This article first appeared on GuruFocus .
Release Date: November 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Torrent Power Ltd ( BOM:532779 ) reported a significant increase in PBD for the quarter, up by 42% compared to the same period last year.
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The company saw a substantial contribution from its thermal generation business, with an increase of 293 crores due to better merchant power sales.
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The licensed distribution business benefited from improved ROE and ROCE due to asset capitalization and new tariff regulations.
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The company successfully commissioned India's largest green hydrogen natural gas blending initiative within the city gas distribution sector.
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Torrent Power Ltd ( BOM:532779 ) has a robust pipeline with 3.6 gigawatts of renewable capacity and 3 gigawatts of pump storage capacity in development.
Negative Points
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The renewable generation segment saw a reduction in contribution by 20 crores due to lower PLF from existing wind power plants.
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Higher O&M expenses and non-cash variations negatively impacted the financial performance.
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The capital cost for the newly won coal-based power plant is on the higher side, raising concerns about cost efficiency.
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The company faces challenges with lower wind PLF due to extended monsoon conditions affecting wind power generation.
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There is uncertainty regarding merchant sales in the upcoming quarters, as it depends on market dynamics and peak demand.
Q & A Highlights
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Warning! GuruFocus has detected 5 Warning Signs with BOM:532779.
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Q: This quarter showed robust performance, partly due to merchant sales under a short-term project signed in March. Are there still sales in the third quarter under this agreement? A: Most of the supply under the contract was completed in Q2, with minimal remaining for Q3. (Respondent: Executive Director and CFO)
Q: Can you provide a breakdown between merchant sales and LNG sales during the quarter? A: The majority of revenue came from merchant sales, with minimal contribution from LNG sales. (Respondent: Executive Director and CFO)
Q: Regarding the coal-based power plant won this quarter, the capital cost seems high. Can it be reduced, and what are the fixed and variable costs quoted in the bid? A: The current cost reflects increased equipment prices. Fixed cost is approximately ?4.22, and variable cost is pass-through. (Respondent: Executive Director and CFO)
Q: What are the terms of the 500 MW STRE project from PPID, including solar, wind, and battery specifications? A: The project includes 350 MW solar, 150 MW wind, and 100 MW battery with 4.5-hour storage, at a tariff of ?14.87. (Respondent: Executive Director and CFO)
Q: What is the expected commissioning date for the MPE project thermal plant? A: The first unit is expected 66 months from the PPA date, and the second unit 72 months from the PPA date. (Respondent: Executive Director and CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
