Torrent Power (TORNTPOWER) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 reported PBT was INR 985 crores, down 25% year-over-year due to lower merchant gains, non-recurring items, and subdued power demand.

• Revenue from operations declined 12% year-over-year to ₹7,906 crore, with total comprehensive income dropping 26% to ₹739 crore.

• Improved contributions from renewables and better operational parameters in distribution partially offset the impact of lower merchant gains.

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

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board on August 5, 2025.

Financial highlights

• Reported PBT declined by INR 329 crores year-over-year, impacted by a non-cash forex loss of INR 59 crores and absence of last year's INR 102 crores favorable tariff order.

• Consolidated revenue from operations for Q1 FY26 was ₹7,906.37 crore, down from ₹9,033.73 crore in Q1 FY25.

• Consolidated net profit for Q1 FY26 was ₹741.58 crore, compared to ₹996.34 crore in Q1 FY25.

• EBITDA for Q1 FY 2025-26: ₹1,588 crore, down 18% year-over-year.

• Interest expenses reduced by INR 547 crores due to debt repayment from QIP proceeds.

Outlook and guidance

• NVVN tender guarantees minimum offtake until October 15, with unutilized supply expected to spill into Q2 and possibly Q3.

• CapEx for FY26 projected at INR 7,000–8,000 crores, with a higher figure anticipated for FY27.

• 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.

• Renewable CapEx to ramp up in H2 FY26 as 500–700 MW capacity is added.

• Well-positioned to capitalize on green energy opportunities due to comfortable leverage and robust balance sheet.