Torrent Power Ltd Q2FY26 – The 7,876 Crore Shockwave: From Coal to Green Hydrogen, This Powerhouse Is Charging Up India’s Future (and Dividends)
1. At a Glance
If Karna from Mahabharata had been reincarnated as a corporate entity, he’d probably be Torrent Power Ltd — born from power, loyal to Gujarat, and always fighting for its share of wattage glory. With a market cap of ₹65,558 crore, Torrent Power is that rare beast in India’s power jungle that does generation, transmission, and distribution, and still has enough charge left to flirt with green hydrogen.
At ₹1,301 per share (as of Nov 14, 2025), the company’s P/E stands at 21.9 — cheaper than Tata Power’s 30x but costlier than CESC’s budget watt-store tag of 15.9x. The return on equity? A cool 19%. ROCE? 16%. Dividend yield? 1.46% — not shocking, but not blackout-level either.
The latest quarterly revenue stood at ₹7,876 crore with a PAT of ₹742 crore, marking a YoY profit surge of 50.4%, even as top-line grew by 9.8%. When you make ₹742 crore every 90 days, even your accountant starts believing in renewable karma.
As the Bhagavad Gita says, “Do your duty without expecting rewards.” Torrent clearly didn’t get the memo — it’s doing its duty and expecting returns, sustainability awards, and MoUs with half the Indian government.
2. Introduction
In a country where electricity bills are higher than dating app subscriptions, Torrent Power has quietly become the ultimate plug-in for millions. It distributes nearly 30 billion units of electricity every year and powers cities like Ahmedabad, Gandhinagar, Surat, and Dahej SEZ — basically, Gujarat’s high-voltage pride.
Torrent’s corporate journey is the story of evolution — from a humble Gujarat-based distributor to a fully integrated utility spanning thermal, wind, solar, hydro, and even green hydrogen. It’s not just lighting bulbs anymore; it’s trying to charge your EV, your factory, and maybe even your future.
But, of course, with great power comes great… depreciation. Margins have slipped from a 25% golden age to 17–18% in recent years, partly because Torrent took over the difficult power distribution zone of Dadra & Nagar Haveli and Daman & Diu. That’s like adopting an energy orphan — noble, but expensive.
Still, this company has a sense of humour — it reports stable profits even when India’s power grid looks like an overworked UPS. Torrent Power’s message to investors? “We might lose a few volts, but we’re not losing our spark.”
3. Business Model – WTF Do They Even Do?
Torrent Power is a vertically integrated electricity empire that does everything short of selling extension cords.
Transmission & Distribution (89%): This is where the big money flows — Torrent runs power networks in Gujarat, Maharashtra, Uttar Pradesh, and Daman-Diu. It’s both a licensed distributor (2,050 sq km area) and a franchise operator (1,007 sq km). The loss ratio in its licensed zones is just 2.7%, which, in power lingo, is equivalent to scoring 98% attendance in Indian school.
Generation (Thermal 8%): Torrent has 3,092 MW of thermal generation — 2,730 MW gas-based and 362 MW coal-based. PLF (Plant Load Factor) improved to 33% in FY24 — the coal units ran at 91%, the gas ones at a lazy 25%. Basically, the coal plants are doing push-ups while gas plants are on yoga mats.
Renewables (3%): With 2,091 MWp of solar and 2,260 MW of wind projects, Torrent’s renewable dreams are no longer small-scale experiments. 403 MWp of solar and 921 MW of wind are already operational, and more than 3,000 MW are in various stages of “under development,” the corporate version of “we’re still thinking about it.”
And if that’s not enough, they’ve also entered EV charging, green hydrogen, and ammonia production — because why not? It’s 2025; everyone needs a sustainability badge.
4. Financials Overview
Source table
Metric (₹ Cr)
Q2 FY26 (Sep 2025)
Q2 FY25 (Sep 2024)
Q1 FY26 (Jun 2025)
YoY %
QoQ %
Revenue
7,876
7,176
7,906
9.8%
-0.4%
EBITDA
1,506
1,207
1,483
24.7%
1.5%
PAT
742
496
742
49.6%
0.0%
EPS (₹)
14.36
10.01
14.52
43.5%
-1.1%
Commentary: Torrent’s quarterly numbers are as stable as a stabilizer on full charge. Revenue up, margins steady, and PAT shining like a Diwali diya. EPS annualized works out to ₹57.4, meaning a P/E of roughly 22x — respectable for a utility that also dabbles in hydrogen chemistry.
5. Valuation Discussion – Fair Value Range Only
Let’s decode Torrent’s fair value using three nerdy (but essential) methods:
a) P/E Method: Current EPS (TTM) = ₹59.3 Industry P/E = 23.3 Fair Range = 18x–25x = ₹1,067–₹1,483
b) EV/EBITDA Method: EV = ₹75,685 Cr, EBITDA (TTM) = ₹5,231 Cr EV/EBITDA = 14.5x If normalized to sector median (≈13x), fair EV = ₹68,000 Cr → fair price ≈ ₹1,200
c) DCF Simplified: Assume 10% FCF growth for 5 years, discount at 11%, terminal at 3%. Approx. fair range = ₹1,150–₹1,500
📜 Disclaimer: This fair value range (₹1,100–₹1,500) is for educational purposes only. It’s not a buy/sell signal — unless your electricity bill says “Torrent” and you’re paying it in shares.
6. What’s Cooking – News, Triggers, Drama
Oh boy, Torrent’s newsroom is more active than Twitter on budget day:
Nov 2025: Reported ₹7,876 crore revenue, ₹730 crore total comprehensive income. Secured 1,600 MW LOA at ₹5.829/kWh — translating into ₹6,500 crore annual revenue from a new thermal plant.
Sep 2025: Acquired NZIPL and NZPPPL for ₹211 crore, grabbing 922 acres for renewable expansion.
Aug 2025: Bagged a ₹22,000 crore, 1,600 MW coal thermal plant in Madhya Pradesh. Because nothing says “transition” like adding more coal while promising green hydrogen.
Jun 2025: Won 300 MW wind projects worth ₹2,650 crore from SECI — because wind money is still money.
