Torrent PowerNSE:TORNTPOWER -0.22%88 ROE % is 6.67% as of Mar. 2026, which is 49% below its 10-year median of 13.07. GuruFocus rates NSE:TORNTPOWER with a GF Score™ of 88/100 and a GF Value™ of ₹1,400.54 (Fairly Valued). The stock has 5 warning signs investors should review. Among 433 Utilities - Independent Power Producers companies, Torrent Power ranks better than 81.52% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Torrent Power's annualized net income for the quarter that ended in Mar. 2026 was ₹12,728 Mil. Torrent Power's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹190,753 Mil. Therefore, Torrent Power's annualized ROE % for the quarter that ended in Mar. 2026 was 6.67%.
The historical rank and industry rank for Torrent Power's ROE % or its related term are showing as below:
NSE:TORNTPOWER'
s ROE % Range Over the Past 10 Years
Min: 4.51 Med: 13.07 Max: 20.21
Current: 13.06
During the past 13 years, Torrent Power's highest ROE % was 20.21%. The lowest was 4.51%. And the median was 13.07%.
NSE:TORNTPOWER's ROE % is ranked better than 81.52% of 433
companies
in the Utilities - Independent Power Producers industry
Industry Median: 3.8
vs NSE:TORNTPOWER: 13.06
Torrent Power (NSE:TORNTPOWER) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Torrent Power ROE % Related Terms
Torrent Power ROE % Historical Data
* Premium members only.
The historical data trend for Torrent Power's ROE % 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.
For the Utilities - Independent Power Producers subindustry, Torrent Power's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Torrent Power's ROE % distribution charts can be found below:
* The bar in red indicates where Torrent Power's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Torrent Power (NSE:TORNTPOWER) has a ROE % of 6.67% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Torrent Power and its competitors. This is 49% below median its historical median of 13.07. Over the past decade, Torrent Power's ROE % has ranged from 4.51 to 20.21. According to the industry distribution chart, Torrent Power ranks #80 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 18.5%.
Is Torrent Power's ROE % too high?
Torrent Power's current ROE % of 6.67% is 49% below median its 10-year median of 13.07. Over the past 10 years, this metric has ranged from a low of 4.51 to a high of 20.21. The Utilities - Independent Power Producers industry median ROE % is 3.80. Torrent Power's value of 6.67% is 75.5% above this industry median. Based on the distribution chart, Torrent Power ranks #80 out of 433 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 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Torrent Power's ROE % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Torrent Power ranks #80 out of 433 companies for ROE %. This places Torrent Power in the top 19% of its industry — outperforming the majority of peers. The industry median ROE % is 3.80. Torrent Power's value of 6.67% is 75.5% above this benchmark. Historically, Torrent Power's own ROE % has ranged from 4.51 to 20.21 over the past decade. While the company's 10-year median is 13.07 vs. the industry median of 3.80, 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 ROE % for an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.80, based on 433 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Torrent Power's current ROE % of 6.67% is 75.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Torrent Power and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Torrent Power's current ROE % is 6.67%, which is 49% below median its own 10-year median of 13.07. 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 ₹1,400.54, compared to a current price of ₹1,414.90 — trading 1% above its estimated fair value. The current ROE % is 6.67%, which is 49% below median its 10-year median of 13.07 and 75.5% above the Utilities - Independent Power Producers industry median of 3.80. Torrent Power's overall GF Score™ is 88/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Torrent Power (NSE:TORNTPOWER), the current ROE % is 6.67% 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 overvalued.
The current stock price of ₹1,414.90 is trading 1% above its estimated GF Value™ of ₹1,400.54.
GuruFocus considers Torrent Power to be Fairly Valued.
Key valuation signals for NSE:TORNTPOWER:
ROE %: 6.67% (49% below median its 10-year median of 13.07)
GF Value™: ₹1,400.54 vs. price of ₹1,414.90 (1% above fair value)
Industry Position: 75.5% above the Utilities - Independent Power Producers median (#80 of 433)
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.
88GF Score
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