TORNTPOWER · Power · filed 4 Nov 2026
Torrent Power Ltd. reported revenue of ₹9,802 cr for July to September 2026, +24.4% on the year and +20.6% on the quarter. That is faster than this quarter has grown in recent years (+6.4% on average), so the year-on-year number is not just the season. It is the highest quarterly revenue in the last 12 quarters on record. Over the last four quarters revenue comes to ₹31,110 cr, +8.3% on the four before.
Operating profit (EBITDA) was ₹1,738 cr, a margin of 17.7%, −138 bps on the year and −119 bps on the quarter. Over the last 8 quarters the margin has ranged from 17.1% to 20.7%, averaging 18.5%. Operating costs grew +26.6%, faster than revenue at +24.4%, so operating profit grew less than sales.
Net profit was ₹838 cr, +13.0% on the year and +26.6% on the quarter, with earnings per share of ₹16.28. Profit before other income, one-offs and tax fell 2.2%, so 15 points of the headline growth came from outside the core business. The tax rate of 26% is in line with its recent average. Profit over the last four quarters totals ₹2,486 cr, −18.5% on the four before.
Of the 13 companies in Power and utilities that have reported Q2 FY27 so far, Torrent Power Ltd. ranks 7th on revenue growth; the sector median is +27.2%. Its margin moved −138 bps on the year against a sector median of +151 bps.
Most power earnings are regulated returns on equity, with fuel costs passed through, so revenue can swing with fuel prices while profit moves far less.
On earnings per share of ₹48.03 over the last four quarters, the stock at ₹1,236.00 trades at 25.7 times trailing earnings.
Finance cost rose fast and now takes a large bite of operating profit. New borrowing, or a higher rate?
Source: Results filing
Headline profit grew much faster than core profit. What made up the difference?
Source: Results filing
Profit is backed by cash: operating cash flow exceeded profit.
Source: Cash flow statement
Could not run on this quarter: Exceptional items that recur, IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹4,238 cr | ₹2,330 cr | ▲ 81.9% |
| Inventory | ₹853 cr | ₹507 cr | ▲ 68.1% |
| Cash | ₹234 cr | ₹767 cr | ▼ 69.5% |
| Bank balances | ₹25.1 cr | ₹64.8 cr | ▼ 61.3% |
| Long-term borrowings | ₹20,249 cr | ₹11,871 cr | ▲ 70.6% |
| Short-term borrowings | ₹2,809 cr | ₹1,862 cr | ▲ 50.9% |
| Trade payables | ₹2,120 cr | ₹1,879 cr | ▲ 12.8% |
| Net block | ₹26,744 cr | ₹24,201 cr | ▲ 10.5% |
| Capital work in progress | ₹8,383 cr | ₹6,962 cr | ▲ 20.4% |
| Equity | ₹21,680 cr | ₹19,709 cr | ▲ 10.0% |
| Total assets | ₹58,565 cr | ₹45,193 cr | ▲ 29.6% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹2,086 cr | ₹2,524 cr |
| Capital expenditure | −₹4,964 cr | −₹2,705 cr |
| Investing cash flow | −₹7,381 cr | −₹3,567 cr |
| Financing cash flow | ₹4,763 cr | ₹981 cr |
| Dividends paid | −₹261 cr | −₹265 cr |
Operating cash flow was 1.39× profit. Receivables at 43 days of sales (+14 days against the last year end). Inventory at 9 days of sales (+2 days).
No emphasis of matter.
Filing p. limited review report
Completed acquisition of 100% equity shares and convertible instruments of Nabha Power Limited (NPL) from L&T Power Development Limited on June 25, 2026 for a total consideration of Rs. 3,632.35 Crore. (p. consolidated note 1 p.22)
Incorporated wholly owned subsidiaries Torrent Urja 50 Private Limited and Torrent Urja 51 Private Limited with effect from August 19, 2026. (p. review report Annexure A p.14)
Tax: Consolidated tax expense of ₹292.77 crore (current tax ₹228.31 crore, deferred tax charge ₹64.46 crore) on Profit before tax of ₹1,130.73 crore
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Capacity (MW) | 1,400 | — | — |
| Receivable days (days) | 43.14 | — | — |
| Debtors Turnover Ratio (6M) (x) | 5.46 | — | 5.44 |
| Inventory Turnover Ratio (6M) (x) | 26.37 | — | 21.97 |
| Operating Margin | 17.74% | 18.93% | 19.12% |
| Net Profit Margin | 8.55% | 8.15% | 9.42% |
Worked out from filed numbers. Receivable Days: Trade Receivables (₹4,238.40 crore) / (H1 Revenue ₹17,925.73 crore * 2) * 365
Trade receivables stood at ₹4,238.40 crore as on September 30, 2026 compared to ₹2,329.76 crore as on March 31, 2026, primarily driven by the acquisition of Nabha Power Limited and distribution receivables.
Receivables expanded following consolidation of Nabha Power Limited and operational working capital cycles.
Acquired 100% equity of Nabha Power Limited operating 1,400 MW (2X700 MW) supercritical thermal power plant on June 25, 2026; capital work-in-progress stands at ₹8,383.22 crore for ongoing renewable and distribution projects.
1,400 MW operating thermal asset added under 25-year PPA alongside ₹8,383.22 crore in active CWIP.
Read using the Power and utilities framework (named in the filing read). Primary valuation lens: P/B against allowed RoE.
Read more closely in this sector: Regulatory receivables and late payment surcharge · Capacity announced against commissioned.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Generation | ₹3,329 cr | ▲ 37.5% | ₹710 cr | ▲ 54.5% |
| Transmission and Distribution | ₹7,259 cr | ▲ 14.0% | ₹965 cr | ▲ 7.6% |
| Renewables | ₹511 cr | ▲ 56.3% | ₹386 cr | ▲ 37.1% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹6,366 cr | ₹6,529 cr | ₹9,034 cr | ₹7,176 cr | ₹6,499 cr | ₹6,456 cr | ₹7,906 cr | ₹7,876 cr | ₹6,778 cr | ₹6,406 cr | ₹8,124 cr | ₹9,802 cr |
| YoY | — | — | +23% | +3% | +2% | −1% | −12% | +10% | +4% | −1% | +3% | +24% |
| EBITDA margin | 16.4% | 17.0% | 20.6% | 16.8% | 17.1% | 17.5% | 18.8% | 19.1% | 20.7% | 17.9% | 18.9% | 17.7% |
| Other income, % of PBT | 11% | 16% | 6% | 18% | 27% | 18% | 11% | 8% | 9% | 13% | 9% | 22% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 27% | 28% | 24% | 28% | 22% | — | 25% | 24% | 19% | 39% | 28% | 26% |
| Net profit | ₹374 cr | ₹447 cr | ₹996 cr | ₹496 cr | ₹489 cr | ₹1,077 cr | ₹742 cr | ₹742 cr | ₹655 cr | ₹331 cr | ₹662 cr | ₹838 cr |
| YoY | — | — | +87% | −9% | +31% | +141% | −26% | +50% | +34% | −69% | −11% | +13% |
| Core profit YoY | — | — | +98% | −11% | −0% | −3% | −29% | +60% | +61% | −6% | −4% | −2% |
| EPS | ₹7.49 | ₹8.95 | ₹20.23 | ₹10.01 | ₹9.44 | ₹21.03 | ₹14.52 | ₹14.36 | ₹12.76 | ₹6.31 | ₹12.68 | ₹16.28 |
| Flags | · | · | ✓ | ✓ | 1 | 2 | ✓ | ✓ | ✓ | ✓ | ✓ | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Torrent Power Ltd. reported revenue of ₹9,802 cr (+24.4% on the year) and net profit of ₹838 cr (+13.0% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved −2.2% on the year, against +13.0% for reported profit.
2 checks raised a question: Finance cost rose fast and now takes a large bite of operating profit. New borrowing, or a higher rate?
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