GK Energy shares touched a day’s high of Rs 128.30 on Monday after the company won a battery storage order from MSEDCL in Maharashtra.

GK Energy has received a Letter of Award from Maharashtra State Electricity Distribution Company Limited, also known as MSEDCL, to build a 150 MW or 300 MWh Battery Energy Storage System in Maharashtra.

The company confirmed this development through its regulatory filing on September 21.

Here is how the deal is structured. The project will be developed with support from the government’s Viability Gap Funding scheme.

Instead of earning a one time payment, GK Energy will receive recurring monthly revenue over a period of 15 years, starting from when the project begins commercial operations.

Based on a tariff of Rs 2,38,000 per MW per month, this works out to annual revenue of around Rs 42.84 crore, excluding GST.

Over the full 15 year period, that could add up to roughly Rs 642.60 crore in total, assuming the revenue stays steady throughout.

The company has 18 months from the date of signing the Battery Energy Storage Purchase Agreement to get the project up and running.

GK Energy also clarified that this is a purely domestic contract, with no involvement from its promoter group or any related parties, meaning it does not fall under related party transaction rules.

This marks a meaningful step for GK Energy, which has largely built its business around solar powered agricultural water pumping systems under the PM KUSUM scheme, along with rooftop solar projects.

Battery storage is a segment the company has previously flagged as an area it wants to grow into, as India continues to expand renewable energy capacity and looks for ways to make power supply more stable.

Coming back to the stock, GK Energy shares closed at Rs 126.59 on the NSE on Monday.

The counter has had a tough stretch recently, down nearly 17% over the past three months and close to 18% on a year to date basis, even as fresh order wins like this one add to its long term growth story.

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