Any current/future new fundraising through debt or equity?

Torrent Power has a strong, under-leveraged balance sheet with ample room for further investment, indicating capacity for new fundraising if needed. For the Nabha Power acquisition (~INR6,900 crore enterprise value), the split is roughly INR3,400 crore debt and balance equity, with plans to raise around INR3,500 to INR4,000 crore for project funding. Management mentioned the power sector is in an investment phase with comfortable leverage ratios and room to take on more projects through debt if they meet return thresholds. Capex for FY27 is expected to be significantly higher than FY26, implyi

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

Torrent Power has a robust capex plan focused on renewable, coal, and pumped storage projects spanning the next 5 years. Renewable projects: 4 GW capacity with a capex of INR 28,000 crores. Coal-based projects: 1.6 GW capacity with a capex of approximately INR 23,000 crores. Pumped Storage Hydro (PSP): 3 GW capacity with planned capex of INR 14,000 crores. Ongoing annual distribution capex around INR 1,500 - 2,000 crores for 4-5 years. Total capex over 5 years approximates INR 80,000 crores (INR 15,000-20,000 crores annually). Active pursuit of thermal bidding opportunities in states. Current

Future growth expectations in sales/revenue/volumes?

Torrent Power is in an investment phase with strong capex plans across renewables, coal, and pump storage, indicating growth potential. Renewable capacity commissioning expected at 1.2 to 1.4 GW in the next year, contributing to volume growth. Distribution capex expected around INR 2,000 crores annually for next 4-5 years, supporting network expansion and sales growth. Gas-based power plants have tied up 50% long-term PPAs providing fixed-cost recovery and revenue stability. Merchant capacities leveraged for short-term pricing opportunities, expected to benefit once LNG price volatilit

Future growth expectations in earnings/operating earnings/profits/EPS?

Adjusted PBT for Q4 FY26 increased by 16% YoY to INR718 crores (excluding one-offs), indicating earnings growth potential. Return on Equity (ROE) regime has shifted to ROCE with performance-based incentives, potentially increasing effective ROE from 14% to around 15% or higher. Transmission & distribution segment expected to sustain stable returns aided by regulatory carrying costs and operational efficiencies. Growth in renewable segment capex (INR6,500 crores in FY26, expected to be higher in FY27) signals expansion and future earnings growth. Thermal and renewable capacity additions through

Current/ Expected Orderbook/ Pending Orders?

Renewable projects of 4 gigawatts are currently under implementation. Transmission project of Solapur is also under implementation. Further details of the pipeline projects are summarized in the latest investor presentation available on Torrent Power's website. The company has announced a capex plan including: - INR 28,000 crores for 4 GW of Renewable capacity. - INR 23,000 crores for 1.6 GW Coal capacity. - INR 14,000 crores for 3 GW Pump Storage capacity. Distribution capex is expected to continue at about INR 2,000 crores annually over the next 4-5 years. Investment plans indicate a t

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Torrent Power LtdQ1 FY26Power

Torrent Power Ltd Q1 FY26 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 2

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Torrent Power is in an investment phase with strong capex plans across renewables, coal, and pump storage, indicating growth potential.
→Renewable capacity commissioning expected at 1.2 to 1.4 GW in the next year, contributing to volume growth.
→Distribution capex expected around INR 2,000 crores annually for next 4-5 years, supporting network expansion and sales growth.
→Gas-based power plants have tied up 50% long-term PPAs providing fixed-cost recovery and revenue stability.
→Merchant capacities leveraged for short-term pricing opportunities, expected to benefit once LNG price volatility subsides.
→Power demand in India grows at approximately 6% CAGR historically, expected to continue, supporting volume growth.
→Thermal and renewable projects are expected to contribute new capacities by FY31-FY32, further boosting revenues.
→Comfortable leverage and strong balance sheet provide room for new investments enhancing future growth.

Margin guidance

Category 3

→Adjusted PBT for Q4 FY26 increased by 16% YoY to INR718 crores (excluding one-offs), indicating earnings growth potential.
→Return on Equity (ROE) regime has shifted to ROCE with performance-based incentives, potentially increasing effective ROE from 14% to around 15% or higher.
→Transmission & distribution segment expected to sustain stable returns aided by regulatory carrying costs and operational efficiencies.
→Growth in renewable segment capex (INR6,500 crores in FY26, expected to be higher in FY27) signals expansion and future earnings growth.
→Thermal and renewable capacity additions through FY31-FY32, with commissioning of 1.2-1.4 GW renewables next year.
→Merchant gas-based plants profits expected to improve after LNG price stabilization.
→Overall strong balance sheet and controlled leverage support incremental investments and earnings growth.

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Fundraise plans

Yes

→Torrent Power has a strong, under-leveraged balance sheet with ample room for further investment, indicating capacity for new fundraising if needed.
→For the Nabha Power acquisition (~INR6,900 crore enterprise value), the split is roughly INR3,400 crore debt and balance equity, with plans to raise around INR3,500 to INR4,000 crore for project funding.
→Management mentioned the power sector is in an investment phase with comfortable leverage ratios and room to take on more projects through debt if they meet return thresholds.
→Capex for FY27 is expected to be significantly higher than FY26, implying potential financing requirements.
→No explicit mention of an immediate equity raise, but the company remains open to leveraging balance sheet capacity for future investment opportunities.

Order book

→Renewable projects of 4 gigawatts are currently under implementation.
→Transmission project of Solapur is also under implementation.
→Further details of the pipeline projects are summarized in the latest investor presentation available on Torrent Power's website.
→The company has announced a capex plan including:
→ - INR 28,000 crores for 4 GW of Renewable capacity.
→ - INR 23,000 crores for 1.6 GW Coal capacity.
→ - INR 14,000 crores for 3 GW Pump Storage capacity.
→Distribution capex is expected to continue at about INR 2,000 crores annually over the next 4-5 years.
→Investment plans indicate a total capex of roughly INR 80,000 crores over 5 years.
→The company is actively looking at new thermal bidding opportunities in a couple of states.

Capex plans

Yes

→Torrent Power has a robust capex plan focused on renewable, coal, and pumped storage projects spanning the next 5 years.
→Renewable projects: 4 GW capacity with a capex of INR 28,000 crores.
→Coal-based projects: 1.6 GW capacity with a capex of approximately INR 23,000 crores.
→Pumped Storage Hydro (PSP): 3 GW capacity with planned capex of INR 14,000 crores.
→Ongoing annual distribution capex around INR 1,500 - 2,000 crores for 4-5 years.
→Total capex over 5 years approximates INR 80,000 crores (INR 15,000-20,000 crores annually).
→Active pursuit of thermal bidding opportunities in states.
→Current projects mainly in construction phase with key milestones achieved (e.g., environmental clearances, awards for packages).
→Nabha Power acquisition involved around INR 6,800 crores enterprise value with planned equity raising for funding.
→The balanced portfolio and strong balance sheet ensure capacity for incremental investments without stressing leverage.

How does Torrent Power Ltd rank vs peers in Power?

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