Any current/future new fundraising through debt or equity?

Torrent Power is currently maintaining financial discipline with comfortable leverage ratios (net debt-to-equity at 0.40 and net debt-to-EBITDA at 1.41 as of March '25). New projects are typically financed with a 70:30 or 75:25 debt-to-equity ratio. The company has an active investment plan in renewable, pump storage, and coal projects but is mindful to keep debt and financial metrics under control. There is no explicit mention of immediate new fundraising through debt or equity in the transcript. Overall, while growth and capex are ongoing, the company focuses on maintaining comfortable lever

Any current/future capex/capital investment/strategic investment?

Cumulative capex in first 9 months of FY '26: - Licensee and franchisee: ~INR 1,100 crores - Transmission (coal project): ~INR 400 crores - Pumped Storage Project (PSP): ~INR 300 crores - Renewable energy: ~INR 3,100 crores (noted pickup in Q3 capex INR 1,750 crores) No specific capex target given for entire FY '26; Q3 run rate expected to continue. Renewable commissioning target: 1.2 to 1.5 GW in FY '27, similar pace in following years. Pipeline includes 4 GW renewable, 3 GW pumped storage, 1.6 GW coal, and transmission projects at Khavda and Solapur. Focus on maintaining financial di

Future growth expectations in sales/revenue/volumes?

Power demand is expected to grow inline with GDP at around 5-6% next year after a current aberration due to extended monsoons and high base last year (Page 6). Renewable capacity addition will pick up with commissioning of about 1.2 to 1.5 gigawatt in FY 2027 and similar pace anticipated for following years (Page 5, 8). The company aims to reach 10 gigawatts of renewable capacity, actively bidding for projects with a threshold IRR and locking in capacities when commercials are favorable (Page 8). Distribution profitability and revenues are supported by increased capitalization and regulated re

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Torrent Power LtdQ4 FY27Power

Torrent Power Ltd Q4 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,466P/E: 27.7Market Cap: ₹87.5K CrSector: Power

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Power demand is expected to grow inline with GDP at around 5-6% next year after a current aberration due to extended monsoons and high base last year (Page 6).
→Renewable capacity addition will pick up with commissioning of about 1.2 to 1.5 gigawatt in FY 2027 and similar pace anticipated for following years (Page 5, 8).
→The company aims to reach 10 gigawatts of renewable capacity, actively bidding for projects with a threshold IRR and locking in capacities when commercials are favorable (Page 8).
→Distribution profitability and revenues are supported by increased capitalization and regulated returns, with an ROCE increase from 14% to 15.5% (Pages 6, 7).
→No direct comment on short-term gas tender opportunities or future bidding beyond current pipeline (Page 15).

Margin guidance

Category 3

- Torrent Power expects growth driven by commissioning of ~1.2-1.5 GW renewable capacity annually over the next two years, supporting revenue and profit. - Thermal generation contribution improved due to favorable regulatory orders and LNG/merchant sales. - Distribution business profits are supported by improved T&D losses, higher asset capitalization, and increased ROE/ROCE (from 14% to 15.5%) as per new MYT regulations. - The company aims for an incremental 150 bps ROE by achieving operational efficiency milestones. - Breakeven expected at SMK distribution franchise by FY '27, further improving profitability. - LNG supply contracts secured for 10 years from 2027, supporting stable fuel costs and margins. - Capital expenditure in renewables is accelerating, indicating capacity expansion and future earnings growth. - Financial discipline maintained with comfortable leverage ratios (net debt to equity ~0.4). Overall, earnings growth is expected via capacity addition, regulatory benefits, operational efficiencies, and higher returns on capital employed.

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Fundraise plans

Yes

→Torrent Power is currently maintaining financial discipline with comfortable leverage ratios (net debt-to-equity at 0.40 and net debt-to-EBITDA at 1.41 as of March '25).
→New projects are typically financed with a 70:30 or 75:25 debt-to-equity ratio.
→The company has an active investment plan in renewable, pump storage, and coal projects but is mindful to keep debt and financial metrics under control.
→There is no explicit mention of immediate new fundraising through debt or equity in the transcript.
→Overall, while growth and capex are ongoing, the company focuses on maintaining comfortable leverage and financial health before considering any new fundraising.

Order book

The document does not explicitly mention a current or expected order book or pending orders for Torrent Power Limited. However, related information on project pipelines and contracts includes: - Renewable energy pipeline increased by 500 MW during the quarter. - 1.6 GW thermal project power purchase agreement signed with MP Power Management Company Limited. - Contracts awarded for balance of plant & machinery for the thermal project. - Pipeline projects as of December 31, 2025, include: - 4 GW renewable capacity - 3 GW pump storage capacity - 1.6 GW coal-based capacity - 2 transmission projects (Khavda and Solapur) - Execution plans discussed for multiple renewable projects like SECI XV, TPL-L project, and REMCL. - No specific mention of pending tenders or orders beyond these pipelines. - Discussions ongoing for potential extensions or fresh bids (e.g., Bhiwandi distribution franchise).

Capex plans

Yes

→Cumulative capex in first 9 months of FY '26:
→ - Licensee and franchisee: ~INR 1,100 crores
→ - Transmission (coal project): ~INR 400 crores
→ - Pumped Storage Project (PSP): ~INR 300 crores
→ - Renewable energy: ~INR 3,100 crores (noted pickup in Q3 capex INR 1,750 crores)
→No specific capex target given for entire FY '26; Q3 run rate expected to continue.
→Renewable commissioning target: 1.2 to 1.5 GW in FY '27, similar pace in following years.
→Pipeline includes 4 GW renewable, 3 GW pumped storage, 1.6 GW coal, and transmission projects at Khavda and Solapur.
→Focus on maintaining financial discipline with comfortable leverage (net debt-to-equity 0.40 as of March '25).
→Investment financed at typical debt-equity ratios of 70-75% debt.
→Awaiting clarity on capital investment for parallel licensing; too early to comment.

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