Torrent Power Ltd (BOM:532779) Q4 2026 Earnings Call Highlights: Navigating Challenges with ...

This article first appeared on GuruFocus .

• PBT (Profit Before Tax):INR547 crores, down from INR619 crores in the same quarter last year.

• Adjusted PBT:INR718 crores, compared to INR790 crores last year, excluding nonrecurring provisions.

• Tax Expenses:Lower due to noncash reversal of deferred liabilities of INR637 crores in the previous year.

• Regulatory Gap Reduction:Reduced by INR800 crores due to better operational efficiency and lower power purchase costs.

• Thermal Generation Contribution:Decreased by INR90 crores, affected by additional O&M expenses and reversal of provisions.

• Renewable Generation Contribution:Reduced by INR20 crores due to generation-based incentive income adjustments.

• Installed Generation Capacity:5.1 gigawatts as of March 31, 2026, including 2.7 GW gas, 2 GW renewable, and 362 MW gas capacity.

• ROE (Return on Equity):Base ROE of 13%, potentially up to 15% based on incentive milestones, compared to a fixed 14% previously.

• Warning! GuruFocus has detected 10 Warning Signs with BOM:532779.

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Release Date: May 13, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Torrent Power Ltd ( BOM:532779 ) reported a significant reduction in regulatory gap by almost INR 800 crores, attributed to better operational efficiency and lower power purchase costs.

• The company has a robust investment plan with a focus on renewable energy, planning to add 4GW of capacity with a CapEx of INR 28,000 crores.

• The regulatory changes have allowed for an increase in Return on Equity (ROE) from 14% to potentially 15%, depending on performance-based incentives.

• Torrent Power Ltd ( BOM:532779 ) has secured gas cargoes to meet summer demand, ensuring availability despite global supply challenges.

• The company is actively pursuing new projects, including a 1.6GW thermal project and a 3GW pump storage hydro project, indicating strong future growth potential.

Negative Points

• The company's Profit Before Tax (PBT) for the quarter decreased by INR 72 crores compared to the same quarter last year, partly due to non-recurring provisions.

• There was a decrease in contribution from the thermal generation business by INR 90 crores, mainly due to additional O&M expenses and reversal of provisions from the previous year.

• The renewable generation segment saw a reduction in contribution by INR 20 crores due to the expiration of generation-based incentives.

• Gas prices have increased, impacting the cost structure, although availability is not a concern.

• The company faces challenges in the renewable segment with curtailment issues and the need for timely execution of transmission lines for new projects.