L&T to sell Nabha Power to Torrent Power

Torrent Power Limited has signed a definitive agreement to acquire 100% equity stake and convertible instruments in Nabha Power Limited (NPL) from L&T Power Development Limited (L&T PDL), a wholly owned subsidiary of Larsen & Toubro (L&T), for an enterprise value of Rs 6,889 crore. The Securities Purchase Agreement (SPA) was executed on February 16, 2026. The transaction marks Torrent’s entry into the northern India power market.

The aggregate consideration for the equity and convertible instruments stands at Rs 3,660.87 crore, subject to customary closing adjustments. Upon completion, NPL will become a wholly owned subsidiary of Torrent. The deal is expected to close on or before June 30, 2026, subject to regulatory approvals and satisfaction of agreed conditions.

NPL owns and operates a 1,400 MW (2 x 700 MW) supercritical coal-based thermal power plant at Rajpura in Patiala district, Punjab. The plant was commissioned in 2014 under the Government of India’s Case II Competitive Bidding Guidelines. It operates under a 25-year Power Purchase Agreement (PPA) and has long-term Fuel Supply Agreements (FSA) with South Eastern Coalfields Limited (SECL) and Northern Coalfields Limited (NCL).

For the financial year ended March 31, 2025, NPL reported a turnover of Rs 4,421.54 crore and adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of Rs 1,153 crore. The plant recorded a Plant Availability Factor (PAF) of 95.36% in FY25 and achieved a Plant Load Factor (PLF) of 94.33% in July 2024, ranking second among Indian thermal power plants above 500 MW capacity.

Following the acquisition, Torrent’s operational generation capacity will rise from around 5 GW to 6.4 GW. The company will also gain access to the plant’s existing infrastructure, which supports potential capacity expansion, along with operational experience built over more than a decade.

Torrent Power Chairman Samir Mehta stated that the acquisition is expected to be value accretive from the first day, enhancing revenues and profitability while expanding the company’s geographic presence without development or execution risk. L&T Chairman and Managing Director S N Subrahmanyan said the divestment aligns with L&T’s strategy to unlock value and strengthen its core businesses.

Torrent Power, part of the Rs 45,000 crore Torrent Group, operates across generation, transmission and distribution. The company has an installed generation capacity of 5,039 MW, comprising gas-based, renewable and coal-based assets, with additional capacity under development.

L&T is a USD 30 billion Indian multinational engaged in engineering, procurement and construction (EPC), advanced manufacturing and services across global markets. The divestment is part of its broader plan to exit the development projects business.

The acquisition does not constitute a related-party transaction, and Torrent is not part of L&T’s promoter group.

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