This article first appeared on GuruFocus .
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Reported PBT:INR805 crores, up from INR630 crores in the previous year, a 28% increase.
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Adjusted PBT:INR805 crores, up from INR553 crores in the previous year, a 46% increase.
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Thermal Generation Business Contribution:Increased by INR163 crores.
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Distribution Business Contribution:Increased by INR106 crores.
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Aggregate Installed Generation Capacity:5 GW as of December 31, 2025.
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RE Pipeline Increase:500 megawatts during the quarter.
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Release Date: February 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Reported PBT for the quarter increased by 28% to INR805 crores compared to the previous year.
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Thermal Generation Business saw a significant contribution increase of INR163 crores due to favorable regulatory orders.
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Distribution business contribution increased by INR106 crores, aided by improved T&D losses and higher ROE and ROCE.
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The company has a robust project pipeline, including 4 GW of renewable capacity and 3 GW of storage capacity.
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CapEx for renewable projects showed a significant increase, with INR1,750 crores spent in Q3 alone.
Negative Points
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Lower contribution from the sale of merchant power and LNG by INR75 crores.
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Higher expenses due to foreign currency fluctuations and other factors increased by INR35 crores.
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Demand growth was weak in the last 15 days, attributed to extended monsoons and strong demand in the previous year.
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Challenges in the renewable sector due to transmission issues and wind execution difficulties.
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The company faces potential delays in project execution due to transmission constraints.
Q & A Highlights
Q: Torrent Power has expanded across generation, distribution, and renewables. How will you balance investing in new renewable projects with keeping debt and margins under control? A: Saurabh Mashruwala, CFO: Our net debt-to-equity ratio is currently comfortable at 0.40, and we plan to maintain financial discipline while improving our return on equity and return on capital employed as we implement our project pipeline.
Q: What financial disciplines do you use to protect returns amidst costs and regulatory changes? A: Saurabh Mashruwala, CFO: We typically finance new projects at a 70-30 or 75-25 debt-equity ratio. We are mindful of our financial metrics, ensuring our leverage ratios remain comfortable compared to industry peers.
Q: Can you explain the regulatory benefits contributing to the quarter's performance? A: Saurabh Mashruwala, CFO: We received favorable regulatory orders that added approximately INR270 crores to our bottom line. This was related to one of our gas-based generation projects.
Q: What is the status of your renewable projects and CapEx? A: Saurabh Mashruwala, CFO: There has been a pickup in CapEx, with INR1,750 crores spent on renewable projects in Q3. We plan to commission about 1.2 to 1.5 gigawatts of renewable capacity next year.
Q: How do you view the recent decline in power demand, and what is your outlook? A: Saurabh Mashruwala, CFO: The recent decline is seen as an aberration due to last year's strong demand and current monsoon impacts. We expect demand to grow in line with GDP growth, around 6.5% to 7%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
