Torrent Power Limited Earnings Summary — Q4 FY2026

# “Torrent Power Limited Q4 FY '26 Earnings Conference Call”

# May 13, 2026

## MANAGEMENT: MR. SAURABH MASHRUWALA – DIRECTOR AND CHIEF FINANCIAL OFFICER – TORRENT POWER LIMITED

## MR. RISHI SHAH – GENERAL MANAGER, FINANCE – TORRENT POWER LIMITED

## MR. JAYPRAKASH KHANWANI – ASSISTANT GENERAL MANAGER FINANCE – TORRENT POWER LIMITED

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_Torrent Power Limited_ _May 13, 2026_

**Moderator:** 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, Director and CFO; Mr. Rishi Shah, GM Finance; and Mr. Jayprakash Khanwani, AGM Finance.

As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. 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.

**Saurabh Mashruwala:** Thank you so much. Good morning to all of you, and thank you for joining 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 explain the performance of the company at PBT level first, and then I will take you through the tax expenses separately.

Reported PBT for the quarter stood at INR547 crores as compared to INR619 crores in the corresponding quarter of last year, a reduction of INR72 crores. PBT for the current quarter includes nonrecurring provisions of INR171 crores arising due to capping of power purchase cost for UNOSUGEN power projects in the FY 2024-25 true-up order. A similar restriction had been imposed in earlier year as well, which was contested by us and subsequently approved in our favour. As a result, a credit of INR273 crores was recognized in P&L in the previous quarter of the current year.

Considering prudence, provision has been recognized in the current quarter. Based on the pastprecedent , we are reasonably certain that the current matter will be also approved in our favour. Adjusted for the one-offs, PBT for the quarter stood at INR718 crores as compared to INR619 crores in the comparable quarter of last year, an increase of INR99 crores, that is 16% on an adjusted basis.

Tax expenses were lower during the corresponding quarter of last year due to noncash reversal of deferred tax liabilities of INR637 crores and the deferred tax liabilities is not comparable. Business-wise, factors contributing to the performance are as follows: first, receipt of favorable orders from the regulators approving the carrying cost of previous year of INR186 crores, receipt of incentive for installation of solar rooftop in Ahmedabad and Surat by INR58 crores, reduction in T&D saving in license distribution units due to significant reduction in normative parameters by regulators, partially offset by improved T&D losses in distribution franchisee business by INR15 crores.

\`Additionally, the contribution from the license distribution business was supported by the increase in ROE and ROCE on account of capitalization of assets and higher rate of return on equity as per the new tariff regulations and other incentive increase of INR15 crores. We would like to take this opportunity to appraise certain pertinent changes in the tariff regulations with respect to allowance of ROE and ROCE on assets capitalized. There are two situations. One, of course, is for assets capitalized on or after 1st April '25. Returns are now allowed on a return on capital employed basis, wherein the underlying return on equity is permitted at a base ROE of

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_Torrent Power Limited_ _May 13, 2026_

13%, which can go up to 15% based on the achievement of incentive milestone stipulated. This is compared to the 

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