Torrent Power (TORNTPOWER) investor relations material

Executive summary

• Q1 FY26 reported PBT was INR 985 crores, down 25% year-over-year, mainly due to lower merchant gains and non-recurring FX losses, with adjusted PBT at INR 1,144 crores, a 14% decrease.

• Revenue from operations declined 12% year-over-year to ₹7,906 crore, and total comprehensive income dropped 26% to ₹739 crore, impacted by subdued power demand and high gas prices.

• Distribution and annuity segments improved, supported by better operational parameters and higher interest income.

• The business remains resilient, backed by a diversified portfolio and strong operational track record.

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved by the Board, with no material misstatements found by auditors.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹7,906.37 crore, down from ₹9,033.73 crore in Q1 FY25; consolidated net profit was ₹741.58 crore, down from ₹996.34 crore.

• Standalone revenue for Q1 FY26 was ₹6,167.04 crore, with standalone net profit at ₹684.89 crore.

• Non-recurring FX loss of INR 59 crores impacted PBT; last year included a non-recurring credit of INR 102 crores from a favorable tariff order.

• Merchant sales and LNG gains dropped by INR 333 crores due to subdued demand and high LNG prices.

• EBITDA for Q1 FY26 was ₹1,588 crore, down 18% year-over-year.

Outlook and guidance

• Minimum guaranteed offtake under the NBVN tender is expected to be realized by Q3, with potential spillover if not fully utilized by October.

• CapEx for FY26 is projected at INR 7,000–8,000 crores for renewables, with a higher figure expected for FY27; ramp-up anticipated in H2 as project execution accelerates.

• Company targets significant renewable capacity expansion, with ~4.9 GW renewables in the pipeline and a long-term goal of ~8.4 GW including green hydrogen and pumped storage.

• No explicit forward-looking guidance provided, but impairment assessment of DGEN project indicates ongoing review of asset values and market conditions.