Torrent Power posts 11% drop in Q1 profit amid higher finance costs

Revenue rose 3%, while higher finance costs and LNG supply disruptions weighed on earnings. The company completed the acquisition of Nabha Power during the quarter

Torrent Power on Monday reported an 11 per cent decline in its net profit to Rs 662 crore in the first quarter of FY27, from Rs 742 crore in the corresponding period last year. Its revenue from operations grew 3 per cent to Rs 8,124 crore from Rs 7,906 crore a year earlier.

 

“The company delivered Ebitda growth of 2 per cent during the quarter, despite a challenging operating environment marked by geopolitical disruptions, which affected LNG supplies and, consequently, the performance of its thermal power plants,” the company said.

 

It added that the June quarter was marked by improved operational performance across the company's distribution businesses and renewable portfolio, driven by higher plant load factors and contributions from projects commissioned during the previous year. Additionally, higher finance costs resulting from increased borrowings for investments in under-construction assets weighed on performance.

 

 

The company has an installed generation capacity of 6.6 gigawatt peak (GWp), comprising 2.7 GW of gas-based capacity, 2.1 GWp of renewable capacity and 1.8 GW of coal-based capacity. Renewable projects of about 4.2 GWp, pumped storage capacity of 3 GW and coal-based power capacity of 1.6 GW are under development.

 

During the quarter, Torrent Power acquired 100 per cent of the equity shares and convertible instruments of Nabha Power Limited (NPL) for a consideration of Rs 3,632 crore, making NPL a wholly owned subsidiary. NPL operates a 2x700 MW coal-based supercritical thermal power plant in Punjab and supplies power under long-term power purchase agreements with Punjab State Power Corporation Limited.