Torrent Power Q1FY27 EBITDA rises 2% to ₹1,619 Cr, TCI drops 14%
Torrent Power's Q1FY27 results show a 2% rise in EBITDA to ₹1,619 crore, driven by distribution and renewable segments. However, TCI dropped 14% to ₹639 crore due to increased finance costs from the Nabha Power acquisition. Thermal PLFs fell excluding Nabha, while renewable PLFs improved.
*this image is generated using AI for illustrative purposes only.
Torrent Power reported a consolidated EBITDA of ₹1,619 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 2% year-on-year increase from ₹1,588 crore in Q1FY26. Despite the operational gain, Total Comprehensive Income (TCI) attributable to owners declined 14% to ₹639 crore from ₹739 crore in the corresponding period last year. The profit contraction was primarily driven by higher finance costs associated with increased borrowings for strategic investments, including the recent acquisition of Nabha Power Limited (NPL), which offset gains in its distribution and renewable energy segments.
The Board of Directors approved the unaudited financial results on August 03, 2026, pursuant to Regulations 30, 33, and 52(7) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Price Waterhouse Chartered Accountants LLP, the statutory auditor, issued a limited review report confirming that nothing came to their attention to suggest the statements were materially misstated. Consolidated revenue from operations grew 3% to ₹8,124 crore from ₹7,906 crore in Q1FY26, supported by the inclusion of NPL’s operations post-acquisition on June 25, 2026.
Segmental Performance Drivers
Torrent Power attributed its EBITDA growth to strong contributions from its Distribution and Renewable Energy businesses. The distribution segment benefited from improved operational performance across its licensed areas in Gujarat, Maharashtra, Uttar Pradesh, and DNH & DD. The renewable portfolio saw gains driven by higher plant load factors (PLF), with wind PLF rising to 33.3% from 31.6% and solar PLF increasing to 25.9% from 22.0% in Q1FY26.
Conversely, the thermal power segment faced headwinds due to geopolitical disruptions affecting LNG supplies, impacting overall thermal plant performance. Excluding Nabha, the thermal PLF dropped to 26.3% from 38.7% in Q1FY26. Key thermal units like SUGEN and UNOSUGEN saw significant declines in utilization, with SUGEN dropping to 27.0% from 43.4%. However, AMGEN maintained robust performance at 78.9%. The following table summarizes the key consolidated financial metrics:
| Metric | Q1FY27 (₹ Cr) | Q1FY26 (₹ Cr) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 8,124.00 | 7,906.00 | +3.0% |
| EBITDA | 1,619.00 | 1,588.00 | +2.0% |
| Profit Before Tax | 925.00 | 985.00 | -6.0% |
| Total Comprehensive Income | 639.00 | 739.00 | -14.0% |
Impact of Nabha Power Acquisition
The company completed the acquisition of 100% equity shares of Nabha Power Limited (NPL) from L&T Power Development Limited on June 25, 2026, for a consideration of ₹3,632.35 crore. NPL operates a 2x700 MW coal-based supercritical thermal power plant in Punjab. The integration of NPL has significantly altered the consolidated balance sheet, increasing total assets to ₹56,777.17 crore from ₹45,193.28 crore at the end of FY26. The financing required for this acquisition contributed to a sharp rise in leverage, with the consolidated debt-equity ratio jumping from 0.44 to 0.97 year-on-year. Finance costs rose to ₹293 crore from ₹213 crore in Q1FY26.
Capacity and Pipeline Overview
As of June 30, 2026, Torrent Power’s installed capacity stands at 6,564 MWp, comprising 2,730 MW of gas, 1,762 MW of coal (including Nabha), 1,092 MWp of solar, and 980 MW of wind. The company targets growing its operational capacity to ~12.3 GWp, backed by a robust renewable pipeline of ~5,782 MWp. This includes 2,146 MWp of wind and 2,017 MWp of solar projects under development. Additionally, the company is advancing a 3 GW Pumped Storage Hydro project in Maharashtra, tied up with MSEDCL for 2,000 MW, with an expected commissioning date of October 2028.
What the Numbers Show
The divergence between top-line growth and bottom-line pressure highlights the transitional nature of Torrent Power’s expansion strategy. While operational efficiency improved—evidenced by the 2% EBITDA growth despite geopolitical supply shocks—the capital-intensive nature of the NPL acquisition is immediately visible in the income statement. The 14% drop in TCI, despite rising revenue, signals that interest burdens are currently outpacing operational margin expansions. Investors should monitor whether the scale benefits from NPL’s 1.4 GW capacity will eventually offset the elevated cost of debt as the company integrates the asset fully into its portfolio.
Historical Stock Returns for Torrent Power
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.53% | -2.96% | -1.64% | +7.26% | +6.24% | +199.03% |
How long will it take for the Nabha Power acquisition to achieve debt payback and normalize the elevated debt-equity ratio of 0.97?
What specific hedging strategies is Torrent Power employing to mitigate future LNG supply disruptions affecting its thermal segment's PLF?
Will the company need to raise additional equity capital to fund the 3 GW Pumped Storage Hydro project, or will it rely entirely on debt financing?
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