Torrent Power Ltd on Tuesday reported a 69 per cent year-on-year (y-o-y) decline in consolidated net profit at ₹318 crore for the fourth quarter of FY26, while the company announced a final dividend of ₹5 per share and approved plans to raise up to ₹10,000 crore through non-convertible debentures (NCDs).
The Gujarat-based integrated power utility company reported a 0.7 per cent decline in revenue from operations to ₹6,406 crore during the quarter, impacted largely by weaker performance in the generation business. Revenue from the generation segment declined 24 per cent during the quarter amid challenges in the gas-based power business, while transmission and distribution revenue rose 5 per cent and renewable energy revenue increased 8 per cent.
Deference Impact
For the full financial year FY26, consolidated revenue declined 0.6 per cent to ₹28,966 crore, while net profit fell 19 per cent to ₹2,416 crore. The company said annual profitability was also impacted by the absence of a one-time non-cash reversal of deferred tax liabilities amounting to ₹637 crore recorded in FY25. Adjusted for this impact, total comprehensive income for FY26 improved by ₹92 crore, supported by better operational performance in distribution and renewable energy businesses.
Torrent Power’s board recommended a final dividend of ₹5 per equity share for FY26. Combined with the interim dividend of ₹15 per share already paid during the fourth quarter, the total dividend for FY26 stands at ₹20 per share, or 200 per cent. The company also approved fundraising of up to ₹10,000 crore through issuance of non-convertible debentures in one or more tranches via private placement.
Volatile Markets
Commenting on the performance, Jinal Mehta, vice chairman and managing director of Torrent Power, said FY26 marked a significant expansion phase for the company as it accelerated investments across renewable, thermal and storage businesses. The company committed over ₹30,000 crore towards expanding thermal power capacity by 3 GW, including a new 1,600 MW project in Madhya Pradesh and the acquisition of the 1,400 MW Nabha Power plant. Torrent Power also strengthened its gas-based portfolio through long-term LNG partnerships with global firms such as BP and JERA to improve fuel security.
In the distribution business, the company said it achieved distribution losses of 2.33 per cent, which it claimed was the lowest in the country, while being ranked first nationally among 65 discoms. The company added that despite near-term uncertainties arising from tensions in West Asia and volatility in energy markets, it remains optimistic on long-term growth prospects for India’s power sector.
On Tuesday, shares of the company closed at ₹1,597.55 apiece on the BSE, down 4.84 per cent from the previous close.