Torrent Power Limited has received credit rating affirmation and assignment from India Ratings and Research, strengthening its position in the power sector. The rating agency has taken comprehensive rating actions on the company's debt instruments, reflecting its strong operational performance and strategic expansion plans.

Rating Actions and Instrument Details

India Ratings and Research has affirmed the long-term credit rating of existing non-convertible debentures amounting to ₹1875 crore at IND AA+/Stable and assigned the same rating to proposed NCDs worth ₹2000 crore. The rating agency has also affirmed the short-term commercial paper rating at IND A1+.

Strong Financial Performance and Credit Metrics

The ratings reflect Torrent Power's robust financial position, with EBITDA remaining stable at ₹29.90 billion in 1HFY26 compared to ₹30.70 billion in 1HFY25. The company's consolidated net leverage improved significantly to 1.6x during 1HFY26 from 1.9x in 1HFY25, supported by increased EBITDA generation from the renewable energy segment following the commissioning of 544MW capacity during FY25.

Operational Excellence in Distribution Business

Torrent Power's distribution business continues to demonstrate exceptional operational performance with low aggregate technical and commercial (AT&C) losses across its licensed areas. The company's distribution licensee areas showed impressive efficiency levels during 1HFY26.

Distribution Licensee Performance (1HFY26)

The distribution franchise areas also showed improving trends, with Bhiwandi at 10.25%, Agra at 11.40%, and SMK at 24.00%, all showing gradual improvement in operational efficiency.

Ambitious Expansion Portfolio

Torrent Power has outlined an extensive expansion plan with an estimated capex of ₹650-700 billion till FY31-FY32, to be funded through a debt-equity mix of 75:25. The company's diversified under-construction portfolio includes multiple strategic projects.

Major Projects Under Development

The renewable energy projects are contracted under long-term PPAs with reputable counterparties including SECI and REMCL. The pumped storage project has been contracted with MSEDCL for 40 years with an availability-based tolling tariff of ₹8.50 million/MW.

Regulated Business Model Strength

The company's ratings benefit from its regulated cost-plus model in distribution licensee business and generation assets, allowing it to generate 14%-16% post-tax return on regulated equity. The transmission and distribution segment contributed 55%-60% to EBITDA in FY25, providing stable cash flow generation.

Torrent Power's liquidity position remains adequate with cash and cash equivalents of ₹19.10 billion at 1HFY26, along with fund-based working capital limits of ₹15.05 billion. The company's cash flow from operations improved to ₹25.20 billion during 1HFY26, driven by reduction in regulatory assets accumulation.

Rating Outlook and Sensitivities

The stable outlook reflects India Ratings' expectation of successful execution of the under-construction portfolio and maintained operational efficiency. Positive rating action could result from successful commissioning of pipeline projects and improved business risk profile, while negative action could stem from operational performance deterioration or higher-than-expected debt-funded capex leading to operational debt/EBITDA exceeding 4.0x on a sustained basis.

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.