Torrent Power Limited has received an affirmed credit rating of IND AA+/Stable for its existing non-convertible debentures and IND A1+ for its commercial paper. Additionally, a new long-term credit rating of IND AA+/Stable has been assigned to its proposed non-convertible debentures amounting to ₹4,000 crore. These ratings reflect the company’s strong operational performance in distribution and generation, supported by a healthy, diversified asset portfolio and robust management.
Rating Outlook and Financial Strength
As of April 16, 2026, India Ratings has maintained a stable outlook on Torrent Power Limited (TPL). The ratings are underpinned by the company’s regulated cost-plus business model, which allows for a stable post-tax return on equity of 14%–16%. The distribution business continues to be a major contributor, accounting for over 50% of the company’s total EBITDA.
Strategic Acquisitions and Growth
TPL is currently expanding its operational footprint through the acquisition of Nabha Power Limited, an 1,400MW coal-based thermal power plant. The deal, valued at ₹41.56 billion, is expected to be funded primarily through debt. This acquisition provides TPL with significant revenue visibility through a 25-year power purchase agreement (PPA) with the Punjab State Power Corporation Limited, which is valid until 2039.
Future Infrastructure and Capex
The company maintains a substantial under-construction portfolio, including a 1.6GW coal-based thermal plant in Madhya Pradesh and a 3GW pump storage hydro project. TPL plans a phased capital expenditure of approximately ₹650 billion–700 billion through FY31-FY32. Despite this large investment cycle, the company’s net leverage has improved, standing at 1.6x during the first half of FY26, providing necessary headroom for growth.
Operating Performance
TPL has demonstrated healthy operating metrics, with aggregate technical and commercial (AT&C) losses in its distribution areas remaining well below normative levels. Renewable energy initiatives remain a primary focus, with 4.3GW of capacity currently in various stages of development. The successful commissioning of these projects, combined with the company’s established management experience, is expected to drive long-term EBITDA growth and maintain strong credit metrics.
Source: BSE
