The stock rose as much as 5.5% to an intraday high of ₹128.30 on the NSE. It was trading at ₹126.36 as of 2:22 pm.
According to the company’s exchange filing, the project will be set up with viability gap funding (VGF) support. The project is to be commissioned within 18 months from the signing of the Battery Energy Storage Purchase Agreement (BESPA).
The order also provides GK Energy with recurring monthly revenue for 15 years from the start of commercial operations. The tariff has been set at ₹2.38 lakh per MW per month, translating into annual revenue of ₹42.84 crore, excluding goods and services tax (GST), over the 15-year period.
The latest award comes weeks after GK Energy received a Letter of Empanelment from a state government-owned power distribution company to install rooftop solar systems at 1 lakh households.
The Pune-based renewable energy company was allocated 1 lakh rooftop solar projects of 1 kilowatt (kW) each, taking the combined capacity of that programme to 100 MW. The contract was valued at about ₹454.5 crore, including GST, based on a rate of ₹45,450 per kW.
The new battery storage award adds another leg to GK Energy’s renewable energy business, alongside its rooftop solar projects.
The company had also reported strong financial performance for the June quarter. Consolidated net profit rose 54% year-on-year to ₹57 crore from ₹37 crore, while revenue from operations increased 55.4% to ₹505 crore from ₹325 crore a year earlier.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew 44% year-on-year to ₹82.4 crore. However, the EBITDA margin narrowed to 16.3% from 17.6% in the corresponding quarter last year.
With the latest MSEDCL award, GK Energy now has another large-scale renewable energy project, while the 15-year revenue arrangement provides visibility beyond the initial project execution period.