Torrent Power buys 49% stake in Newzone India, 100% in Newzone Power for ₹211 cr

Torrent Power has acquired 11,95,110 equity shares of Newzone India (NZIPL) and 30,00,000 equity shares Newzone Power Projects, the holding company of NZIPL (NZPPPL), for ₹211 crore, according to an exchange filing.

“The company has acquired 11,95,110 equity shares of Newzone India Private Limited (NZIPL) and 30,00,000 equity shares Newzone Power Projects Private Limited, holding company of NZIPL (NZPPPL), of face value of ₹ 10 each at a total consideration aggregating to ₹ 211 crore, representing 49% equity shares of NZIPL (51% of equity shares were already held by NZPPPL) and 100% equity shares of the NZPPPL from Sarawagi Family and related HUFs (“the Seller”) on today,” Torrent Pharma said in an exchange filing.

Torrent Power reported a 26% fall in its first-quarter net profit to ₹742 crore, which the company attributed to lower demand for power due to an early onset of monsoon, in tandem with lower gas prices, which impacted merchant gains from gas-based generation. This corresponded to a 12% drop in first-quarter revenue to ₹7,096 crore.

The company said that it witnessed improved contributions from its renewable segment in the quarter, which, in turn, was driven by solar capacity additions and favourable wind conditions, resulting in a better plant load factor. Its power purchase cost dropped 12.5% to ₹5,472 crore from the same period last year, whereas the material cost and change in inventory dropped 9.4% year-over-year to ₹261 crore.

Torrent Power’s revenue rose to ₹29,165 crore in FY25, up 7% from ₹27,183 crore in FY24, driven by gains in the power distribution business. Torrent Power’s total generation capacity is nearly 4,500 MW. It now claims to be the leading private power distributor in India, selling nearly 30 billion units to over 4.13 million customers in 12 cities. The company is also expanding its transmission business with two projects — in Khavda (Gujarat) and Solapur (Maharashtra) — involving a combined investment of ₹1,300 crore.

Shares of Torrent Power closed 0.84% up at ₹1,279.20 on the BSE on Tuesday.