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Torrent PowerNSE:TORNTPOWER -2.13%89 Return-on-Tangible-Equity is 6.98% as of Mar. 2026, which is 47% below its 10-year median of 13.18. GuruFocus rates NSE:TORNTPOWER with a GF Score™ of 89/100 and a GF Value™ of ₹1,406.19 (Fairly Valued). The stock has 5 warning signs investors should review. Among 427 Utilities - Independent Power Producers companies, Torrent Power ranks better than 76.58% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Torrent Power's annualized net income for the quarter that ended in Mar. 2026 was ₹12,728 Mil. Torrent Power's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹182,474 Mil. Therefore, Torrent Power's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.98%.
The historical rank and industry rank for Torrent Power's Return-on-Tangible-Equity or its related term are showing as below:
NSE:TORNTPOWER'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.54 Med: 13.18 Max: 21.4
Current: 13.68
During the past 13 years, Torrent Power's highest Return-on-Tangible-Equity was 21.40%. The lowest was 4.54%. And the median was 13.18%.
NSE:TORNTPOWER's Return-on-Tangible-Equity is ranked better than 76.58% of 427
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.68
vs NSE:TORNTPOWER: 13.68
Torrent Power (NSE:TORNTPOWER) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Torrent Power Return-on-Tangible-Equity Related Terms
Torrent Power Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Torrent Power's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:TORNTPOWER vs CEG, VST, NRG: Return-on-Tangible-Equity Comparison
For the Utilities - Independent Power Producers subindustry, Torrent Power's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Torrent Power Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Torrent Power's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Torrent Power's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.98% mean?
Torrent Power (NSE:TORNTPOWER) has a Return-on-Tangible-Equity of 6.98% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Torrent Power and its competitors. This is 47% below median its historical median of 13.18. Over the past decade, Torrent Power's Return-on-Tangible-Equity has ranged from 4.54 to 21.40. According to the industry distribution chart, Torrent Power ranks #100 out of 427 companies in the Utilities - Independent Power Producers industry, placing it in the top 23.4%.
Is Torrent Power's Return-on-Tangible-Equity too high?
Torrent Power's current Return-on-Tangible-Equity of 6.98% is 47% below median its 10-year median of 13.18. Over the past 10 years, this metric has ranged from a low of 4.54 to a high of 21.40. The Utilities - Independent Power Producers industry median Return-on-Tangible-Equity is 4.68. Torrent Power's value of 6.98% is 49.1% above this industry median. Based on the distribution chart, Torrent Power ranks #100 out of 427 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Torrent Power has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Torrent Power's Return-on-Tangible-Equity compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Torrent Power ranks #100 out of 427 companies for Return-on-Tangible-Equity. This places Torrent Power in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.68. Torrent Power's value of 6.98% is 49.1% above this benchmark. Historically, Torrent Power's own Return-on-Tangible-Equity has ranged from 4.54 to 21.40 over the past decade. While the company's 10-year median is 13.18 vs. the industry median of 4.68, Torrent Power has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.68, based on 427 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Torrent Power's current Return-on-Tangible-Equity of 6.98% is 49.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Torrent Power and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Torrent Power's current Return-on-Tangible-Equity is 6.98%, which is 47% below median its own 10-year median of 13.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Torrent Power stock overvalued right now?
Based on GuruFocus' analysis, Torrent Power (NSE:TORNTPOWER) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,406.19, compared to a current price of ₹1,390.50 — trading 1.1% below its estimated fair value. The current Return-on-Tangible-Equity is 6.98%, which is 47% below median its 10-year median of 13.18 and 49.1% above the Utilities - Independent Power Producers industry median of 4.68. Torrent Power's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Torrent Power (NSE:TORNTPOWER), the current Return-on-Tangible-Equity is 6.98% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Torrent Power (NSE:TORNTPOWER) Overvalued in 2026?
Based on GuruFocus' analysis, Torrent Power stock appears to be undervalued.
The current stock price of ₹1,390.50 is trading 1.1% below its estimated GF Value™ of ₹1,406.19.
GuruFocus considers Torrent Power to be Fairly Valued.
Key valuation signals for NSE:TORNTPOWER:
Return-on-Tangible-Equity: 6.98% (47% below median its 10-year median of 13.18)
GF Value™: ₹1,406.19 vs. price of ₹1,390.50 (1.1% below fair value)
Industry Position: 49.1% above the Utilities - Independent Power Producers median (#100 of 427)
No single metric tells the full story. See the NSE:TORNTPOWER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Torrent Power Ltd is an Indian utility company engaged in the business of power generation, transmission, and distribution. Both by itself and through its subsidiaries, Torrent Power operates a portfolio of gas, combined cycle, coal, wind, and solar power plants. The group's reportable segments are: Generation, Transmission and Distribution, and Renewables. The majority of its revenue is generated from the Transmission and Distribution segment, which comprises transmission and distribution business (licensed and franchisee) and related ancillary services. The Generation segment includes the generation of power from thermal sources (gas and coal) and trading of Regassified Liquified Natural Gas, and the Renewables segment includes generation of power from renewable energy sources.
89GF Score
Get the complete analysis for NSE:TORNTPOWER
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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