Q4 2026 Torrent Power Ltd Earnings Call Transcript
Key Points
- Torrent Power Ltd (BOM:532779) reported a significant reduction in regulatory gap by almost INR 800 crores, attributed to better operational efficiency and lower power purchase costs.
- The company has a robust investment plan with a focus on renewable energy, planning to add 4GW of capacity with a CapEx of INR 28,000 crores.
- The regulatory changes have allowed for an increase in Return on Equity (ROE) from 14% to potentially 15%, depending on performance-based incentives.
- Torrent Power Ltd (BOM:532779) has secured gas cargoes to meet summer demand, ensuring availability despite global supply challenges.
- The company is actively pursuing new projects, including a 1.6GW thermal project and a 3GW pump storage hydro project, indicating strong future growth potential.
- The company's Profit Before Tax (PBT) for the quarter decreased by INR 72 crores compared to the same quarter last year, partly due to non-recurring provisions.
- There was a decrease in contribution from the thermal generation business by INR 90 crores, mainly due to additional O&M expenses and reversal of provisions from the previous year.
- The renewable generation segment saw a reduction in contribution by INR 20 crores due to the expiration of generation-based incentives.
- Gas prices have increased, impacting the cost structure, although availability is not a concern.
- The company faces challenges in the renewable segment with curtailment issues and the need for timely execution of transmission lines for new projects.
Ladies and gentlemen, good day, and welcome to Torrent Power Limited Q4 FY '26 earnings conference call. From the management team, we have with us Mr. Saurabh Mashruwala, Executive Director and CFO; Mr. Rishi Shah, GM Finance; and Mr. Jayprakash Khanwani, AGM Finance.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Saurabh Mashruwala. Thank you, and over to you, sir.
Thank you so much. Good morning to all of you, and thank you for joining the earnings call of Torrent Power for Q4 FY '26. First, I will take you through the performance of the quarter, after which we would welcome questions. We'll the performance of the company at, and then I will take you through the tax expenses separately.
PBT for the quarter stood at INR547 crores as compared to INR619 crores in the quarter of last year, a reduction of INR72 crores. PBT for the current quarter includes nonrecurring provisions of INR171 crores arising due
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