Torrent Power Net Profit Plunges 24.7% Amid 12.5% Revenue Decline

06 Aug 2025

Torrent Power Limited reported on Tuesday a 24.7% decline in its net profit for the first quarter of the current financial year (Q1 FY26), posting Rs 731 crore compared to Rs 972 crore in the same period last year (Q1 FY25). Revenue from operations declined by 12.5% to Rs 7,906 crore, down from Rs 9,033 crore in the previous year, according to its stock exchange filing.

The company’s operating performance declined, with EBITDA falling 20.2% to Rs 1,483 crore from Rs 1,857 crore in the previous year, and the EBITDA margin contracting to 18.7% from 20.6%. For the quarter, total comprehensive income (TCI) declined to Rs 739 crore, compared to Rs 993 crore recorded in the corresponding period of the previous year.

Torrent Power reported that its performance was impacted by reduced power demand resulting from the early onset of the monsoon, coupled with higher gas prices, which limited the benefits from gas-based power generation. However, the company emphasised that its core business remains strong, and after accounting for these factors, TCI’s performance was on par with last year’s levels.

The renewable energy segment delivered strong performance this quarter, driven by new solar capacity additions and favourable wind conditions that boosted the plant load factor (PLF). The distribution business also achieved higher profitability, excluding one-time tariff income from the previous year, due to improved operational efficiency.

Torrent Power expressed confidence in effectively managing the cyclical fluctuations of the sector, bolstered by its diversified operations. The results were announced after market hours. On Tuesday, Torrent Power shares closed at Rs 1,312 on the Bombay Stock Exchange (BSE), slipping by Rs 0.60, or 0.046%.

Torrent Power is one of India’s premier power companies, engaged in the generation, transmission, and distribution of electricity, alongside the manufacturing of power cables. It plays a pivotal role in the country’s power sector, particularly in Gujarat, where it holds a significant presence in power generation, distribution, and manufacturing. The company operates across the entire power supply chain and is renowned for its operational efficiency and strong customer focus.