Torrent Power Ltd Q2 FY26 Earnings Analysis

- FY '26 revenue expected around INR 7,000 to 8,000 crores, slightly higher in FY '27 (Page 4). - Renewable capacity pipeline includes 3.1 GW renewable projects and 3 GW pumped storage, indicating growth in green energy segment (Page 3). - Capex in renewables planned to ramp up in H2 FY '26 after INR 350 crores spent in Q1; expected addition of 500 to 700 MW capacity progressively (Page 6). - Continuous acquisition strategy in thermal and renewable assets to support growth (Page 7). - Merchant market sales volumes are volatile, no precise volume guidance given; LNG and merchant sales impact revenue unpredictably (Page 7). - Interest in participating in new privatization tenders (e.g., UP DISCOM) anticipated to open new revenue streams (Page 7).

- Torrent Power’s reported PBT for Q1 FY'26 was INR 985 crores, down 25% YoY, primarily due to lower merchant gains. - Adjusted PBT declined by 14% to INR 1,044 crores compared to last year. - The company expects improvement in Q2 and Q3, driven by full utilization of the NVVN tender minimum guaranteed offtake (2.3 billion units). - Renewable energy capacity is set to grow; capex in Q1 was INR 350 crores for renewables, with planned ramp-up in H2 FY'26 to add 500-700 MW. - Pipeline includes 3.1 GW renewable projects and 3 GW pumped storage projects supporting future growth. - The company continues acquisitions in both renewable and coal-based thermal assets. - Distribution business shows improvement in operational parameters aiding stable earnings. - Merchant market earnings are unpredictable due to volatile LNG prices and demand. - Overall, growth in earnings and profits is expected from expanded renewable capacity and improved contract utilization.

- Q1 FY26 renewable capex stood at INR 350 crores; overall company capex in Q1 was INR 850 crores. - Renewable capex expected to ramp up significantly in H2 FY26 compared to H1. - Plans to commission 500 to 700 MW renewable capacity progressively during the remaining year. - Pipeline includes 3.1 GW of renewable projects and 3 GW of pumped storage projects under development. - Total pumped storage plant (PSP) capacity under development is 3 GW, with 2 GW tied-up under MSEDCL and 1 GW planned on a merchant basis at the same location. - Continuous strategic interest in thermal coal assets through development or acquisition, including participation in IBC (Insolvency and Bankruptcy Code) process. - Actively working on transmission projects at Khavda and Solapur. - Interested in participating in UP DISCOM privatization once government finalizes RFP.

The transcript in the provided pages does not mention any current or planned fundraising through debt or equity by Torrent Power Limited. Specifically: - There is no discussion or announcement related to new debt or equity fundraising during the Q1 FY '26 earnings call. - The management addresses capex plans and project developments but does not mention raising capital through debt or equity. - References to financial performance and capital expenditure focus on internal resources, QIP proceeds (mentioned only in passing for past context), and operational cash flows. - No plans for new fundraising initiatives are disclosed in the Q&A or management commentary. Hence, based on the transcript provided, there is no indication of current or upcoming fundraising via debt or equity.

- Torrent Power has a robust pipeline of projects as of Q1 FY '26. - Secured contract under SECI-XVIII tender for 300 MW merchant capacity at INR 3.97/unit. - Aggregate installed generation capacity is 4.9 GW (2.7 GW gas, 1.8 GW renewable, 362 MW coal). - Pipeline projects include: - 3.1 GW renewable projects - 3 GW pumped storage projects (PSP) - 2 transmission projects at Khavda and Solapur - PSP capacity under development totals 3 GW (2 GW tied up with MSEDCL, 1 GW planned on merchant basis). - Interested in potential DISCOM privatization in Uttar Pradesh; government finalizing RFP. - Actively participating in acquisitions in renewables and thermal coal assets. This represents Torrent Power's current and expected orderbook/pipeline.