Power stock skyrockets 15% after receiving LoAs for 51.3 MW solar project

Synopsis:- The company won solar project orders worth 51.3 MW, boosting long-term visibility with a 25-year PPA at ₹2.74/unit. Despite 211% revenue growth to ₹9.37 crore, margins compressed sharply, with operating profit falling and profitability remaining under pressure.

The share of the solar product manufacturer gained up to 15 percent in today’s trading session after the company bagged a letter of award for the development of a 51.3 MW (AC) Solar Power Project.

With a market capitalization of Rs 298.67 crore, the shares of Surana Telecom and Power Ltd were trading at Rs 22.00 per share, increasing around 8.80 percent as compared to the previous closing price of Rs 20.22 apiece.

Letter of award

The shares of Surana Telecom and Power Ltd have seen bullish movement after securing eight LOAs for a 51.3 MW grid-connected solar project under PM KUSUM-C feeder solarisation. Awarded by MP Urja Vikas Nigam and MNRE, the project offers a  Rs 2.74/unit tariff, 25-year PPA tenure, 12-month commissioning timeline, and an estimated  Rs 175 crore investment, ensuring stable long-term revenues.

Financial & Other Highlights

The company has posted robust topline growth, with revenue surging by 211 percent from Rs 3.01 crore in Q2FY25 to Rs 9.37 crore in Q2FY26, reflecting improved execution and scaling.  However, profitability weakened significantly during the same time frame; net profit fell around 91 percent from Rs 1.91 crore to Rs 0.17 crore.

Over the past one year, operating performance has dropped sharply. Operating profit declined from  Rs 0.77 crore in Q2FY25 to just  Rs 0.25 crore in Q2FY26. Moreover, operating margin also compressed significantly, falling from a healthy 25.58% to only 2.67%, indicating rising costs and lower operating efficiency despite higher revenues.

Surana Telecom and Power operates across multiple infrastructure segments. It manufactures jelly-filled telecom cables with 2.9 million CKM capacity, approved by BSNL and Railways. The company runs a 12 MW solar PV module plant (5W–220W range) via a JV and operates 1.25 MW wind power, with plans to scale up to 5 MW.

Surana Telecom and Power is a diversified infrastructure company with operations spanning telecom cables, solar photovoltaic modules, and renewable power generation. It manufactures jelly-filled cables approved by major PSU operators, produces solar modules through a joint venture, and operates wind and solar power assets, supporting India’s clean energy and connectivity goals.

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