Torrent Power Q2 profit drops 8.6% on lower thermal, renewable contribution

Torrent Power Ltd. reported an 8.6% year-on-year decline in net profit to ₹481 crore for Q2 FY25, compared to ₹526 crore in the same quarter last year.

The drop was attributed to a reduced contribution from thermal generation, largely due to lower merchant sales, including LNG, and decreased electricity demand driven by prolonged monsoon conditions.

Revenue, however, rose 3.1% to ₹7,175.8 crore from ₹6,961 crore a year ago. Operating earnings (EBITDA) edged down 1.2% to ₹1,207.3 crore, with EBITDA margins narrowing to 16.8% from 17.6% in the previous year.

The company cited lower output from its renewable business as another factor, with Plant Load Factor (PLF) affected by colder weather and the partial commissioning of new solar projects undergoing stabilisation.

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Increased finance and depreciation expenses, linked to capital expenditure and the commissioning of additional renewable capacity, further weighed on profitability.

Torrent Power’s shares closed 1.09% higher at ₹1,640 on Wednesday.

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The company, a major player in power generation, transmission, and distribution across India, currently holds a market valuation of ₹27,183 crore.