Torrent Power
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Torrent Power is strategically positioned for growth, with management emphasizing a dual-track approach to expand its renewable energy capacity while enhancing its thermal generation capabilities. The company's ambitious plans, including a target of 10 GW in renewables by 2030 and a significant pumped storage hydro project, are expected to drive a robust EBITDA/APAT CAGR of 17%/7% over the next few years. However, execution risks related to large capital projects and regulatory scrutiny present challenges. Vista's financial outlook reflects stable revenue growth and margins, supported by a strong demand for power in India and disciplined capital allocation. The anticipated commissioning of key projects will bolster revenue stability, although competitive pressures may impact margins. The industry context remains favorable, with ongoing investments in electricity generation and transmission, despite potential regulatory changes. Over the next 12-24 months, key opportunities include the successful execution of the project pipeline and the integration of green technologies, while watchpoints include execution risks and regulatory dynamics that could affect profitability
Why We Like This Stock
- Ambitious plans to expand renewable energy capacity to 10 GW by 2030, enhancing long-term growth prospects
- Strong management confidence in achieving a robust EBITDA/APAT CAGR of 17%/7%, driven by both renewable and thermal segments
- Strategic focus on operational excellence and disciplined capital allocation supports revenue stability
Things To Watch Out For
- Execution risks related to large capital projects could delay revenue generation and impact margins
- Regulatory scrutiny regarding cost-reflective tariffs and emission compliance may introduce volatility in earnings
- Competitive pressures in the power sector could challenge profit margins despite stable revenue growth
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 27,183 | 29,165 | 28,966 | 28,538 | 30,877 |
| Profit Before Tax (Cr.) | 2,472 | 3,047 | 3,317 | 2,955 | 3,238 |
| PBT Margin | 9.1% | 10.4% | 11.5% | 10.4% | 10.5% |
| Net Profit (Cr.) | 2,056 | 2,484 | 2,565 | 2,272 | 2,438 |
| Earnings Per Share | 39.6 | 47.9 | 49.8 | 44.2 | 48.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Motilal Oswal | ► Neutral | 1,270 | 30-Sep-2026 |
| Jeffries | ▲ Buy | 1,780 | 11-Sep-2026 |
| JMFinancials | ▼ Reduce | 1,359 | 09-Jun-2026 |
| Geojit Financials | ▲ Buy | 1,638 | 03-Jun-2026 |
| Elara Capital | ▼ Reduce | 1,385 | 14-May-2026 |
Company Overview
Show Company Profile
Torrent Power Limited, together with its subsidiaries, engages in the generation, renewables, and transmission and distribution of electricity in India. The company owns thermal power plants with a generation capacity of 6,092 megawatts; renewable with a generation capacity of 5,952 megawatts peak; pumped storage project (PSP) develops 3,000 megawatts / 18,000 megawatt-hour PSP project; explores and evaluates various opportunities for supply of green hydrogen and green ammonia; and operates 952 ckm 400 kV and 388 ckm of 220 kV transmission line projects, including Khavda and Solapur projects. It also distributes electricity in the cities of Ahmedabad, Gandhinagar, Surat, Dahej, Dholera, Mandal Bechraji, Dadra and Nagar Haveli, and Daman and Diu covering an area of 2,050 square kilometers; and operates as a franchisee for electricity distribution in the cities of Bhiwandi, Agra, and Shil-Mumbra-Kalwa covering an area of approximately 1,007 square kilometers. In addition, the company is involved in the manufacture and supply of power cables and ancillary services; generates power from renewable energy sources comprising wind and solar; and trading of regassified liquified natural gas. The company was incorporated in 2004 and is based in Ahmedabad, India. Torrent Power Limited is a subsidiary of Torrent Investments Limited.