01 — At a Glance
Watts Up? Quite a Lot, Actually.
- 52-Week High / Low₹1,640 / ₹1,188
- Q3 FY26 Revenue₹6,778 Cr
- Q3 FY26 PAT (reported)₹655 Cr
- Annualised EPS (TTM)₹62.7
- 3-Month Return+16.6%
- Book Value₹373
- Price to Book3.97x
- EV/EBITDA14.4x
- Debt / Equity0.55x
- Installed Capacity5 GW
The Short Version: Torrent Power reported Q3 FY26 PAT of ₹655 Cr — a 35% jump YoY. Sounds fantastic. Except ₹270 Cr of that came from a one-time regulatory order related to the UNOSUGEN gas plant for prior periods, which management declined to explain publicly on the earnings call. Strip that out and the adjusted PAT is more modest. The stock has delivered +16.6% in 3 months. The Nabha Power acquisition at ₹6,889 Cr, a 10-year LNG deal with JERA, and a 10 GW renewable target for 2030 are the real storylines. The mystery order is just the spicy opening act.
02 — Introduction
The Power Company With an Ahmedabad Address and Global Ambitions
Let’s talk about Torrent Power. If you grew up in Gujarat, you know Torrent Power the way Mumbaikars know monsoon: unavoidable, usually reliable, and occasionally infuriating. For everyone else, it’s the power utility that supplies electricity to Ahmedabad, Surat, Gandhinagar, Dadra & Nagar Haveli, and even wrangles the notoriously messy Bhiwandi and Agra franchises.
Unlike the pure-play IPPs that gamble everything on merchant rates, Torrent has always been the sensible elder sibling — regulated returns, franchise distribution, solid gas-based generation, and just enough renewable expansion to stay interesting. The business model is essentially a government-approved license to print money in specific geographies, dressed up with some solar panels and a pumped hydro dream.
Q3 FY26 delivered ₹655 Cr PAT, a 35% YoY jump. But the quality of that number is messier than the diamond industry in Surat right now — and the management’s own concall confirmed that ₹270 Cr of the profit beat is non-recurring and prior-period in nature. Add a ₹6,889 Cr acquisition of Nabha Power, a 10-year LNG supply deal with Japan’s JERA, an AA+ CRISIL rating reaffirmation, and ₹7,000 Cr of NCD fundraising approved, and you’ve got an earnings season that reads less like a power company quarterly and more like an infrastructure thriller. Buckle up. The grid is live.
Concall Note (Feb 2026): “It is not recurring, it is one time” — Management on the ₹270 Cr UNOSUGEN regulatory benefit. They also said they’d explain the details “after the call.” Bold choice in an investor call. Very bold.
03 — Business Model: WTF Do They Even Do?
They Sell Electricity. But Fancily.
Electricity is one of those things everyone needs and nobody really thinks about until it’s gone. Torrent Power’s genius is that in certain geographies, they are the only person allowed to sell it. That’s called a distribution license, and it’s about as close to a moat as you get in regulated industries.
The company operates across three segments. Transmission and Distribution (T&D) is the cash engine, accounting for ~89% of revenues — they distribute power to over 4.13 million customers across 2,050 sq km of licensed area in Gujarat, plus franchise operations in Bhiwandi (Maharashtra) and Shil-Mumbra-Kalwa. The Thermal Generation business (8% of revenues) runs 2,730 MW of gas-based and 362 MW of coal-based plants. And Renewables (~3%, but rapidly expanding) has 921 MW of wind and 403 MWp of solar operational, with an additional 3 GW-plus under development.
The management’s most important concall disclosure? Distribution earnings are structurally driven by asset capitalisation and regulated return rates — NOT by how many units people consume. As one management member explained: profitability depends on what gets capitalised and what ROCE the regulator allows. Demand, apparently, is just the narrative. The tariff order is the real paycheque.
T&D Share~89%Revenue Mix
Thermal~8%Revenue Mix
Renewables~3%But growing fast
Customers4.13 MnLicensed area
Distribution Loss Context: Torrent’s T&D loss in licensed areas is 2.7% in FY24 — one of the lowest in India. For reference, state DISCOMs routinely run at 15–25%. Torrent is the overachiever at the front of a very embarrassing classroom.
💬 Does your city get power from Torrent? Do you even know who supplies your electricity? Drop a comment — let’s find out how many EduInvesting readers are unknowing Torrent customers.
04 — Financials Overview
Q3 FY26: The Numbers (With a Footnote the Size of a Substation)
Continue reading with a premium membership.
