Torrent Power has announced a major acquisition that will significantly expand its thermal generation footprint through the purchase of Nabha Power Limited from Larsen & Toubro's subsidiary. The transaction, valued at ₹6,889 crores, represents a strategic move to strengthen the company's position in India's power sector while entering the northern regional market.

Acquisition Details

The Securities Purchase Agreement involves acquiring 100% equity stake and convertible instruments in Nabha Power Limited from L&T Power Development Limited, a wholly owned subsidiary of Larsen & Toubro. The transaction is subject to requisite regulatory approvals and customary closing conditions.

Nabha Power Limited Performance

Nabha Power Limited operates a high-performing thermal power asset with strong financial metrics and operational excellence. The supercritical plant, built on advanced Japanese technology, demonstrates exceptional reliability and efficiency standards.

The 1,400 MW facility, comprising 2 x 700 MW units, ranks 2nd among all thermal power plants above 500 MW in India. Located at Rajpura in Patiala district, Punjab, the plant maintains sustained availability levels above 90% and operates under a 25-year Power Purchase Agreement established through Case II Competitive Bidding Guidelines.

Strategic Impact and Capacity Expansion

Upon completion of the acquisition, Torrent Power's operational capacity will increase from approximately 5 GW to 6.4 GW. The transaction provides immediate access to institutional expertise and decade-long technical capabilities developed through exceptional implementation and operational excellence.

Key Strategic Benefits:

• Entry into high-growth northern India power market
• Addition of best-in-class operating asset with fully contracted cash flows
• Value accretive transaction from day one
• Enhanced portfolio diversification without development risk
• Platform for potential capacity expansion using existing infrastructure

Fuel Supply and Operational Framework

The power plant operates with comprehensive fuel supply arrangements ensuring operational stability. Long-term Fuel Supply Agreements are established with SECL for 2.775 million MT and NCL for 2.464 million MT, along with mechanisms for alternate coal procurement to address supply shortfalls. The plant's equipment design enables blending of domestic and imported coal, providing operational and fuel flexibility.

Commissioned in 2014, the facility was developed under Government of India's competitive bidding framework and operates under a 25-year Power Purchase Agreement. The strategic location in a power-deficit region supports potential ancillary revenue streams while existing infrastructure allows seamless capacity expansion for future growth opportunities.

Management Commentary

Samir Mehta, Chairman of Torrent Power, emphasized the acquisition's strategic value: "The acquisition marks Torrent's entry into the high-growth power market of northern India. Upon completion, NPL will add a high-quality, best-in-class and well-established operating asset to our portfolio supported by fully contracted cash flows and a strong operational track record."

S N Subrahmanyam, Chairman & Managing Director of L&T, stated: "The divestment of NPL aligns with L&T's strategic objective of unlocking value to strengthen our robust core businesses. This move positions us to create long term value for all our stakeholders — business partners, shareholders and employees."

Torrent Power Limited announced its quarterly results for the quarter ended December 31, 2025, delivering exceptional financial performance with significant growth across key metrics. The Board of Directors approved the unaudited financial results alongside strategic decisions including dividend declaration and fundraising initiatives. The company also released a comprehensive investor presentation outlining its operational performance and future growth strategy.

Consolidated Financial Performance

The company's consolidated results for Q3FY26 demonstrated robust operational efficiency with substantial improvements in profitability metrics.

Standalone Results Highlight Strong Growth

The standalone financial results showcased even more impressive growth metrics, reflecting the company's core operational strength.

Nine-Month Performance Analysis

The year-to-date performance for the nine months ended December 31, 2025, demonstrated consistent operational improvements across both standalone and consolidated metrics.

Board Decisions and Strategic Initiatives

The Board of Directors, in their meeting held on February 10, 2026, approved several key decisions reflecting strong financial position and growth strategy.

Operational Excellence and Growth Strategy

The company operates as an integrated power utility with a total generation capacity of 5,039 MWp, positioning itself for significant expansion. The operational capacity is estimated to grow from approximately 5.0 GWp to 10.6 GWp backed by robust renewable capacity addition. The company maintains distribution losses of just 2.34% for licensed power distribution areas with power availability of 99.9%, demonstrating operational excellence.

Future Growth Pipeline

Torrent Power has outlined an ambitious expansion plan with projects under development totaling 5,604 MWp. The company is developing a 1,600 MW ultra-supercritical coal-based power project in Madhya Pradesh with an estimated cost of ₹22,000 crore. Additionally, the company is pursuing pumped storage hydro projects with 3 GW under development in Maharashtra and a total planned capacity of 8.4 GW across Maharashtra and Uttar Pradesh.

The renewable energy pipeline includes multiple projects across wind and solar technologies with various off-takers including SECI, MSEDCL, and merchant sales. The company has also been awarded transmission projects for power evacuation, strengthening its integrated utility model.