Torrent Power’s profit dips in Q1 despite revenue growth
Torrent Power Limited reported a 3% year-on-year increase in consolidated revenue from operations for the quarter ended June 30, 2026, while higher financing costs linked to its ongoing capacity expansion weighed on overall profitability.
Revenue from operations rose to Rs 8,124 crore during Q1 FY2027. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 2% to Rs 1,619 crore from Rs 1,588 crore in the corresponding quarter of the previous year.
Total Comprehensive Income stood at Rs 639 crore, compared with Rs 739 crore in Q1 FY2026. The company attributed the decline primarily to higher finance costs arising from borrowings for investments in its under-construction portfolio.
Business performance
Torrent Power’s distribution business was the strongest-performing segment during the quarter, recording a 10% year-on-year increase in EBITDA.
The renewable energy business also posted growth, with EBITDA rising 6% on the back of higher plant load factors and contributions from projects commissioned during the previous year.
The gains were partly offset by weaker performance in the thermal power segment, where geopolitical disruptions affecting liquefied natural gas (LNG) supplies impacted operations.
Nabha Power acquisition
During the quarter, Torrent Power completed the acquisition of Nabha Power Limited on June 25, 2026, for Rs 3,632.35 crore.
The company acquired 100% of the equity shares and convertible instruments of Nabha Power from L&T Power Development Limited, a wholly owned subsidiary of Larsen & Toubro Limited.
Nabha Power owns and operates a 2×700 MW supercritical coal-based thermal power plant in Punjab, with power supplied under long-term Power Purchase Agreements (PPAs) with Punjab State Power Corporation Limited (PSPCL). According to the company, the acquisition expands its generation portfolio and strengthens its presence in northern India.
Capacity expansion
Torrent Power’s installed generation capacity currently stands at 6.6 GWp, comprising 2.7 GW of gas-based capacity, 2.1 GWp of renewable energy capacity and 1.8 GW of coal-based capacity.
The company is also developing around 4.2 GWp of renewable energy projects, 3 GW of pumped storage capacity and 1.6 GW of coal-based generation capacity.
Including projects under development, Torrent Power’s total generation capacity stands at around 12.3 GWp, while its pumped storage portfolio totals 3 GW.
Distribution business
Torrent Power supplies electricity to around 4.29 million consumers and distributes nearly 31 billion units annually across Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; the Union Territory of Dadra and Nagar Haveli and Daman and Diu; Bhiwandi, Shil, Mumbai and Kalwa in Maharashtra; and Agra in Uttar Pradesh.
The company said its licensed distribution areas in Gujarat continue to record the country’s lowest distribution losses and best reliability indices.
