Torrent Power Shares Tumble 6% Amid Investor Disappointment Over Q3 Performance
Shares of Torrent Power, a prominent integrated power utility, faced intense selling pressure during today's trading session, plummeting 6% to hit a daily low of ₹1,397.70 per share. This sharp decline came as investors expressed dissatisfaction with the company's performance in the December quarter, despite overall growth in key financial metrics.
Quarterly Financial Results Show Mixed Trends
After market hours on Tuesday, Torrent Power reported a consolidated net profit of ₹655 crore for the quarter. This figure represents a significant 34% year-on-year increase from the ₹490 crore recorded in the same quarter of the previous year. However, when compared sequentially to the ₹741 crore net profit in Q2 of FY26, the company experienced a 12% decline.
Revenue from operations also displayed a mixed pattern. On a year-on-year basis, revenue improved by 4.3% to reach ₹6,778 crore. Yet, on a quarter-on-quarter comparison, revenue fell by 14%, indicating weaker sequential performance that contributed to the stock's downturn.
Strategic LNG Agreement and Dividend Declaration
In a significant strategic move, Torrent Power announced it has entered into a 10-year LNG Sale and Purchase Agreement with JERA of Japan. This agreement, finalized during the quarter, will supply up to 0.27 million metric tonnes per annum of LNG starting from 2027.
The company plans to utilize this LNG to efficiently operate its 2,730 MW gas-based power plants. This initiative aims to meet India's escalating power demand, support peak demand periods, and effectively balance renewable energy integration into the grid. Additionally, the agreement will ensure reliable gas availability for Torrent Gas Ltd. to serve various sectors including households, commercial establishments, industrial consumers, and CNG vehicles.
Alongside the quarterly results, Torrent Power declared an interim dividend of ₹15 per share for the fiscal year 2025–26. The company has designated Monday, February 16, 2026, as the record date to identify eligible shareholders for this dividend payment, which is scheduled for distribution on March 12, 2026.
Fundraising and Corporate Overview
The company's board has approved a proposal to raise up to ₹7,000 crore through the issuance of Non-Convertible Debentures in one or more tranches via private placement. This fundraising effort is part of Torrent Power's strategic financial planning.
Torrent Power, with a market capitalization of approximately ₹29,165 crore, is a key component of the broader Torrent Group, which is valued at around ₹45,000 crore. As one of India's largest power sector companies, Torrent Power maintains a comprehensive presence across the entire power value chain, encompassing generation, transmission, and distribution activities.
Stock Performance Analysis and Historical Trends
The recent share price movement reflects a broader trend of volatility for Torrent Power. After a prolonged decline that lasted nearly a year, the stock has shown signs of recovery in recent months. Over the last five months, including February, shares have recovered 22% of their value. However, they still trade 31% below their record highs.
Between October 2024 and September 2025, the stock remained under considerable pressure, losing 40% of its value during this period. Despite these recent challenges, the broader historical perspective reveals impressive long-term performance. Over the last two years, Torrent Power shares have delivered multi-bagger returns of 210%, while over a five-year period, returns have reached an impressive 325%.
Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions regarding Torrent Power or any other securities.
