Torrent Power Ltd: Muted results in 1QFY27; Capex shows encouraging trends

Research evidence excerpt

Torrent Power Ltd: Muted results in 1QFY27; Capex shows encouraging trends

J P M O R G A N Asia Pacific Equity Research

04 August 2026

Torrent Power Ltd Neutral

TOPO.NS, TPW IN

Muted results in 1QFY27; Capex shows encouraging Price (03 Aug 26):Rs1,391.70

trends Price Target (Mar-28):Rs1,609.00

Torrent Power reported muted headline 1QFY27 results primarily due to lower India Industrials, Electric Utilities,

PLFs in the thermal business. Reported consolidated PBT at Rs9.3bn fell 6% y/y and Infrastructure Sectors

and was 11% below JPMe. 1QFY27 saw improved execution with capex of Atul Tiwari AC

Rs23bn and 1Q/2QFY27E renewable commissioning at 70MW/400MW vs. (91-22) 6157-3582

FY27E guidance of 1.2GW. The Middle East conflict has impacted the availbility atul.tiwari@jpmorgan.com

of domestic gas adversely, however, management confirmed that it is able to Rishabh Gupta

procure imported gas and achieve PAF of gas-based projects. Availability is not an (91-22) 6157-3429

issue, but the price of imported gas is high, reducing the chance of merchant power rishabh.x.gupta@jpmorgan.com

sales (only possible in HP-DAM segment and that too at few time slots). While Muskan Agarwal

(91-22) 6157-3226

Torrent Power remains a quality play on the growth of private power distribution muskan.x3.agarwal@jpmchase.com

in India, fluctuations in power demand and execution challenges warrant caution J.P. Morgan India Private Limited, J.P. Morgan

on valuations. Maintain Neutral. Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

Lower PLF due to high LNG prices - Thermal PLF across gas plants fell —

SUGEN at 27% (vs 43.4%), UNOSUGEN at 14% (vs 20.6%), and DGEN at 13.6% Style Exposure

(vs 31.7%)—reflecting the impact of elevated LNG prices on dispatch economics.