Synopsis:
Torrent Power received an LoA to develop a 2×800 MW ultra‑supercritical coal plant in Madhya Pradesh under a long‑term PPA, with ₹22,000 crore capex and coal via SHAKTI.
Known for integrated power generation and distribution, this utility is set to unveil a major expansion with a greenfield 1,600 MW ultra‑supercritical coal project in Madhya Pradesh, backed by a huge outlay and a 25‑year PPA, which has propelled the stock on award confirmation.
Torrent Power Limited’s stock, with a market capitalisation of Rs. 62,987 crores, rose to Rs. 1,311.90, hitting a high of up to 6.9 percent from its previous closing price of Rs. 1,227.30. However, the stock over the past year has given a negative return of 29.3 percent.
Investment Plan
Torrent Power will build a new 1,600 MW coal-based ultra-supercritical power plant in Madhya Pradesh after receiving a Letter of Award from MP Power Management Company Limited, with a 25-year PPA at a tariff of Rs. 5.829/kWh, and the project targets commissioning within 72 months with coal arranged under the SHAKTI policy.
This Rs. 22,000 crore investment, Torrent Group’s single largest in the power sector, will supply the entire capacity to MPPMCL, use higher-efficiency technology to lower emissions compared to conventional plants, and is expected to create 8,000–10,000 jobs during construction and about 1,500 during operations.
Set up on a DBFOO model, the plant comprises two 800 MW units and supports India’s plan to add 80 GW of coal-based capacity by 2032 to strengthen base-load supply and grid stability.
With this addition, Torrent Power’s total locked-in generation capacity rises to about 9.6 GWp alongside 3 GW of pumped storage capacity, reinforcing the company’s presence across generation, transmission, and distribution in multiple states.
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Power Generation
Torrent Power, a Rs. 29,165 crore integrated utility of the ~Rs. 45,000 crore Torrent Group, operates across generation, transmission, and distribution with a total locked‑in generation portfolio of about 9.6 GWp and 3 GW of pumped‑storage capacity. The total installed generation capacity of 4.9 GWp includes 2.7 GW gas‑based, 1.8 GWp renewable, and 362 MW coal.
Q1 Financial Highlight
Revenue fell 12.5% YoY to Rs. 7,906 crore in Q1FY26 from Rs. 9,034 crore but rose 22.5% QoQ from Rs. 6,456 crore, reflecting a sequential rebound despite annual softness. Three-year sales CAGR stands at 27%, indicating sustained multi-year expansion even as the latest YoY comps remain negative.
Profit declined 25.5% YoY to Rs. 742 crore from Rs. 996 crore and 31.1% QoQ from Rs. 1,077 crore, signalling margin pressure versus both periods. Nevertheless, a three-year profit CAGR of 48% and an ROE 3-year CAGR of 18% show strong long-term earnings compounding and capital efficiency.
Written By Fazal Ul Vahab C H
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