Tata Power share price jumps 5% from day's low after partnership deal with Amazon Web Services

Stock market today: Shares of Tata Power Company rebounded 5% from the intra-day low in trade on Thursday, February 20, following the announcement of a partnership with Amazon Web Services (AWS) to accelerate the country’s transition to a greener, smarter, and more consumer-centric energy ecosystem.

According to the release on exchanges, Tata Power has entered into a strategic collaboration with Amazon Web Services to modernise its digital infrastructure and drive intelligent energy management.

The evolution of energy systems demands real-time analytics, automation, and decentralized power generation to optimise supply and demand. Digitalization enables grid stability, predictive maintenance, and seamless energy transactions, ensuring sustainability and operational efficiency. Tata Power through its partnership with AWS focuses on this digital-first approach, harnessing cloud computing, artificial intelligence (AI), and IoT to build a smarter, more efficient power ecosystem.

Tata Power has built a robust digital foundation by migrating 23 mission-critical applications to AWS using Amazon Elastic Kubernetes Service (EKS). This shift improves scalability, security, and real-time operational efficiency across power generation, renewables, grid management, sales, and finance. The company has also adopted a serverless architecture with AWS Step Functions, optimizing energy transactions and grid operations to respond to fluctuating demand.

At the core of this transformation are two specialized data lakes dedicated to power generation and renewables. These ingest real-time data from solar farms, wind assets, smart meters, and IoT devices. Using AWS Glue, Tata Power integrates these datasets into Amazon S3, enabling AI-powered analytics for predictive maintenance, grid optimization, and demand forecasting.

Tata Power's portfolio includes 15.6 GW of total capacity, with 6.7 GW from clean energy, representing 43% of its total capacity.

Rating Upgrade

The company has also received a rating upgrade from global brokerage firm HSBC, driving investor interest. Ramp-up in solar module and cell manufacturing business and turnaround in EPC business are key drivers behind HSBC's rating action.

"TPWR’s solar module and cell manufacturing business is ramping up nicely, with the company generating H1 profit and Q3FY25 already reaching 17% EBITDA margin. We are constructive on Module+Cell margin in

the next year. EPC business also seems to have turned around, though progress on renewable power commissioning still needs to ramp up and Tata guides for aggressive execution on that front," said HSBC.

HSBC updated estimates and valuation to factor in project progress, a strong start to solar module/cell manufacturing, and the start of new programmes like pumped storage and hybrid. It increased FY25-26e EPS estimates by 9-13%.

"We roll forward our valuation basis and continue to use a sum-of-parts valuation, resulting in a new target price of ₹345 (up from INR 300), which implies a 2% upside," said HBSC while upgrading the stock rating to 'Hold' from 'Reduce'. Sustained weakness in power demand and weaker execution remain risks to the downside.

Stock Impact

Following this, shares of Tata Power rebounded 5% from the day's low to a high of ₹361. The stock opened in line with the previous close and hit the day's low of ₹344.75.

At 1.45 pm, Tata Power share price was at ₹356.95, up 2.7%, on the BSE.

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