Torrent Power Reports Robust Q3 Performance with 34% Profit Surge
Torrent Power, a prominent integrated power utility, unveiled its December quarter financial results after market hours today, showcasing a substantial increase in profitability. The company posted a consolidated net profit of ₹655 crore for the third quarter of fiscal year 2026, representing a significant 34% year-on-year growth from ₹490 crore recorded in the same period last year.
Key Drivers Behind the Profit Growth
The impressive profit jump was primarily fueled by enhanced contributions from the company's gas-based power plants, which operated at improved efficiency levels. Additionally, the licensed and franchised distribution businesses demonstrated stronger operational performance, while the renewable energy segment delivered better results, contributing to the overall uptick. These positive factors were partially moderated by increased interest and depreciation expenses incurred during the quarter.
Notably, the profit figures were further bolstered by gains realized from the sale of non-current investments in Q3FY25, adding a one-time boost to the bottom line.
Revenue and EBITDA Highlights
On the revenue front, Torrent Power reported operational revenue of ₹6,778 crore for the quarter, marking a 4.3% increase compared to ₹6,499 crore in the year-ago period. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹1,472 crore, reflecting a robust 15% rise from ₹1,284 crore reported in Q3FY25. This indicates improved operational efficiency and cost management across its business segments.
Strategic LNG Agreement with JERA Japan
In a strategic move to secure long-term fuel supply, Torrent Power entered into a 10-year LNG Sale and Purchase Agreement with JERA, Japan. The agreement stipulates the supply of up to 0.27 million metric tons per annum (MMTPA) of liquefied natural gas, commencing from 2027.
The company plans to utilize this LNG to efficiently operate its 2,730 MW gas-based power plants, addressing India's escalating power demand, supporting peak load periods, and balancing the intermittent nature of renewable energy sources. Furthermore, this pact will ensure reliable gas availability for Torrent Gas Ltd., enabling it to serve a diverse customer base including households, commercial establishments, industrial consumers, and compressed natural gas (CNG) vehicles.
Dividend Declaration and Fundraising Plans
Alongside the quarterly results, Torrent Power announced an interim dividend of ₹15 per share for the fiscal year 2025–26. The record date for determining eligible shareholders has been set for Monday, February 16, 2026, with the dividend payment scheduled for March 12, 2026.
In addition, the company's board approved a proposal to raise funds up to ₹7,000 crore through the issuance of Non-Convertible Debentures (NCDs). These will be offered in one or more tranches via private placement, aimed at strengthening the company's financial position and supporting future growth initiatives.
Company Overview and Market Position
Torrent Power, with a market capitalization of approximately ₹29,165 crore, is a key entity within the broader Torrent Group, which boasts an estimated valuation of around ₹45,000 crore. As one of India's largest power sector players, the company maintains a comprehensive presence across the entire power value chain, encompassing generation, transmission, and distribution activities.
This integrated approach allows Torrent Power to leverage synergies and maintain a competitive edge in the dynamic energy market, positioning it well for sustained growth amidst evolving industry trends and regulatory frameworks.
