Torrent Power Ltd

- 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.

- 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.

- 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).

- 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.

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).