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Informist, Tuesday, Aug. 5, 2025

--Torrent Power: Part of our strategy to look at buying thermal assets too 

--CONTEXT: Comments by Torrent Power's mgmt in post-earnings analyst concall 

--Torrent Power: Will bid for UP distribution whenever it opens 

By Pallavi Singhal and Sunil Raghu

NEW DELHI – Torrent Power Ltd. has realised a capital expenditure of INR 3.5 billion in renewables in the first quarter of 2025-26 (Apr-Mar), a company executive said in a post-earnings analyst conference call Tuesday. According to management, a total amount of INR 8.5 billion has already been spent as the total capital expenditure for the quarter. The company has targeted a capex of INR 70 billion-INR 80 billion for FY26.

The company's management said that the company was open to acquiring thermal assets as part of its growth strategy. Currently, Torrent Power generates just 362 MW power using coal. This is 7% of its total power generation capacity. Torrent Power has expressed interest in bidding for the UP distribution business whenever it becomes available, they said. 

Earlier in the day, the company reported a double-digit fall in its top and bottom lines for Apr-Jun. The company's management said that a significant reduction in profits from merchant power and sales of liquified natural gas, mainly due to lower demand following an early monsoon, causing a drop in power requirements. The management added that high LNG prices also negatively impacted sales. "As a result, the Plant Load Factor of thermal power plants fell to 39% in the reporting quarter from 60% during the same period last year. 

The company's revenue from the transmission and distribution business fell nearly 6% on year to INR 65.34 billion and its revenue from the power generation business declined over 32% on year to INR 24.89 billion. Revenue from the renewables segment rose over 20% on year to INR 3.69 billion. Revenue from its renewable energy business fell 4% on year to INR 2.51 billion.

Improved contributions from the renewable segment, driven by solar capacity additions and favourable wind conditions, resulted in better plant load factor, the company said in a press release. Plant load factor is a metric that measures the performance of a power plant by comparing the actual energy it generates to the maximum energy it can generate.

The company's bottom line shrunk almost 25% on year to INR 7.31 billion for the reporting quarter. The company's top line fell over 12% on year. 

On Tuesday, shares of the company closed 0.1% higher at INR 1,313.60 on the National Stock Exchange.  End