1. At a Glance – Power Utility or Power Hungry?
Torrent Power Ltd is trading at ₹1,454, sitting on a ₹73,311 Cr market cap, with a 23.2 P/E, 19% ROE, 16% ROCE, and a dividend yield of 1.31%.
In the last 3 months, the stock has returned 11.7%. Not a rocket. Not a dud. Just steady “Bijli Board ka topper”.
Latest Q3 FY26 (Dec 2025) numbers:
- Revenue: ₹6,778 Cr
- PAT: ₹655 Cr
- OPM: 21%
- EPS: ₹12.76
Quarter-on-quarter profit growth? -11.7%.
Year-on-year profit growth? +75%.
Yes, you read that right. One quarter looks like it skipped gym day. The other looks like it swallowed protein powder.
Debt? ₹10,431 Cr.
Debt-to-equity? 0.55.
Interest coverage? 4.69.
This is not a fragile power play. It’s a regulated monopoly machine in Gujarat wearing a renewable energy cape.
But is it overcharging investors… or underappreciated?
Let’s flip the switch.
2. Introduction – Gujarat Ka Bijli King
Torrent Power is not your random thermal plant operator praying for coal linkages.
It is an integrated utility — generation, transmission, and distribution. Basically, from “power plant se current nikla” to “aapke ghar ka fan chala”.
Its strongest weapon?
Licensed electricity distribution in Ahmedabad, Surat, Gandhinagar and other parts of Gujarat.
In those areas, Torrent is the sole distribution licensee. That means no competition. No Tata Power sneaking in. No Adani Power peeking through the window.
Distribution loss?
Just 2.7% in FY24.
For context, many state discoms operate like leaking buckets. Torrent runs like a tight accountant’s Excel sheet.
It distributes nearly 30 billion units to over 4.13 million customers.
But wait — this isn’t just old-school electricity.
They’re:
- Building 10 GW renewable capacity by 2030
- Developing 8.4 GW pumped hydro storage
- Entering Green Hydrogen (18 KTPA awarded under PLI)
- Planning a 1,00,000 KTPA Green Ammonia plant
- Raising ₹5,000 Cr via QIP
- Issuing up to ₹7,000 Cr NCDs
This is not a sleepy utility. This is a utility on caffeine.
But caffeine sometimes causes palpitations. So let’s examine the heart rate.
3. Business Model – WTF Do They Even Do?
Let’s simplify.
1) Transmission & Distribution (89% Revenue)
This is the bread, butter, and Gujarati farsan.
They distribute power in:
- Ahmedabad
- Surat
- Gandhinagar
- Dahej SEZ
- Dadra & Nagar Haveli
- Daman & Diu
Plus franchise operations in:
- Bhiwandi
- Agra
- SMK (Mumbra, Shil, Kalwa)
Distribution losses at 2.7% — one of the lowest in India.
Tell me honestly — when was the last time you heard of a discom this efficient?
2) Thermal Generation (8%)
Installed capacity:
- 2,730 MW gas-based
- 362 MW coal-based
Coal PLF: 91% in FY24
Gas PLF: 25%
Gas plants in India often sit like unused gym memberships. Torrent actually runs theirs — modestly.
3) Renewables (3%)
- Solar: 2,091 MWp (403 operational, 1,688 under development)
- Wind: 2,260 MW (921 operational)
And now:
- 10 GW renewable ambition by 2030
- 8.4 GW pumped hydro pipeline
- 300 MW wind project awarded
- 1,600 MW coal plant in MP with 25-year PPA at ₹5.829/kWh
See the contradiction?
Green hydrogen on one side.
New coal plant on the other.
Climate activists: confused.
Investors: calculating.
4. Financials Overview – Quarterly Results
Q1 FY26 EPS: ₹14.52
Q2 FY26 EPS: ₹14.36
Q3 FY26 EPS:
