Techno Electric shares hit 5% upper circuit on partnership with IndiGrid for interstate transmission project

The company has entered into a strategic partnership with IndiGrid (India Grid Trust) to co-develop and invest in two of IndiGrid's greenfield Interstate Transmission System (ISTS) projects, Techno Electric informed the stock exchanges in a filing.

These projects include Ishanagar Power Transmission Limited (IPTL) and Dhule Power Transmission Limited (DPTL).

Under the partnership, both entities have signed a Securities Subscription Cum Shareholders Agreement (SSSHA).

Techno Electric will make a minority capital investment in these projects and will take full responsibility for their execution under a Lump Sum Turnkey (LSTK) contract.

This collaboration aims to leverage Techno Electric’s expertise in project execution and IndiGrid's focus on expanding its transmission infrastructure portfolio.

Commenting on the partnership with IndiGrid, Techno Electric's Chairperson, Padam Prakash Gupta said, “As a pioneer and leader in the energy transmission sector, Techno is immensely proud and honoured to collaborate with IndiGrid in advancing India’s transmission story. With our deep execution capabilities, a strong balance sheet, and a shared vision for sustainable growth, we view this collaboration as a long-term strategic partnership that will shape the future of energy transmission in the country."

Techno Electric’s consolidated total income for the June quarter increased 27.81% year-on-year to ₹390 crore compared to ₹305.15 crore in the year-ago period. However, on a quarter-on-quarter basis, the revenue dropped 17.17% from ₹470.88 crore in Q4FY24.

The company’s net profit grew 288.36% YoY to ₹98.1 crore in Q1FY25, compared to ₹25.26 crore in the year-ago period. Sequentially, the net profit also increased 26.52% from ₹77.54 crore compared to the last quarter of FY24.

Share of Techno Electric opened 2.59% higher at ₹1,690 apiece on the NSE on Monday, from its previous closing price. The power infrastructure stock gained up to 5% in intraday trade to hit the upper circuit limit of ₹1,729.6 apiece.

In the last one year, Techno Electric & Engineering Company Limited shares have delivered impressive returns of over 253% and more than 112% in the past six months. The stock has gained 12.5% in the last one month.