Torrent Power (TORNTPOWER) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw significant year-over-year growth, with PBT rising to INR 979 crore (up 42%) and total comprehensive income up 48% to ₹730 crore, driven by higher merchant power sales, reduced finance costs, and operational excellence.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with statutory auditor review confirming compliance and no material misstatements.

• Financials reflect the transfer of the renewable power undertaking to a subsidiary, effective April 1, 2024, as per NCLT-approved scheme.

• Strong group synergies and diversified portfolio across power generation, transmission, and distribution, with a focus on renewables and green technologies.

• Operational excellence reflected in low distribution losses and high power availability across licensed and franchisee areas.

Financial highlights

• Consolidated revenue from operations for Q2 FY26 was ₹7,876 crore, up from ₹7,175.81 crore in Q2 FY25; standalone revenue was ₹6,106.26 crore, up from ₹5,287.56 crore.

• Consolidated net profit for Q2 FY26 was ₹741.55 crore, up from ₹495.72 crore in Q2 FY25; standalone net profit was ₹746.16 crore, up from ₹464.13 crore.

• Adjusted PBT (excluding one-offs) was INR 948 crore, up 52% from INR 622 crore in Q2 last year.

• Thermal generation business contribution increased by INR 293 crore, mainly due to higher merchant power sales.

• Distribution business contribution (adjusted for one-offs) increased by INR 11 crore, driven by improved loss metrics and higher ROE/ROCE from asset capitalization.

Outlook and guidance

• Operational capacity expected to double from ~5.0 GW to ~10.1 GW, led by robust renewable capacity addition.

• Renewable capacity addition target for FY26 is 500–600 MW, with most new projects to be commissioned over the next 1.5–2 years.

• Market-driven merchant sales possible in Q3/Q4 depending on demand and LNG prices.

• Strategic focus on green hydrogen, pumped storage hydro, and hybrid solutions to enhance returns and sustainability.

• No further impairment provision required for the DGEN Mega Power Project as of September 30, 2025, after management review.