Torrent Power Ltd. share price target

Weak power demand impacted Torrent Power as it reported subdued Q1FY26 result. Gas based capacity forms 56% of the total installed capacity.

FY25 PAT stood at 3,059 Cr, but adjusted PAT stood at 2,422cr.(+27.7%) due to a one-time, non-cash deferred tax liability reversal of 637cr., following a shift to the new tax regime and reassessment of MAT credit utilisation....

Torrent Power reported subdued Q3FY25 result. Revenue was up 2% YoY to INR 65bn, EBITDA grew 6.5% YoY to INR 11bn and PAT grew 40% YoY.

Torrent Power (Torrent) is the largest private operator of gas-based power plants and a significant portion of it is untied. Hitherto, the untied capacity was a drag.

LICI: Solid quarter; valuations overdone cut to HOLD. ALKEM: Good quarter; cut to SELL on stretched valuations. Monthly Chartbook: Fiscal consolidation to hold key. PWGR: In-line quarter, FY25 capex hiked; maintain BUY. TATACONS: Strong run continues. DIVI: Healthy margin recovery, heady valuations. TPW: Dull quarter; high valuations maintain HOLD. ESCORTS: Weakness persists - maintain SELL. TRCL: Tepid quarter, high capex overhang retain SELL. Metals & Mining: Ferrous read-across: Steel recovery in CY24 - ArcelorMittal

Q2 revenue and PBT flattish YoY as gas trading and power sales in the short-term market tapered

Torrent Power’s (TPW) Q2FY23 performance was boosted by strong performance in the distribution business, particularly franchised distribution (DF).

Torrent Power’s (TPW) Q1FY23 numbers were bolstered by good performance in the distribution business, particularly franchised distribution (DF), and renewables.

Price capturing in a demand recovery; reiterate Neutral TPW's result highlights the benefit of better demand and lower T&D; losses in its distribution franchise (DF) business, leading to a 7%/43% YoY jump in...

Price captures demand recovery; downgrade to Neutral Torrent Power (TPW)'s result highlights the benefit of normalizing demand in its Distribution Franchise (DF) business, offset by lower renewable generation. Reported EBITDA was up 11% YoY. While a fresh set of lockdowns could affect the performance of DFs, power demand and collections in DFs have not been significantly impacted thus far. We expect the co.'s DF business to improve over FY2223. However, with the recent run-up in the stock (+45% in the last six months), this...

Torrent Power (ADD): Good results; hopeful on DNH, selective on renewable bids

19 May 2020 Torrent Powers (TPW) 4QFY20 results highlight the improved performance of its distribution businesses (franchise and licensed) along with some benefit of merchant sales. EBITDA improved 17% YoY to INR8.3b. TPWs distribution business may get impacted due to lower volumes owing to the COVID-19 pandemic. However, a healthy balance sheet should help it to tide over this wave. TPWs 4QFY20 EBITDA rose 17% YoY to INR8.3b (v/s est. INR7.4b) amid lower T&D; losses and some merchant volumes. This was partly offset by the impact of new CERC norms on Sugen. The beat to our estimates was largely led by (1) improved performance of its distribution businesses (both franchise and licensed) amid lower T&D; losses, and (2) some merchant volumes. In addition, the company made a provision of (1) INR0.5b for possible cancellation of its SECI-V project, and (2) INR0.5b for bad debts adj.

Key TPW has not tied-up new gas supplies for its UnoSugen PPA (effective from 1 Jul19). Instead, the company is (a) making use of gas tied up for Sugen (@USD6.5/mmbtu till Dec20) and (b) buying from spot, as required. While the Unosugen PPA has a ceiling on the cost of supply (INR5.6/kWh), current spot contract prices provide significant cushion (Exhibit 2). TPW believes that the natural gas market would remain oversupplied, and thus it would increase sourcing from spot contracts. Longer-term contracts (generally up to 1.5 years) could be entered, but pricing is done with reference to Brent (slope of ~10-11%) and resulting in higher cost. TPW has also contracted storage-cum-regasification capacity of 1mtpa at Petronet LNGs Dahej terminal for its imports. We note there is capacity in place to increase offtake, if required. Of the 17.5mtpa capacity at the Dahej terminal, only ~15.8 mtpa is contracted.