Whalesbook
Profit Dip Explained
The substantial 70% year-on-year drop in Torrent Power's fourth-quarter consolidated net profit to ₹318.2 crore was primarily driven by a high base effect from the previous fiscal year. This base was inflated by a one-time, non-cash reversal of deferred tax liabilities amounting to ₹637 crore in FY25.
Operational Resilience
Despite the headline profit figure, operational performance presented a more nuanced picture. Revenue for the quarter remained broadly flat at ₹5,930 crore against ₹5,951 crore in the prior year. However, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a marginal increase of 1.7% to ₹1,149.3 crore from ₹1,130.5 crore a year ago. This resulted in a slight improvement in the EBITDA margin to 17.9% from 17.5%.
Segment Performance and Dividends
The gas-based generation segment faced headwinds due to volatile gas markets and fluctuating power demand conditions, weakening its contribution. To fuel future growth and reward shareholders, Torrent Power's board has proposed a final dividend of ₹5 per share for FY26, supplementing the ₹15 interim dividend already distributed.
Expansion and Funding
Furthermore, the company is securing significant capital for expansion. It gained approval to raise up to ₹10,000 crore through non-convertible debentures via private placement. Managing Director Jinal Mehta confirmed strategic investments exceeding ₹30,000 crore to boost thermal capacity by 3 GW, including a new 1,600 MW project in Madhya Pradesh and the acquisition of 1,400 MW Nabha Power. The company remains committed to its renewables, storage, and distribution sectors, albeit with a cautious outlook on potential near-term disruptions from West Asian geopolitical tensions.
Market Reaction
These results were announced after market close on Tuesday, May 12, 2026. Ahead of the filing, shares of Torrent Power shed 4.77% to close at ₹1,600.70 on the National Stock Exchange.