Torrent Power shares declined over 7% to hit an intraday low of ₹1,478 on the National Stock Exchange (NSE) following disappointing Q4 FY26 results. The stock was trading at ₹1,482.6 as of 11:05 AM, down 7.2% from the previous session's close of ₹1,597.60. According to The Economic Times, the decline was 1.83% compared to the benchmark Nifty index on Tuesday. The company maintains a market capitalisation of ₹74,613 crore with a 52-week high of ₹1,824 and 52-week low of ₹1,188. Despite the recent volatility, the stock has gained 22% on a year-to-date basis, significantly outperforming the 11% decline in Nifty50.
The company's consolidated net profit slumped 69% for Q4 FY26 to ₹318.20 crore compared to ₹1,060 crore in the same period last fiscal year. As reported by The Economic Times, revenue from operations decreased marginally by 0.8% to ₹6,406.07 crore in Q4 FY26 from ₹6,456.34 crore year-on-year. However, the operational front remained largely steady with EBITDA rising 1.7% to ₹1,149.3 crore from ₹1,130.5 crore in the corresponding period. EBITDA margin expanded slightly to 17.9% from 17.5% in the comparable quarter of last fiscal. The company's generation segment reported an EBIT loss of ₹38.9 crore against an EBIT profit of ₹233.8 crore in the corresponding quarter last year, indicating significant operational challenges. According to the company's regulatory filing, the contribution from gas-based generation business, though remaining constrained due to dynamic power demand scenario and gas market volatility.
In a significant development, Torrent Power announced a board-approved plan to raise up to ₹10,000 crore through Non-Convertible Debentures (NCDs) to fund its expansion strategy. According to NDTV Profit, the magnitude of this debt raise is roughly 1.5x the current quarterly revenue, signaling a major balance sheet expansion. The funds are intended for general corporate purposes, including the expansion of the renewable energy portfolio and refinancing existing debt to optimize the balance sheet. This capital allocation shift indicates the company's transition from high cash retention to high capital intensity for sustainable growth initiatives.
The board of directors recommended a final dividend of ₹5 per equity share for the fiscal year, with the company distributing close to ₹252 crore to shareholders. As reported by The Economic Times, the total dividend for FY26 stands at ₹20 per equity share, comprising an interim dividend of ₹15 per equity share and a final dividend of ₹5 per equity share. The company has a total of 50.3 crore equity shares and will be disbursing the dividend to each fully paid-up share of ₹10 each. In this fiscal year, the company has also paid an interim dividend of ₹15 per share to its shareholders, demonstrating strong commitment to returning value to investors despite challenging quarterly performance.
The board of directors approved significant leadership continuity with Radhika Haribhakti's re-appointment as a non-executive independent director for a second and final term of five consecutive years from August 7, 2026 to August 6, 2031, subject to shareholders' approval. Additionally, the board approved Ketan Dalal's re-appointment as a non-executive independent director for a second and final term of five consecutive years from May 11, 2027 to May 10, 2032, also subject to shareholders' approval. These appointments demonstrate the company's commitment to maintaining strong corporate governance standards and experienced leadership continuity across key board positions.
