TORNTPOWER - Torrent Power
π’ Recent Corporate Announcements
India Ratings has assigned a stable 'IND AA+' rating to Torrent Power's proposed βΉ4,000 crore NCDs and reaffirmed existing ratings for βΉ3,700 crore NCDs. The company is undertaking a massive βΉ650-700 billion capex plan through FY32, focusing on renewables, pumped storage, and thermal power. Despite the βΉ41.56 billion acquisition of Nabha Power adding significant debt, net leverage remains healthy at 1.6x as of 1HFY26. The ratings are underpinned by a regulated cost-plus model in the distribution business, ensuring steady 14-16% returns on equity.
- Assigned 'IND AA+/Stable' rating for new βΉ4,000 crore NCDs and reaffirmed 'IND A1+' for βΉ1,650 crore Commercial Paper.
- Net leverage improved to 1.6x in 1HFY26, providing balance sheet flexibility for the upcoming Nabha Power acquisition.
- Planned capex of βΉ650-700 billion until FY32 to be funded via a 75:25 debt-to-equity ratio.
- Under-construction renewable portfolio of 4.3 GW expected to drive significant EBITDA growth over the next 2-3 years.
- Regulated distribution and generation assets continue to provide stable cash flows with 14-16% post-tax return on equity.
Torrent Power Limited has announced a scheduled meeting with Kotak Institutional Equities on April 13, 2026. The meeting is set for 11:00 am IST and will be held in-person in Ahmedabad. This disclosure is made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Such meetings are part of the company's regular investor relations activities to discuss operational updates and business outlook.
- Scheduled meeting with Kotak Institutional Equities on April 13, 2026
- The meeting is scheduled to start at 11:00 am IST
- The interaction will be conducted in-person in Ahmedabad
- Disclosure made under Regulation 30 of SEBI LODR Regulations
Torrent Power has received formal approval from the Competition Commission of India (CCI) to acquire a 100% equity stake and convertible instruments of Nabha Power Limited. The acquisition is being made from L&T Power Development Limited, marking a significant expansion of Torrent's power generation portfolio. Nabha Power operates a 1,400 MW (2x700 MW) supercritical thermal power plant in Punjab. This regulatory clearance is a critical milestone in finalizing the transaction and integrating the asset into Torrent's operations.
- Acquisition of 100% equity stake and all convertible instruments of Nabha Power Limited.
- CCI approval received on April 07, 2026, following the initial intimation in February 2026.
- The target asset is a 1,400 MW supercritical thermal power plant previously owned by L&T.
- The transaction strengthens Torrent Power's position in the thermal power generation segment.
Torrent Power has completed an internal restructuring by selling 100% equity in three of its wholly-owned subsidiaries to another subsidiary, Torrent Energy Storage Solutions Private Limited. The total consideration for the transfer of these three entities is βΉ3,00,000, executed at arm's length. These subsidiaries currently have zero revenue and a negligible impact on the company's consolidated net worth of βΉ18,215.78 Crore. This move appears to be a strategic consolidation of the company's energy storage business vertical.
- Transfer of three wholly-owned subsidiaries (Storage Solutions 1, 2, and 3) to a single storage-focused parent subsidiary.
- Total transaction value is βΉ3,00,000, representing βΉ1,00,000 for each entity.
- The entities involved currently contribute 0% to the consolidated revenue of βΉ29,165.26 Crore.
- Transaction is a related party deal conducted at arm's length with no impact on consolidated financials.
Torrent Power has transferred 100% equity of three wholly-owned subsidiariesβTorrent Energy Storage Solutions 1, 2, and 3βto another wholly-owned subsidiary, Torrent Energy Storage Solutions Private Limited. The transaction was completed for a total nominal consideration of βΉ3,00,000. These entities currently contribute 0% to the company's consolidated revenue and have a negligible impact on the consolidated net worth of βΉ18,215.78 crore. This move is an internal reorganization likely aimed at consolidating the company's energy storage vertical.
- Transfer of three subsidiaries to Torrent Energy Storage Solutions Private Limited for βΉ3,00,000
- Subsidiaries involved currently have zero revenue and negligible net worth contribution
- Consolidated net worth of the parent company stands at βΉ18,215.78 crore
- Transaction conducted at arm's length as a related party transaction
- Move consolidates energy storage entities under a single wholly-owned subsidiary
Torrent Power Limited has received a demand order from the GST authorities in Uttar Pradesh totaling βΉ189.42 Crores. The demand includes βΉ94.71 Crores in CGST and SGST, along with an equivalent penalty of βΉ94.71 Crores for the period from April 2019 to September 2024. The dispute relates to GST applicability on rent for immovable properties and ancillary services. The company has stated it will challenge the order through an appeal and does not foresee a material financial impact at this stage.
- Total demand of βΉ189.42 Crores includes βΉ94.71 Crores tax and βΉ94.71 Crores penalty
- Tax demand is split equally between CGST (βΉ47.36 Cr) and SGST (βΉ47.36 Cr)
- The order covers a five-year period from April 2019 to September 2024
- Dispute pertains to GST on rent of immovable properties and incidental services
- Torrent Power intends to file an appeal against the order with the relevant authorities
Torrent Power has acquired 100% equity of Torrent Urja 47 Private Limited (TU47) from its wholly-owned subsidiary, Torrent Green Energy Private Limited. The acquisition involves 50,000 shares at a face value of βΉ10 each, totaling a cash consideration of βΉ5,00,000. This internal restructuring is designed to create a dedicated vertical for the company's thermal power business. TU47 is a newly incorporated entity with zero turnover, intended to serve as a vehicle for future thermal plant acquisitions.
- Acquisition of 100% equity (50,000 shares) for a total cash consideration of βΉ5,00,000
- Target entity Torrent Urja 47 was purchased from a wholly-owned subsidiary at arm's length
- Strategic move to establish a separate business vertical for thermal power plant acquisitions
- Target entity is a fresh incorporation (March 2025) with currently nil turnover
Torrent Power Limited has announced the closure of its trading window for all designated persons starting April 1, 2026. This measure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's annual financial disclosures. The window will remain closed until 48 hours after the audited financial results for the year ending March 31, 2026, are submitted to the exchanges. This is a standard regulatory procedure and does not indicate any fundamental change in the company's operations.
- Trading window for designated persons to be closed effective April 1, 2026.
- Closure is related to the upcoming audited financial results for the fiscal year ending March 31, 2026.
- The window will reopen 48 hours after the official announcement of the financial results.
- Compliance maintained under SEBI (Prohibition of Insider Trading) Regulations, 2015.
Torrent Power's subsidiary, Torrent Green Energy, has completed the acquisition of a 100% equity stake in Onix-One Enersol Private Limited for a nominal cash consideration of βΉ1,00,000. Onix-One is a renewable energy player that reported a turnover of βΉ19.44 crore in FY25, showing significant growth from βΉ2.07 crore in FY24. The acquisition is strategically motivated by the target's secured grid connectivity and identified land, which will support Torrent Power's upcoming renewable energy projects. This move strengthens Torrent's position as an integrated power player across generation, transmission, and distribution.
- Acquired 100% equity (10,000 shares) of Onix-One Enersol Private Limited for βΉ1,00,000.
- Target company turnover grew from βΉ2.07 crore in FY24 to βΉ19.44 crore in FY25.
- Strategic acquisition provides immediate access to secured connectivity and identified land for expansion.
- The transaction was completed through Torrent Green Energy Private Limited, a wholly-owned subsidiary.
- Onix-One Enersol operates specifically in the renewable energy generation sector.
Torrent Power Limited has announced a schedule for two virtual meetings with institutional investors and analysts. The first meeting is set with Nuvama Institutional Equities on March 23, 2026, at 11:00 am IST. The second meeting is scheduled with White Oak on March 25, 2026, at 11:00 am IST. These meetings are part of the company's routine engagement with the investment community under SEBI LODR regulations.
- Meeting with Nuvama Institutional Equities scheduled for March 23, 2026, at 11:00 am IST
- Meeting with White Oak scheduled for March 25, 2026, at 11:00 am IST
- Both scheduled interactions will be conducted via virtual mode
- Disclosure made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015
Torrent Power Limited has scheduled meetings with institutional investors and analysts for March 20, 2026. The company will conduct an in-person meeting with PL Capital Group in Ahmedabad at 9:30 am IST. This will be followed by a virtual meeting with SBI Pension Funds (Pvt) Ltd. at 11:30 am IST. These meetings are part of the company's regular investor engagement program as per SEBI LODR regulations.
- Meeting with PL Capital Group scheduled for March 20, 2026, at 9:30 am IST in Ahmedabad.
- Virtual interaction with SBI Pension Funds (Pvt) Ltd. planned for March 20, 2026, at 11:30 am IST.
- The schedule is subject to change based on exigencies on the part of the Investors/Company.
- Disclosure made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Torrent Power Limited has scheduled a virtual meeting with representatives from ICICI Prudential Mutual Fund. The meeting is slated for March 17, 2026, at 03:30 PM IST. This interaction is part of the company's regular engagement with institutional investors under SEBI LODR regulations. No specific financial results or material non-public information are expected to be the sole focus, but rather general business updates.
- Meeting scheduled with ICICI Prudential MF on March 17, 2026.
- The interaction will be conducted via virtual mode at 03:30 pm IST.
- Compliance filing made under Regulation 30 of SEBI (LODR) Regulations, 2015.
- The schedule remains subject to change based on participant availability.
Torrent Power has successfully allotted 2,00,000 secured, rated, and listed Non-Convertible Debentures (NCDs) totaling βΉ2,000 crore on a private placement basis. The issuance is divided into three series with tenures of 8, 9, and 10 years, all carrying a competitive coupon rate of 7.97% per annum. These funds are secured by a first pari passu charge on the company's movable and immovable assets, excluding specific renewable projects. The structured maturity profile between 2034 and 2036 indicates a long-term capital management strategy.
- Total allotment of 2,00,000 NCDs aggregating to βΉ2,000 crore with a face value of βΉ1 lakh each
- Fixed coupon rate of 7.97% p.a. with annual interest payments starting March 2027
- Three-tranche maturity structure: βΉ680 Cr (8 years), βΉ675 Cr (9 years), and βΉ645 Cr (10 years)
- Includes a protective covenant of 0.25% coupon hike per notch of credit rating downgrade
- Secured by first pari passu charge on specific movable and immovable assets of the company
Torrent Power reported a robust performance for Q3 FY26, with standalone net profit nearly doubling to βΉ712.16 crore from βΉ368.70 crore YoY. Revenue from operations grew to βΉ5,096.71 crore, while finance costs decreased significantly to βΉ191.30 crore. The board has rewarded shareholders with an interim dividend of βΉ15 per share and approved a substantial fundraise of up to βΉ7,000 crore through NCDs to fuel future growth. The company maintains a healthy financial position with a debt-equity ratio of 0.47.
- Standalone Net Profit surged 93% YoY to βΉ712.16 crore for the quarter ended December 31, 2025.
- Revenue from operations increased to βΉ5,096.71 crore compared to βΉ4,746.26 crore in the previous year's corresponding quarter.
- Board declared an interim dividend of βΉ15 per equity share for the financial year 2025-26.
- Approved raising up to βΉ7,000 crore through the issuance of Non-Convertible Debentures (NCDs) in one or more tranches.
- Finance costs reduced to βΉ191.30 crore from βΉ231.63 crore YoY, contributing to improved margins.
CRISIL has reaffirmed Torrent Power's long-term credit rating at 'AA+/Stable', reflecting strong financial health despite a massive βΉ60,000 crore capex plan through 2032. The rating agency highlighted the company's binding agreement to acquire Nabha Power for an enterprise value of βΉ6,889 crore, which will boost operational capacity to 6.4 GW. Financial metrics have improved significantly, with net debt to EBITDA dropping to 1.4x in FY25 from 2.2x in FY24, supported by a βΉ3,500 crore QIP. While leverage is projected to peak above 4.0x by FY2030 due to expansion, stable cash flows from regulated businesses provide a solid safety margin.
- CRISIL reaffirmed 'AA+/Stable' rating for βΉ5,140 crore in NCDs and bank loan facilities.
- Acquisition of 1,400 MW Nabha Power for βΉ6,889 crore enterprise value expected to conclude by June 2026.
- Net debt to EBITDA improved to 1.4x in FY25, aided by βΉ3,500 crore raised through a QIP.
- Planned capex of over βΉ60,000 crore between FY2026-2032 focused on renewables and pumped storage.
- Distribution business maintains high efficiency with T&D losses as low as 0.5% to 3.3% in key licensed areas.
Financial Performance
Revenue Growth by Segment
Consolidated operating income grew 5.3% YoY to INR 27,268 Cr in FY24. In Q2 FY26, Thermal Generation contribution increased by INR 293 Cr (primarily from merchant power and LNG sales), while the Distribution business adjusted contribution grew by INR 11 Cr. Renewable generation adjusted contribution decreased by INR 20 Cr due to lower wind resources.
Geographic Revenue Split
Revenue is concentrated in Gujarat (Ahmedabad, Surat, Gandhinagar, Dahej, Dholera), Maharashtra (Bhiwandi, SMK), Uttar Pradesh (Agra), and the Union Territory of DNHDD. Regulated businesses across these regions account for 60% of total revenue and 77% of EBITDA.
Profitability Margins
Adjusted PAT margin stood at 6.9% in FY24, a decline from 8.3% in FY23. Reported PBT for Q2 FY26 was INR 979 Cr, a 42% increase from INR 689 Cr in Q2 FY25, driven by higher merchant power gains and improved PLFs at gas-based plants.
EBITDA Margin
EBITDA is heavily supported by regulated businesses (77% contribution). Core profitability in Q2 FY26 was bolstered by a INR 304 Cr increase in merchant power and LNG sales, though partially offset by INR 11 Cr in higher O&M and FX variations.
Capital Expenditure
Planned capex of INR 22,000-25,000 Cr for FY25-FY27. This includes INR 19,000-20,000 Cr for 3 GW of renewable projects, INR 1,200-1,400 Cr for transmission projects, and INR 4,000 Cr for distribution network augmentation. An additional INR 13,000 Cr is planned for 3 GW of pumped storage projects.
Credit Rating & Borrowing
Maintains a 'CRISIL AA+/Stable' rating. Borrowing costs are influenced by a net debt to EBITDA ratio of 2.2x (FY24), which is expected to peak above 3.0x in FY26 due to heavy capex before moderating. The company raised INR 3,500 Cr via QIP in Q3 FY25 to fund equity requirements.
Operational Drivers
Raw Materials
Natural Gas and RLNG (Regasified Liquefied Natural Gas) are the primary fuel sources, with RLNG sales and thermal generation accounting for 11.42% of turnover. Renewable energy (Wind and Solar) serves as the other major generation input.
Import Sources
Natural gas is sourced via international LNG markets. Operations are centered in Gujarat, Maharashtra, and Uttar Pradesh for distribution and generation.
Key Suppliers
Not specifically named, but the company utilizes long-term LNG contracts and has executed ISDA agreements with international counterparties to hedge price fluctuations linked to Brent indices.
Capacity Expansion
Current renewable capacity is 1.6 GW operational with a 3 GW pipeline under construction. Thermal capacity includes the 1,200 MW DGEN gas-based plant. Planned expansion includes 3 GW of pumped storage capacity.
Raw Material Costs
Fuel costs are subject to volatility in the LNG market. The company manages 'Take or Pay' obligations by selling merchant power and RLNG. Easing natural gas prices in H1 FY25 allowed the DGEN plant to increase PLF to 29% from 7% YoY.
Manufacturing Efficiency
DGEN plant PLF improved to 29% in H1 FY25. Distribution efficiency is high with nearly 100% collection efficiency in Ahmedabad, Gandhinagar, and Surat.
Logistics & Distribution
Distribution is the core business, with 60% of revenue derived from regulated T&D. The company serves over 4 million consumers directly.
Strategic Growth
Expected Growth Rate
4-5%
Growth Strategy
Growth is driven by a massive transition toward renewables (3 GW pipeline) and energy storage (3 GW pumped storage). The company is also expanding its distribution footprint through new licenses (DNHDD) and industrial regions (Dholera SIR), while leveraging a regulated 14-15.5% post-tax ROE model.
Products & Services
Electricity distribution to domestic, industrial, and commercial consumers; Thermal and Renewable power generation; RLNG (Regasified Liquefied Natural Gas) sales.
Brand Portfolio
Torrent Power
New Products/Services
Expansion into Pumped Hydro Storage (3 GW) and Green Hydrogen; newly commissioned 381 MWp solar capacity contributed to Q2 FY26 results.
Market Expansion
Targeting new distribution areas and inorganic generation capacity growth to support increasing demand in existing distribution regions.
Market Share & Ranking
Sole distribution licensee for Ahmedabad, Surat, Gandhinagar, and DNHDD; second licensee for Dahej SEZ and Dholera SIR.
Strategic Alliances
Joint Venture in DNHDD (51% shareholding); Energy Storage Facility Agreement executed with MSEDCL for pumped storage projects.
External Factors
Industry Trends
The industry is shifting toward decarbonization and firm dispatchable renewable energy. Torrent is positioning itself by pivoting from thermal-heavy to a mix of 4.6 GW+ renewables and storage to meet green energy mandates.
Competitive Landscape
Faces competition from 'Open Access' where industrial consumers buy power directly from the grid, and from other private utilities in second-licensee areas like Dholera.
Competitive Moat
Moat is built on 'perpetual' licenses in major urban centers and high operational efficiency (T&D losses as low as 0.4%). These regulated assets provide high barriers to entry and stable, predictable cash flows.
Macro Economic Sensitivity
Highly sensitive to national power demand, which supported higher PLFs for thermal assets. GDP growth drives the 4-5% demand growth in distribution circles.
Consumer Behavior
Industrial consumers in new regions are increasingly seeking direct grid access or self-sourcing, impacting the company's projected sales growth in those specific zones.
Geopolitical Risks
Global LNG price volatility, influenced by geopolitical events, directly impacts the viability of the 1,200 MW DGEN gas plant and merchant power margins.
Regulatory & Governance
Industry Regulations
MoP draft guidelines require 50% de-recognition of regulatory assets if not approved within 3 years, and 100% if not approved within 5 years, posing a risk to the INR 3,157 Cr recognized regulatory claim.
Environmental Compliance
Focus on ESG to enhance stakeholder confidence for market borrowings. High environmental impact of thermal generation is being mitigated by a shift toward a 3 GW renewable pipeline.
Taxation Policy Impact
Effective tax rates are managed alongside regulated ROE; PBT to PAT conversion showed a 6.9% PAT margin on INR 27,268 Cr revenue in FY24.
Legal Contingencies
Unrecognized disputed regulatory claims stood at INR 953 Cr as of year-end. Recognized regulatory assets of INR 3,157 Cr are subject to commission approval and carrying cost allowances.
Risk Analysis
Key Uncertainties
Implementation risk for the 3 GW renewable pipeline and 3 GW pumped storage projects (total capex >INR 32,000 Cr) could lead to cost overruns or delayed cash generation.
Geographic Concentration Risk
Heavy concentration in Gujarat, particularly the Ahmedabad-Surat-Dahej belt, making the company sensitive to regional industrial policy and weather events (e.g., Asana cyclone impact).
Third Party Dependencies
Dependency on gas suppliers and transporters for the DGEN plant; 'Take or Pay' obligations create financial risk if power cannot be sold competitively.
Technology Obsolescence Risk
Transitioning toward smart grids and advanced storage (Pumped Hydro) to mitigate the intermittency of renewable energy.
Credit & Counterparty Risk
Strong counterparty mix for renewable PPAs and nearly 100% collection efficiency in licensed distribution areas mitigate credit risk.