Torrent Power (TORNTPOWER) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw significant year-over-year growth, with PBT up 42% to INR 979 crore and total comprehensive income rising 48% to ₹730 crore, driven by higher merchant power sales, reduced finance costs, and operational excellence.

• Board approved unaudited financial results for the quarter and half year ended September 30, 2025, with compliance confirmed by statutory auditors.

• Operational excellence reflected in low distribution losses, high power availability, and strong group synergies across power generation, transmission, and distribution.

• Financials reflect the transfer of the renewable power undertaking to a subsidiary, effective April 1, 2024.

• Diversified portfolio with a focus on renewables, green technologies, and strategic expansion in thermal power.

Financial highlights

• Consolidated revenue from operations for Q2 FY26: ₹7,876 crore, up from ₹7,175.81 crore in Q2 FY25; standalone revenue: ₹6,106.26 crore, up from ₹5,287.56 crore.

• Consolidated net profit for Q2 FY26: ₹741.55 crore, up from ₹495.72 crore; standalone net profit: ₹746.16 crore, up from ₹464.13 crore.

• Revenue from operations grew 10% year-over-year in Q2 FY26; PBDIT rose 19% to ₹1,583 crore.

• Net debt to EBITDA at 1.41x and net debt to equity at 0.4x for FY25, with ROE at 18.4% and ROCE at 12.7%.

• Non-recurring credits in PBT: INR 31 crore in Q2 FY26 (favorable orders), INR 67 crore in Q2 FY25.

Outlook and guidance

• Operational capacity expected to double from ~5.0 GW to ~10.1 GW, led by robust renewable capacity addition and a target to scale up installed renewable energy capacity to ~5.4 GW.

• Merchant sales under short-term contracts were largely fulfilled in Q2; minimal impact expected in Q3.

• Strategic focus on green hydrogen, pumped storage hydro, and hybrid solutions to enhance returns and sustainability.

• Renewable capacity addition target for FY26 is 500–600 MW, with most new projects to be commissioned over the next 1.5–2 years.

• No further impairment provision required for the DGEN Mega Power Project as of September 30, 2025.