Company Overview

Torrent Power Limited reported its consolidated financial results for FY 2025-26 with revenue of ₹28,966 crore and profit after tax of ₹2,469 crore. The company declared a total dividend of ₹20 per share, comprising interim dividend of ₹15 (already paid) and final dividend of ₹5 (subject to shareholder approval at the 22nd AGM scheduled for August 3, 2026).

Financial Performance

Revenue & Profitability: Consolidated revenue showed marginal decline of 1% YoY from ₹29,165 crore in FY25, while PAT decreased 19% primarily due to normalized tax expenses compared to FY25 which benefited from reversal of deferred tax liabilities of ₹637 crore. EBITDA grew 1% to ₹5,864 crore with margin improvement to 19.13% from 18.20% in FY25.

Capital Structure: Borrowings increased significantly to ₹13,739 crore (up ₹5,242 crore YoY) to fund capacity expansion, resulting in debt-to-equity ratio of 0.67 (0.46 in FY25). The company maintained strong credit ratings of CRISIL AA+/Stable and IND AA+/Stable for long-term borrowings.

Liquidity & Cash Flow: Closing liquidity improved to ₹2,347 crore (up ₹1,103 crore) supported by net cash from operations of ₹4,627 crore. Capital expenditure surged to ₹8,681 crore (>95% YoY growth) primarily for renewable projects.

Operational Highlights

Generation Capacity: Total operational capacity reached ~5.1 GW comprising 3,092 MW thermal (362 MW coal-based, 2,730 MW gas-based) and 2,002 MWp renewables (1,081 MWp solar, 921 MW wind). The company has ~4.0 GWp renewable pipeline under development.

Distribution Business: Serves ~4.3 million customers across licensed areas (2,050 sq km in Gujarat and UT of Dadra & Nagar Haveli and Daman & Diu) and franchised areas (1,007 sq km). Distribution losses were 2.33% in licensed areas and 10.63% in franchised areas with 24x7 power availability.

Regulatory Assets: Recognized regulatory assets of ₹2,348 crore with additional ₹1,053 crore under dispute, primarily carrying costs.

Strategic Initiatives & Expansion

Acquisitions: Completed acquisition of Newzone Group for thermal project implementation and signed agreement to acquire Nabha Power Limited (1,400 MW coal-based plant) from L&T for ₹3,661 crore enterprise value.

Project Development:

  • 1,600 MW ultra-supercritical coal project in Madhya Pradesh with PPA at ₹5.829/kWh
  • 3 GW pumped storage portfolio under construction in Maharashtra and Uttar Pradesh with planned investment of ~₹14,000 crore
  • 1,500 MW Solapur transmission project for renewable evacuation, expected commissioning in H1 FY27
  • Commissioned first green hydrogen plant at Gorakhpur (72 tonnes TPA capacity)

Renewable Expansion: Added 256 MW solar capacity, secured 300 MW wind project under SECI's Wind Tranche-XVIII at ₹3.97/unit, and 250 MW FDRE project from own DISCOM at ₹4.87/kWh. Target of 10 GW renewable capacity by 2030.

Subsidiaries & Corporate Structure

The group consists of Torrent Power Limited and 70+ subsidiaries engaged in power generation, transmission, distribution, and renewables. Material subsidiaries include Torrent Power Grid Limited (90% ownership), Torrent Pipavav Generation Limited (95% ownership), and Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation Limited (51% ownership).

ESG & Sustainability

ESG Performance: GHG emission intensity (Scope 1 & 2) at ~0.16 tCO2 e/GJ, clean energy share ~82%, waste diverted from landfills 99.75%, and CSR spend of ~₹83 crore benefiting >1.8 lakh people.

Assurance: Grant Thornton provided reasonable assurance on select sustainability metrics and limited assurance on GRI disclosures in the integrated annual report.

Governance: Board composition includes 9 Directors (56% independent) with 22% women representation. Maintained ISO certifications including 9001, 14001, 45001, 50001, 55001, and 27001 across various units.

Risk Factors

Operational Risks: LNG price volatility affecting 1,567 MW merchant capacity, environmental compliance requirements for AMGEN plant (must meet emission norms by December 2030), land acquisition challenges for wind projects, and ISTS connectivity constraints.

Financial Risks: Foreign currency exposure (EURO denominated payables of ₹496 crore), interest rate risk on ₹8,545 crore floating rate borrowings, and regulatory asset recovery timeline.

Outlook

Torrent Power continues to focus on thermal capacity expansion, renewable growth, pumped storage, and green hydrogen initiatives. The company is well-positioned to capitalize on energy transition opportunities while maintaining strong operational performance in its distribution business. Future investments will be funded through debt and internal accruals while maintaining prudent capital structure.