Power stock in focus after acquiring 100% stake in Nabha Power from L&T Group for ₹6,889 Cr

Synopsis: With a market cap of more than Rs 74,000 Crore Torrent Power saw its stock in the spotlight after announcing a Rs 6,889 crore acquisition of Nabha Power from L&T Group. The company stock has delivered a strong compounded return of 42 percent over the last three years.

Shares of an integrated power utility engaged in electricity generation, transmission, and distribution were in focus after it announced the acquisition of Nabha Power from the L&T Power Development Limited for Rs 6,889 crore.

With a market cap of about Rs 74,000Cr, Torrent Power Ltd saw its stock hit an intraday high of Rs 1477 which is almost 1 percent higher than the previous close of Rs 1463. The company stock has given a compounded return of 42 percent in the last three years.

News

Torrent Power Limited has entered into a definitive agreement with L&T Power Development Limited to acquire 100 percent equity and convertible instruments in Nabha Power Limited for an enterprise value of Rs 6,889 crore. The acquisition expands Torrent’s thermal generation footprint, raising operational capacity from nearly 5 GW to 6.4 GW.

Nabha Power operates a 1,400 MW supercritical coal-fired plant in Punjab, generating Rs 4,866 crore revenue and Rs 1,153 crore adjusted EBITDA in FY25. The plant maintains over 90 percent availability, long-term PPAs, secure fuel supply, and scalable infrastructure, making the deal value-accretive and strengthening Torrent’s growth strategy.

Current Capacity

Torrent Power’s total installed capacity is 5,039 MWp, led by gas-based power at 2,730 MWp, which accounts for 54 percent of the total capacity. This is followed by solar energy at 1,026 MWp, contributing 21 percent, wind power at 921 MWp, forming 18 percent, and coal-based capacity of 362 MWp, making up the remaining 7 percent.

Revenue Mix

In the total revenue of Rs 34,425 crore of the previous fiscal year, Torrent Power saw Transmission and Distribution leading the breakdown at Rs  25,178 crore, contributing 73 percent. This was followed by Generation at Rs  8,181 crore, accounting for 24 percent, while Renewables contributed Rs 1,066 crore, forming the remaining 3 percent of total revenue.

Business & Financial Overview

Incorporated in 1996 and headquartered in Ahmedabad, Gujarat, Torrent Power, a key company within the Rs 29,165 crore Torrent Group, is among India’s leading integrated power utilities, operating across the entire value chain of generation, transmission, and distribution. The company supplies nearly 31 billion units of electricity annually to about 4.21 million consumers across major cities in Gujarat, Maharashtra, and Uttar Pradesh.

In the latest quarter the company saw a YoY revenue growth of 4 percent, going from Rs 6,499 Cr in Q3FY25 to Rs 6,778 Cr in Q3FY26, while the QoQ went down by 14 percent from Rs 7,876 Cr in Q2FY26. The YoY Net Profits growth is at 34 percent, going from Rs 489 Cr in Q3FY25 to Rs 655 Cr in Q3FY26, while the QoQ fell by 12 percent from Rs 742 Cr in Q2FY26.

The company has a 3 year sales CAGR of 27 percent, while the TTM is at negative 1 percent. The company’s 3 year profit CAGR is at 48 percent, while the TTM number is at 34 percent. The company also has a ROCE of 16 percent and a ROE of 19 percent.

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