Global brokerage Jefferies has raised Torrent Power's target price from ₹1,700 to ₹1,780, citing rising renewable energy capacity and steady return on equity. According to reports from Jefferies, the brokerage expects gas plant load factors to remain low, supporting the positive outlook for the power company. The target price revision reflects confidence in the company's renewable energy expansion strategy and operational efficiency improvements.
On the renewable energy front, Jefferies expects capacity to grow sharply by fiscal year 2030, with estimates indicating capacity increase by at least 3X of the existing capacity. As reported by Jefferies, the power company is expected to maintain a steady return on equity of 12-13% every year from financial year 2026 to financial year 2030. The brokerage noted that earnings before interest, taxes, depreciation and amortisation (EBITDA) are expected to achieve a 13% compound annual growth rate (CAGR) between FY 2026 and FY 2030.
Despite positive long-term projections, Jefferies flagged transmission infrastructure availability as a key challenge. According to the brokerage, transmission infrastructure availability is leading to delays in commissioning timelines, primarily for renewable power projects. This infrastructure constraint could impact the company's ability to capitalize on its renewable energy growth strategy in the near term.
Torrent Power posted weaker first-quarter earnings performance with consolidated net profit falling 13% from a year earlier to ₹639 crore in the quarter ended June, compared with ₹731 crore in the corresponding period last year. As reported by NDTV Profit, revenue from operations rose 2.8% year-on-year to ₹8,124 crore from ₹7,906 crore a year earlier. EBITDA increased 3.7% to ₹1,538 crore, compared with ₹1,483 crore in the year-ago period, with EBITDA margin improving marginally to 18.9% from 18.8%.
