Torrent Power Limited has received comprehensive credit rating actions from CRISIL Ratings, reinforcing its strong position in the power sector. The rating agency has reaffirmed existing ratings and assigned new ratings to proposed debt instruments, reflecting the company's robust operational performance and strategic expansion capabilities.

CRISIL Rating Actions and Instrument Details

CRISIL Ratings has reaffirmed the long-term credit rating of existing non-convertible debentures and bank loan facilities amounting to ₹3140 crore at CRISIL AA+/Stable and assigned the same rating to proposed NCDs worth ₹2000 crore. The rating agency has also reaffirmed short-term bank loan facilities and commercial paper at CRISIL A1+.

Strong Financial Performance and Improved Leverage

The ratings reflect Torrent Power's strong financial risk profile, with net debt to EBITDA ratio improving significantly to 1.40 times as of March 31, 2025, from 2.20 times in the previous year. This improvement was driven by increased EBITDA to ₹5,436 crore from ₹4,632 crore in fiscal 2024, supported by robust power demand and strategic debt reduction.

Exceptional Distribution Business Performance

Torrent Power's distribution business continues to demonstrate outstanding operational efficiency with industry-leading low transmission and distribution (T&D) losses across its licensed and franchise areas. The company serves over 4.20 million consumers across diverse segments.

T&D Loss Performance (FY25)

The franchise areas showed significant improvement, particularly SMK which reduced T&D losses from 44.90% at takeover in fiscal 2021 to 28.00% in fiscal 2025.

Ambitious Expansion Portfolio and Capital Allocation

Torrent Power has outlined an extensive expansion plan with estimated capex exceeding ₹60,000 crore during fiscal 2026-2032, to be funded through a debt-equity ratio of 70:30 or 75:25. The diversified portfolio includes strategic projects across renewable energy, pumped storage, and thermal power.

Major Projects Under Development

The renewable projects benefit from long-term PPAs with reputable counterparties, while the pumped storage project has a 40-year Energy Storage Facility Agreement with MSEDCL providing strong revenue visibility.

Regulated Business Model and ESG Excellence

The company's ratings benefit from its regulated cost-plus model in distribution and generation assets, allowing 14-15.50% post-tax return on equity. Regulated businesses account for approximately 70% of EBITDA, providing stable cash flow generation. The company demonstrates strong ESG credentials with renewable capacity representing over 61% of total generation capacity.

ESG Performance Highlights

Rating Outlook and Liquidity Position

The stable outlook reflects CRISIL's expectation of continued strong business performance and prudent capital allocation. The company maintains strong liquidity with expected annual cash accrual of ₹3,200-3,700 crore in fiscals 2026-2028, comfortably covering term debt obligations of ₹1,300-1,700 crore yearly.

Torrent Power's liquidity position remains robust with cash balance of ₹1,903 crore as of September 30, 2025, and unutilized fund-based limits of ₹1,500 crore. While net leverage is expected to increase with the sizeable capex program, potentially peaking above 4.00 times in fiscals 2029-2030, enhanced cash generation from newly commissioned capacity should support moderation thereafter.

Torrent Power Ltd. recorded a substantial block trade on the National Stock Exchange (NSE) worth Rs. 38.14 crores, highlighting significant institutional trading activity in the power sector company's shares.

Block Trade Details

The large-scale transaction involved key parameters that demonstrate the magnitude of institutional interest:

Market Implications

Block trades of this magnitude typically represent institutional transactions, including mutual funds, insurance companies, foreign institutional investors, or other large stakeholders. Such transactions are executed outside the regular market to avoid impacting the stock's market price during normal trading hours.

The execution price of Rs. 1403.50 per share for approximately 271,740 shares indicates substantial capital movement in Torrent Power's stock. Block deals often signal portfolio restructuring activities by institutional investors or strategic stake changes by major shareholders.

Transaction Significance

The Rs. 38.14 crore transaction value represents a considerable single-day institutional activity for the company. Such block trades provide insights into institutional sentiment and can indicate confidence levels among large investors regarding the company's prospects and valuation at current market levels.