Torrent Power Limited announced a definitive agreement to acquire 100% equity stake and convertible instruments in Nabha Power Limited (NPL) from L&T Power Development Limited. The transaction values NPL at an Enterprise Value of INR 6,889 Crores. This acquisition will immediately increase Torrent’s operational capacity from ~5 GW to 6.4 GW, marking its entry into the high-growth power market of Northern India.
Torrent Power Acquires 1,400 MW Thermal Asset
On February 16, 2026, Torrent Power Limited confirmed it has entered into a definitive agreement with L&T Power Development Limited (L&TPDL), a subsidiary of Larsen & Toubro (L&T), to acquire Nabha Power Limited (NPL). The transaction, valued at an Enterprise Value of INR 6,889 Crores, involves acquiring 100% of the equity stake and convertible instruments in NPL.
Strategic Rationale and Capacity Expansion
Nabha Power Limited (NPL) operates a 1,400 MW (2 X 700 MW) supercritical coal-fired thermal power plant at Rajpura, Punjab. This asset is strategically located in a power-deficit region and reported revenues of INR 4,866 crores and Adjusted EBITDA of INR 1,153 crores in FY 2025. The plant boasts sustained availability levels above 90%.
Upon closing, Torrent’s total operational capacity will surge from approximately 5 GW to 6.4 GW. Chairman Samir Mehta highlighted that this acquisition marks Torrent’s entry into Northern India’s high-growth power market, adding a high-quality, best-in-class operating asset supported by fully contracted cash flows. He stressed the move is value accretive from day one and avoids development or execution risk.
About Nabha Power Limited (NPL)
NPL’s supercritical plant was commissioned in 2014 under Case II Competitive Bidding Guidelines and operates under a 25-year Power Purchase Agreement (PPA). It benefits from long-term Fuel Supply Agreements (FSA) with SECL and NCL. The plant has demonstrated strong operational performance, achieving a Plant Availability Factor (PAF) of 95.36% in FY25 and a Plant Load Factor (PLF) of 94.33% in July 2024, ranking 2nd among all thermal power plants above 500 MW in India.
Context on Torrent Power
Torrent Power, a utility of the ₹45,000 Crs Torrent Group, currently possesses an aggregate installed generation capacity of 5,039 MWp, comprising gas-based, renewable, and coal-based sources. With projects under development, the total planned capacity approaches ~10.64 GWp in generation. Furthermore, the company distributes nearly 31 billion units to around 4.21 million customers across major Indian cities.
L&T’s Perspective
S N Subrahmanyan, Chairman & Managing Director of L&T, stated that the divestment of NPL aligns with L&T’s strategic objective of unlocking value to strengthen its core businesses, positioning the group to create long-term value for its stakeholders.
Source: BSE
