Torrent Power
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Torrent Power is positioned for significant growth, driven by an aggressive expansion strategy that aims to nearly double its operational capacity to 10.6 GWp, with a strong emphasis on renewable energy and green technologies. Management's confidence stems from a robust project pipeline, including a 1,600 MW Ultra-Supercritical thermal project and 5.5 GWp in renewables, alongside strategic initiatives like the Green Hydrogen production capacity under the PLI Scheme. However, the company faces challenges such as volatile gas prices and substantial capital expenditure requirements, which could impact margins and project timelines. Vista's financial outlook reflects a cautious optimism, with revenue growth recovering but margins under pressure, aligning with the company's fair valuation. The macro environment in India supports this trajectory, characterized by rising power demand and favorable liquidity conditions. Over the next 12-24 months, key opportunities include the commissioning of new projects and regulatory incentives, while watchpoints include potential delays in project execution and the impact of gas market volatility on generation costs
Why We Like This Stock
- Aggressive expansion plan to nearly double operational capacity, focusing on renewables
- Strong project pipeline with significant investments in thermal and pumped storage hydro projects
- Positive regulatory changes expected to enhance returns on equity in the distribution business
Things To Watch Out For
- Volatile gas market poses risks to gas-based generation profitability
- High capital expenditure requirements may strain financial resources and impact margins
- Potential delays in project commissioning could hinder growth expectations
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 27,183 | 29,165 | 28,966 | 28,700 | 32,225 |
| Profit Before Tax (Cr.) | 2,472 | 3,047 | 3,317 | 2,925 | 3,443 |
| PBT Margin | 9.1% | 10.4% | 1145.1% | 10.2% | 10.7% |
| Net Profit (Cr.) | 2,056 | 2,484 | 2,565 | 2,249 | 2,593 |
| Earnings Per Share | 39.6 | 47.9 | 49.8 | 43.7 | 51.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ▼ Reduce | 1,385 | 14-May-2026 |
| Geojit Financials | ▲ Buy | 1,638 | 03-Jun-2026 |
| JMFinancials | ▼ Reduce | 1,359 | 09-Jun-2026 |
| Jeffries | ▲ Buy | 1,780 | 04-Aug-2026 |
Company Overview
Show Company Profile
Torrent Power Limited, together with its subsidiaries, engages in the generation, renewables, transmission and distribution of electricity in India. The company owns thermal power plants with a generation capacity of 3,092 megawatts; solar power plants with a generation capacity of 2,319 megawatts peak; and wind power plants with a generation capacity of 2,581 megawatts. It also distributes electricity in the cities of Ahmedabad, Gandhinagar, Surat, Dadra and Nagar Haveli, Daman and Diu, Dahej, and Dholera 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. The company was incorporated in 2004 and is headquartered in Ahmedabad, India. Torrent Power Limited is a subsidiary of Torrent Investments Limited.