Torrent Power Q1 FY27 Results: Revenue Rises to ₹8,124 Crore, EBITDA Grows Despite Higher Finance Costs

What Happened ?

• Torrent Power reported resilient Q1 FY27 results despite a challenging operating environment. Revenue and EBITDA registered modest growth, driven by improved operational performance in the company’s distribution network and renewable energy portfolio. However, geopolitical disruptions affected LNG availability, impacting thermal power operations, while increased borrowings for under-construction projects resulted in higher finance costs, reducing Total Comprehensive Income. 

key details

Business & Operational Highlights:

• Revenue from operations increased to ₹8,124 crore from ₹7,906 crore.
• EBITDA grew 2% YoY to ₹1,619 crore.
• Distribution business delivered 10% EBITDA growth.
• Renewable Energy business recorded 6% EBITDA growth.
• Improved plant load factors and contributions from projects commissioned during the previous year supported renewable performance.
• Thermal power operations were impacted by geopolitical disruptions affecting LNG supplies.
• Higher borrowings for under-construction assets increased finance costs, reducing Total Comprehensive Income to ₹639 crore. 

Strategic Developments:

• Torrent Power completed the acquisition of 100% equity and convertible instruments of Nabha Power Limited (NPL) on June 25, 2026 for ₹3,632.35 crore.
• NPL operates a 2×700 MW coal-based supercritical thermal power plant in Punjab.
• The plant supplies electricity under long-term Power Purchase Agreements with Punjab State Power Corporation Limited (PSPCL).
• The acquisition strengthens Torrent Power’s conventional generation portfolio and expands its long-term generation assets. 

Note:

• As highlighted on page 3 of the media release, Torrent Power’s installed generation capacity now stands at 6.6 GW, with approximately 4.2 GW of renewable projects, 3 GW of pumped storage, and 1.6 GW of coal-based capacity under development. The company expects these projects to strengthen its long-term growth pipeline and energy transition strategy. 

Risk Analysis

Summary:

• Torrent Power maintained stable operating performance despite external challenges. However, higher finance costs and continued investment in large infrastructure projects may keep earnings under pressure until new assets become operational.

Key Risks:

• Geopolitical disruptions could continue to affect LNG availability and thermal generation.
• Higher borrowings have increased finance costs.
• Large under-construction projects carry execution and commissioning risks.
• Renewable and conventional expansion projects require timely regulatory approvals and execution.

Worst Case:

• If fuel supply disruptions persist or project commissioning is delayed, profitability and returns from ongoing capital investments could remain under pressure.

Risk Level: Medium

Company Commentary

Management highlighted the following during the quarter:

• Management stated that EBITDA growth was supported by improved operational performance across the Distribution and Renewable Energy businesses.
• The company highlighted that higher finance costs were primarily due to borrowings undertaken for strategic investments in under-construction assets expected to drive future growth.
• Torrent Power also emphasized the successful acquisition of Nabha Power Limited as an important step in expanding its generation portfolio.