Torrent Power Limited Earnings Summary — Q4 FY2026
Torrent Power Reports Sharp Net Profit Decline in Q4 Amid Rising Costs and Higher Tax Outgo
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 26.8% sequentially in Q1 FY2027.
- Revenue of ₹8,124 Cr is 2.8% higher year-on-year.
- Revenue has compounded at 10.2% annualised over the last 10 quarters.
- Net profit of ₹639 Cr is 12.7% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 19.2% annualised across the period.
- Operating margin stands at 18.9% in Q1 FY2027.
- Operating margin expanded by 17 bps year-on-year.
- Over the last two years operating margin has contracted by 164 bps.
- PBT margin is 11.4%.
- Expense growth of 2.5% remained below revenue growth of 2.8%.
- Operating profit of ₹1,538 Cr is 3.7% higher year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 61/100 (Healthy) on the latest 10 quarters.
- Business momentum is broadly stable quarter to quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 8,124 | 6,406 | 6,778 | 7,876 | 7,906 | 6,456 | 6,499 | 7,176 | 9,034 | 6,529 |
| Expenses | Improving | 6,586 | 5,257 | 5,375 | 6,370 | 6,423 | 5,326 | 5,388 | 5,969 | 7,176 | 5,420 |
| Operating Profit | Improving | 1,538 | 1,149 | 1,403 | 1,506 | 1,483 | 1,130 | 1,112 | 1,207 | 1,858 | 1,109 |
| Operating Margin | Stable | 18.9% | 17.9% | 20.7% | 19.1% | 18.8% | 17.5% | 17.1% | 16.8% | 20.6% | 17.0% |
| Other Income | Stable | 81 | 71 | 69 | 78 | 105 | 114 | 172 | 125 | 76 | 97 |
| Interest | Improving | 293 | 252 | 255 | 216 | 212 | 236 | 276 | 272 | 260 | 233 |
| Depreciation | Stable | 400 | 421 | 413 | 389 | 390 | 389 | 378 | 371 | 359 | 355 |
| Profit Before Tax | Volatile | 925 | 547 | 805 | 979 | 985 | 619 | 630 | 689 | 1,315 | 617 |
| Tax | Volatile | 263 | 216 | 150 | 238 | 244 | -458 | 141 | 193 | 318 | 170 |
| Net Profit | Volatile | 639 | 318 | 643 | 724 | 731 | 1,060 | 476 | 481 | 972 | 430 |
| Net Margin | Volatile | 7.9% | 5.0% | 9.5% | 9.2% | 9.3% | 16.4% | 7.3% | 6.7% | 10.8% | 6.6% |
Key Takeaways
- Net profit witnessed a steep 69% YoY decline, largely due to a sharp normalization from a tax-assisted high base in the prior-year quarter (Q4 FY2025).
- Revenue for the quarter remained relatively stagnant at 6,406 crore, showing a slight 0.77% decline compared to Q4 FY2025.
- Operating Profit Margin (OPM) returned to the historical range of 18% after spiking to 21% in the preceding quarter.
- The company's absolute borrowing level surged significantly to 13,971 crore by year-end, up from 8,840 crore in FY2025, to fund expansion.
- Depreciation and interest costs have both trended upward as the company capitalizes its renewable energy infrastructure.
- Torrent Power continues its strategic pivot with a massive 3.9 GW renewable pipeline and entry into Pumped Storage Projects.
Management Guidance
The company remains focused on migrating from coal-heavy utility to a diversified green energy player, targeting high-growth hydrogen and grid balancing verticals.
Sentiment Shift
Deteriorating
While the long-term outlook remains strong, the current quarter shows significant pressure on bottom-line figures due to rising debt costs and tax normalization.
Outlook
The company is transitioning through a high-CAPEX cycle (Rs 7454 Cr in FY26) which will eventually stabilize once the 3.9 GW renewable pipeline and PSP projects become operational and generate regulated cash flows.
From the Annual Report (Key Quotes)
“Resilient business model covering generation, transmission, and distribution.”
“Successfully transitioned from a coal-heavy utility to a diversified player with a massive 3.9 GW renewable pipeline.”
“Management avoids the high-leverage traps common in the power sector.”
Official Quarterly Documents
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This summary is AI-generated from Torrent Power Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.