Torrent Power Limited has received favorable credit ratings from India Ratings and Research, with the agency assigning IND AA+/Stable rating to proposed non-convertible debentures worth ₹4000 crore and reaffirming the same rating on existing NCDs of ₹3700 crore. The rating agency also affirmed the short-term commercial paper rating at IND A1+.

Rating Details and Rationale

The ratings are based on Torrent Power's regulated cost-plus model in its distribution licensee business and generation assets, which allows the company to generate 14%-16% post-tax return on regulated equity. The company's strong operating performance in distribution licensee and distribution franchise areas contributes over 50% to total EBITDA from its distribution business.

Financial Performance and Credit Metrics

Torrent Power's financial position shows healthy credit metrics with net leverage declining to 1.6x during 1HFY26, supported by increased EBITDA generation from the renewable energy segment following the commissioning of 544MW capacity during FY25. The company's EBITDA remained stable at ₹43.9 billion in 9MFY26 compared to ₹41.8 billion in 9MFY25.

Operational Highlights

The company operates a diversified portfolio with 1.95GW of renewable energy capacity in 9MFY26, comprising 0.92GW wind and 1.03GW solar capacity. Torrent Power maintains distribution licenses in key regions including Ahmedabad, Gandhinagar, Surat, Dahej, Dholera, and Dadra and Nagar Haveli and Daman and Diu, with aggregate technical and commercial losses remaining below normative levels.

Expansion Plans and Strategic Initiatives

Torrent Power has announced the acquisition of Nabha Power Limited, which operates a 1,400MW coal-based thermal power plant. The acquisition, primarily debt-funded, will increase the company's debt level by ₹65-70 billion. Nabha Power generated EBITDA of ₹7.5 billion during FY25.

The company has a robust under-construction portfolio of 4.3GW renewable energy projects at various development stages, with total project cost of ₹279 billion. Additionally, Torrent Power has secured contracts for a 1.6GW coal-based thermal power plant in Madhya Pradesh and a 3GW pumped storage hydro project in Maharashtra.

Rating Outlook

India Ratings expects the company's EBITDA to increase substantially over the medium term as the 4.3GW renewable capacity becomes operational over the next two-to-three years. The agency notes that while leverage may temporarily increase due to large debt-funded capex plans, it should stabilize at satisfactory levels as assets become operational and generate full-year EBITDA.

Torrent Power Limited has secured regulatory approval from the Competition Commission of India (CCI) for its strategic acquisition of Nabha Power Limited. The approval marks a significant milestone in the company's expansion plans within the power sector.

CCI Approval Details

The Competition Commission of India communicated its approval on April 07, 2026 at 06:14 pm for the acquisition transaction. The regulatory body has cleared Torrent Power's proposal to acquire 100% of the equity stake and convertible instruments in Nabha Power Limited.

Transaction Structure

The acquisition involves the complete takeover of Nabha Power Limited from L&T Power Development Limited. Torrent Power will acquire both the equity stake and convertible instruments, giving it full control over the target company's operations and assets.

Regulatory Timeline

This approval follows Torrent Power's earlier communication to stock exchanges dated February 16, 2026, where the company had initially disclosed details about the proposed acquisition. The CCI has indicated that the formal order regarding this approval will follow the communication.

Market Disclosure

Torrent Power has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company informed both BSE Limited and National Stock Exchange of India Limited about the CCI approval through official communication dated April 08, 2026.