period.
Published by HT Digital Content Services with permission from Construction World.