Torrent Power Limited announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The Board approved a final dividend of ₹5.00 per equity share, taking the total dividend for FY 2025-26 to ₹20.00 per share. Additionally, the Board sanctioned the raising of funds up to ₹10,000 Crore through Non-Convertible Debentures (NCDs) via Private Placement and re-appointed two Independent Directors.

Consolidated Financial Performance

For the quarter ended March 31, 2026, Torrent Power reported Q4 EBITDA of ₹1,220 Crs compared to ₹1,245 Crs in the same period last year. For the full year, EBITDA stood at ₹5,864 Crs versus ₹5,795 Crs in the prior year. Consolidated revenue from operations for Q4 stood at ₹6,406 Crs versus ₹6,456 Crs in the year-ago period, while full-year revenue came in at ₹28,966 Crs compared to ₹29,165 Crs. Total Comprehensive Income (TCI) for Q4 was ₹408 Crs against ₹1,085 Crs in the corresponding quarter of the previous year, and for the full year stood at ₹2,514 Crs versus ₹3,059 Crs. The company noted that adjusting for a one-time, non-cash reversal of deferred tax liabilities of ₹637 Crs in FY 2024-25, TCI for the year improved by ₹92 Crs, driven by better operational performance in the licensed and franchised distribution businesses and the Renewable Energy segment, partly offset by higher interest and depreciation costs, lower contribution from the gas-based generation business, and the absence of gains on sale of non-current investments recorded in FY 2024-25.

The table below summarises key consolidated financial metrics:

The company maintains a strong balance sheet with a Net Debt:Equity ratio of 0.67 and a Net Debt:EBITDA ratio of 2.06 as on March 31, 2026, positioning it among the best financial ratios in the private power sector.

Management Commentary

Commenting on the performance, Mr. Jinal Mehta, Vice Chairman and Managing Director, said that FY26 marks a milestone as the company prepares for the next phase of sustainable growth. He highlighted the commitment of over ₹30,000 Crore towards enhancing thermal capacity by 3 GW, including initiating construction of a new 1,600 MW power project in Madhya Pradesh and the strategic acquisition of the 1,400 MW Nabha Power project. He also noted the proactive strengthening of the gas-based portfolio through long-term LNG partnerships with global players including BP and JERA. On distribution, he highlighted that the company achieved distribution losses of 2.33%—the lowest in the country—and was ranked number 1 in national rankings among 65 DISCOMs. He expressed confidence in delivering sustainable growth backed by a diversified energy platform spanning renewables, thermal, storage solutions, and distribution.

Operational Highlights

The company reported an installed generation capacity of 5,094 MWp as of March 31, 2026, comprising Gas (2,730 MW), Renewable (2,002 MWp), and Coal (362 MW). Additionally, renewable projects of approximately 3.96 GWp, Pumped Storage Capacity of 3 GW, and coal-based power capacity of 1.6 GW are under development. Including projects under development and acquisition, total generation and pumped storage capacity stands at approximately 12.05 GWp and 3 GW respectively. The Transmission & Distribution segment contributed 74% to the total segmental revenue of ₹33,591 Crore for FY26. The company distributes nearly 31 billion units to approximately 4.29 million customers across cities in Gujarat, Maharashtra, Uttar Pradesh, and the Union Territory of Dadra and Nagar Haveli and Daman and Diu. Distribution losses in licensed areas were recorded at 2.33% in FY26, with power availability at 99.9%.

Nabha Power Acquisition

On February 16, 2026, the company entered into a Share Purchase Agreement (SPA) with L&T Power Development Limited (L&TPDL), a wholly owned subsidiary of Larsen & Toubro Limited (L&T), for the purchase of 100% equity shares and convertible instruments of Nabha Power Limited (NPL) from L&TPDL for a consideration of ₹3,660.87 Crore, subject to closing adjustments. NPL operates a 2X700 MW coal-based Supercritical Thermal Power Plant located in Punjab, backed by 25-year long-term Power Purchase Agreements (PPAs) with Punjab State Power Corporation Limited.

Dividend and NCD Issuance

The Board recommended a final dividend of ₹5.00 per equity share on 50,39,03,543 equity shares of ₹10 each. Combined with the interim dividend of ₹15.00 per share paid during Q4 FY 2025-26, the total dividend for FY 2025-26 amounts to ₹20.00 per share. The final dividend, subject to shareholder approval at the Annual General Meeting, will be paid on or before September 02, 2026. The Board also approved the issuance of NCDs of up to ₹10,000 Crore in one or more tranches via Private Placement. The company confirmed no deviation in the utilisation of proceeds from its Series-14 NCD issuance of ₹2,000 Crore raised on March 09, 2026.

Governance and Re-appointments

The Board approved the re-appointment of two Non-Executive Independent Directors for second and final terms of five consecutive years each, subject to member approval.

Radhika Haribhakti, 68, brings over three decades of experience in Commercial and Investment Banking and has held leadership positions at Bank of America, JM Morgan Stanley, and DSP Merrill Lynch. Ketan Dalal, 69, is a veteran Chartered Accountant with 41 years of experience in taxation and corporate structuring, including mergers and acquisitions, and was formerly the Joint Head, Tax, All India and Managing Partner (West) at PwC India. Both directors have been affirmed as not debarred from holding office by any SEBI order or other authority.

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.