Torrent Power Limited (TORNTPOWER) AI Stock Analysis

• Market Cap: ₹677.60B
• Dividend Yield: 1.48%
• Average Volume (3M): 77.48K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.33
• Revenue Growth: -1.26%
• EPS Growth: 27.83%
• Country: IN
• Employees: 8,145
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 14.75
• Shares Outstanding: 503,903,530
• 10 Day Avg. Volume: 54,297
• 30 Day Avg. Volume: 77,484
• PEG Ratio: 0.40
• Price to Book (P/B): 4.15
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 154.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ₹1,483.00 ▲(5.64% Upside)

Torrent Power Limited's overall stock score is driven primarily by its strong financial performance, characterized by consistent revenue and profit growth, efficient cost management, and a balanced capital structure. Technical analysis suggests a short-term bullish trend, although longer-term resistance is present. The valuation indicates a moderately expensive stock, which slightly tempers the overall score. The absence of earnings call and corporate events data means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective business strategies, supporting long-term financial stability.

Operational Efficiency

Efficient cost management enhances profitability, allowing the company to maintain competitive pricing and invest in growth opportunities.

Cash Generation

Strong cash generation supports operational needs and strategic investments, ensuring financial resilience and growth potential.

Negative Factors

Free Cash Flow Conversion

Limited free cash flow conversion may restrict the company's ability to fund new projects or return capital to shareholders, impacting long-term growth.

Revenue Growth Trend

A negative revenue growth trend could signal challenges in market expansion or competitive pressures, affecting future profitability.

Debt Levels

High debt levels, even if manageable, can limit financial flexibility and increase vulnerability to interest rate changes, affecting long-term stability.

Torrent Power Limited Business Overview & Revenue Model

Company Description

Torrent Power Limited, an integrated power utility, engages in the generation, transmission, and distribution of electricity in India. The company owns thermal and renewable power plants with a generation capacity of approximately 4,110 megawatts. It also distributes electricity in the cities of Ahmedabad, Gandhinagar, Surat, and Dahej SEZ covering the total area of approximately 425 square kilometers, as well as Dholera SIR covering an area of 920 square kilometers; and operates as a franchisee for electricity distribution in the cities of Bhiwandi, Agra, and Shil-Mumbra-Kalwa covering an area of approximately 1,007 square kilometers. In addition, the company is involved in the manufacture and supply of power cables. It serves approximately 4 million customers in the states of Gujarat, Maharashtra, Uttar Pradesh, Rajasthan, Madhya Pradesh, and Karnataka, as well as operations in the union territory of Dadra and Nagar Haveli, and Daman and Diu with approximately 0.2 million customers covering 603 square kilometers. The company was incorporated in 2004 and is based in Ahmedabad, India. Torrent Power Limited is a subsidiary of Torrent Investments Private Limited.

How the Company Makes Money

Torrent Power generates revenue primarily through the sale of electricity to consumers in its licensed distribution areas and from power generation. The company operates power plants that contribute to its generation capacity, and it sells the electricity produced either directly to consumers or through power purchase agreements (PPAs) with utilities and states. Key revenue streams include retail electricity sales, which are influenced by the tariff structures set by regulatory authorities, and long-term contracts for power supply. Additionally, Torrent Power benefits from operational efficiencies that help reduce costs, and it engages in renewable energy projects to diversify its portfolio and tap into the growing demand for green energy. Partnerships with state governments and regulatory bodies also play a significant role in securing stable revenue sources.

Torrent Power Limited Financial Statement Overview

Summary

Torrent Power Limited exhibits a strong financial position with consistent revenue and profit growth, efficient cost management, and a balanced capital structure. The company's operational strength is reflected in its robust EBIT and EBITDA margins, alongside a commendable ROE. While the cash flow metrics highlight solid operating cash flow generation, there is potential for enhancing free cash flow conversion. Overall, Torrent Power demonstrates stability and growth potential.

Income Statement

Torrent Power Limited has shown strong revenue growth of 7.29% from the previous year, with a consistent increase in Total Revenue over the years. The Gross Profit Margin stands at 18.84%, indicating efficient cost management. Additionally, the Net Profit Margin improved to 10.24%, showcasing enhanced profitability. The EBIT and EBITDA margins are robust at 13.06% and 19.87%, respectively, signifying healthy operational performance. Overall, the company exhibits solid growth and profitability metrics.

Balance Sheet

The company's Debt-to-Equity Ratio is 0.50, reflecting a balanced capital structure with manageable leverage. Return on Equity (ROE) is at an impressive 16.96%, indicating strong profitability relative to shareholder investment. The Equity Ratio is 48.16%, suggesting a stable financial position with substantial equity backing. Although debt levels are significant, they are well-supported by equity, ensuring financial stability.

Cash Flow

Torrent Power Limited's Free Cash Flow experienced a decrease from the previous year, yet the Operating Cash Flow to Net Income Ratio stands at 1.61, reflecting strong cash generation capabilities relative to earnings. The Free Cash Flow to Net Income Ratio is 0.16, suggesting room for improvement in converting net income into free cash. Overall, the company's cash flow metrics demonstrate robust operating cash flow generation, albeit with some fluctuations in free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	280.38B	291.65B	271.83B	256.94B	142.58B	118.94B
Gross Profit	73.58B	76.80B	39.01B	54.86B	42.41B	42.43B
EBITDA	54.48B	57.95B	47.84B	51.29B	25.12B	36.04B
Net Income	27.48B	29.89B	18.33B	21.17B	4.54B	12.91B
Balance Sheet
Total Assets	0.00	365.73B	333.92B	299.10B	250.23B	235.39B
Cash, Cash Equivalents and Short-Term Investments	11.87B	12.53B	12.91B	10.89B	6.82B	5.34B
Total Debt	0.00	88.40B	116.32B	105.41B	91.43B	78.17B
Total Liabilities	-182.16B	183.58B	207.95B	184.24B	150.44B	133.18B
Stockholders Equity	182.16B	176.15B	120.62B	110.10B	99.43B	101.84B
Cash Flow
Free Cash Flow	0.00	4.75B	6.02B	6.40B	13.58B	16.92B
Operating Cash Flow	0.00	48.05B	42.58B	34.56B	31.67B	29.88B
Investing Cash Flow	0.00	-36.42B	-35.44B	-32.16B	-24.83B	-9.10B
Financing Cash Flow	0.00	-12.16B	-5.51B	-3.41B	-5.02B	-20.61B

Torrent Power Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1403.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TORNTPOWER, the sentiment is Positive. The current price of 1403.85 is above the 20-day moving average (MA) of 1323.39, above the 50-day MA of 1307.09, and above the 200-day MA of 1359.46, indicating a neutral trend. The MACD of 17.25 indicates Negative momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 45.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TORNTPOWER.

Torrent Power Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	75 Outperform	₹677.60B	22.54	―	1.48%	-1.26%	27.83%
CESC	73 Outperform	₹208.38B	14.37	―	3.56%	10.58%	2.69%
POWERGRID	72 Outperform	₹2.40T	15.80	―	3.37%	0.80%	-3.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NHPC	65 Neutral	₹816.86B	25.76	―	2.44%	15.72%	6.45%
TATAPOWER	65 Neutral	₹1.17T	28.97	―	0.59%	4.06%	8.22%
SJVN	55 Neutral	₹309.20B	55.53	―	1.94%	6.92%	-44.22%

Torrent Power Limited Corporate Events

Torrent Power Denies Undisclosed Investment Plans After Media Report

Torrent Power Limited has clarified to the BSE and NSE that recent media coverage suggesting a ₹1 lakh crore energy investment and new B2C platforms does not reflect any undisclosed plans or impending announcements beyond what the company has already reported under regulatory requirements. The company stated that all material investment plans and developments have been, and will continue to be, duly disclosed in compliance with SEBI’s Listing Regulations, adding that recent share price movements are purely market driven and not the result of any non-public information, in an effort to reassure investors and regulators about its transparency and adherence to disclosure norms.

Torrent Power to Shut Trading Window Ahead of Quarterly Results

Torrent Power Limited has announced that, in line with its internal code of conduct and SEBI’s Prohibition of Insider Trading Regulations, the trading window for designated persons will be closed from January 1, 2026. The window will reopen 48 hours after the company files its unaudited financial results for the quarter and nine months ended December 31, 2025, with the stock exchanges, a standard compliance step aimed at preventing insider trading around the time of significant financial disclosures.