Torrent Power Q1 profit plunges 26% to ₹742 crore, hurt by lower power demand and gas prices

Torrent Power has 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.

The company’s Ebitda fell 20.2% to ₹1,483 crore in the first quarter of this fiscal year, compared to ₹1,857 crore last year. The Ebitda margin, on the other hand, fell to 18.7% from 20.6% year-on-year. 

Torrent Power’s revenue has risen 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.

While renewable energy and power distribution are immediate growth drivers for Torrent Power, it is also actively evaluating opportunities in pumped hydro, green hydrogen, and energy storage. The focus is on building large renewable energy capacity, expanding from the current 1,236 MW (with another 3,000 MW under construction). The medium-term goal is to reach 5 GW in renewables by FY27 or FY28, and the long-term aim is to hit 10 GW by FY32 with an investment of ₹57,000 crore. 

The group’s energy diversification plans also include setting up 5–8 GW of pumped hydro storage (PHS) projects, entailing an investment of ₹25,000–₹35,000 crore. Torrent Power is building a green hydrogen facility in Gorakhpur, Uttar Pradesh, to blend hydrogen into Torrent Gas’ distribution network as a pilot project. It also plans to set up a 100,000-tonnes-per-annum green ammonia production facility with an investment of ₹7,200 crore.