Leading India's Energy Transition
Dear Stakeholders,
FY25 has been a landmark year in Torrent Power's journey,
characterised by robust performance and strategic expansion. As India navigates its path
towards a low-carbon energy future, we have remained focused on strengthening our core
capabilities while embracing new opportunities in renewable and green energy segment. This
year's initiatives demonstrate operational excellence and align with our longterm
vision of being a catalyst in the nation's clean energy journey. It is my privilege
to present our progress and share our vision for the future.
Navigating the Power Sector
India's energy sector is undergoing a paradigm transformation,
driven by rapid economic growth, urbanisation, steadily rising electricity demand and a
low carbon future. To meet this need, India has set ambitious targets: 500 GW of
non-fossil fuel capacity by 2030 and net-zero emissions by 2070. As of March 2025, total
installed capacity reached ~475 GW, with solar contributing ~106 GW, wind and hydropower
at ~50 GW and ~48 GW respectively, highlighting the momentum towards a clean energy
future.
To support this energy shift, India is significantly expanding its
transmission network, planning over 1,91,000 circuit kilometres lines and 1,270 GVA
transformation capacity by 2032. Policy frameworks are evolving in parallel, with
incentives for rooftop solar under the PM Surya Ghar Yojana, and targeted support for
green hydrogen, battery storage, and domestic manufacturing under the Union Budget
2025-26. The rapid advancement of electric mobility, with ~30% EV penetration targeted by
2030, is further driving demand for decentralised generation, grid flexibility, and energy
storage. Simultaneously, the Country's data centre landscape is undergoing rapid
expansion, with operational capacity expected to reach 2,000-2,100 MW by March 2027
further driving power demand and reinforcing the need for resilient and sustainable energy
systems.
Against this dynamic backdrop, our operating environment is shaped by
rising demand, evolving policies, and technological progress. Throughout FY25, we focused
on investing in clean energy, ensuring reliability across thermal assets, strengthening
grid and network capabilities, and managing capital prudently. Torrent Power's
integrated presence across generation, transmission, and distribution enables us to
respond to sectoral shifts with agility, foresight, and execution strength. The year
reinforced the relevance of our strategy and the trust reposed in us by our stakeholders.
Operational and Financial Performance
Torrent Power delivered a strong performance across its generation,
transmission, and distribution businesses in FY25, driven by disciplined execution,
strategic investments, and alignment with India's energy transition goals. The
Company's total generation capacity including under construction capacity stood at
~7,992 MWp, with renewable energy capacity at ~4,900 MWp i.e. ~61% of total capacity. Our
gas-based thermal plants — SUGEN, UNOSUGEN, and DGEN — operated at modest levels
owing to reduced offtake from long-term beneficiaries and elevated gas prices, which was
partially offset by increased merchant and bilateral sales, including NVVN tenders and
Section 11 imposed by government for gas-based power plants. These plants played a crucial
role in meeting peak demand and maintaining grid stability. The AMGEN coal-based plant
continued to meet supply obligations in the licensed distribution area.
In renewables, we commissioned a 510 MWp solar capacity, bringing total
operational renewable capacity to 1,746 MWp. The under-development pipeline now stands at
3,154 MWp, backed by a committed investment of over f20,000 Crore spanning across Wind,
Solar, Hybrid, and Commercial & Industrial (C&I) segments. Additionally, we signed
major agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL)
to supply 2,000 MW/ 16,000 MWh through Pumped Hydro Storage, positioning Torrent Power as
an early leader in long-duration storage infrastructure.
In the transmission segment, we are executing two key renewable power
evacuation projects — one in Rshavda, Gujarat, and another in Solapur, Maharashtra
— with a combined investment of approximately f1,300 Crore.
Our distribution business continued to deliver benchmark efficiency,
serving over 4.2 million customers across three states and one Union Territory, while
maintaining one of the lowest distribution loss levels in the country. The Distribution
business demonstrated exemplary operational performance, achieving distribution loss of
2.34% in our licensed areas, which is the lowest in the country and at par with
international best practices. This accomplishment reflects our sustained focus on
operational excellence and efficiency. In our franchised distribution areas, Agra stands
out as a noteworthy success story, where Aggregate Technical & Commercial (AT&C)
losses have been brought down to a record low of 6.94% this year, a remarkable turnaround
from 58.77% at the time of takeover in 2010, highlighting our long-term commitment to
system reliability, loss reduction, and customer-centric service delivery.
Torrent Power's licensed distribution areas in Ahmedabad, Surat,
and Dahej received the prestigious 6-Star EFQM rating, a mark of excellence in
reliability, digital integration, sustainable performance, and customer service. We
continue to enhance customer experience through improved supply reliability and sustained
reduction in distribution losses. By leveraging our demonstrated expertise in distribution
operations, we are investing consistently to improve network quality and operational
responsiveness.
On the financial front, Torrent Power achieved a significant milestone
by successfully completing its maiden equity raise of f3,500 Crore through a Qualified
Institutional Placement (QIP) marking the Torrent Group's first equity issuance in
over three decades. This offering received an overwhelming response, with a 4x
oversubscription, reflecting strong confidence from both Foreign and Domestic
Institutional Investors. The success of this QIP not only underscores Torrent Power's
robust financial credentials but also signals investor trust in our strategic direction
and long-term growth potential. The capital infusion has significantly strengthened our
balance sheet and positions us to accelerate our growth across key focus
areas—renewable energy, energy storage, and transmission—cementing our role as
one of the fastest- growing players in India's power sector.
The Company reported a Profit Before Tax (PBT) of f3,253 Crore for the
FY25, reflecting a robust 26% year-on-year increase of f670 Crore, driven by higher
profitability from gas-based power plants and distribution businesses though partially
offset by temporary profit declines in renewables, due to adverse weather and
stabilisation period at the newly commissioned solar projects.
Furthermore, Total Comprehensive Income (TCI) included a one-time,
non-cash reversal of deferred tax liabilities amounting to f637 Crore resulting in
substantial 63% year- on-year TCI growth i.e. f1,177 Crore. The Company has consistently
delivered superior Return on Equity and Return on Capital Employed over peers.
During the year, capital expenditure totalled f4,388 Crore, with over
50% strategically allocated to the development of clean energy infrastructure. This
underscores our continued commitment to expanding clean energy capacity, strengthening
transmission systems, and modernising distribution networks reinforcing our commitment to
sustainable energy future.
We continue to maintain a conservative capital structure, strong
liquidity, and a clear focus on cost efficiency. Margin stability was ensured through
disciplined project execution, digital adoption, and reliable cash flows from regulated
operations.
Our Next Phase of Growth
We aim to achieve 10 GW of renewable capacity by 2030, backed by an
under-construction capacity of more than 3 GWp. Our strategy is built on a diversified
portfolio, encompassing utility-scale solar, wind, hybrid, round- the-clock projects and
supplying renewable power to C&I customers. Additionally, we are evaluating
opportunities in green hydrogen and green ammonia to complement our clean energy
initiatives.
To enhance grid flexibility and ensure firm renewable power delivery,
we are exploring Pumped Hydro Storage opportunities in Maharashtra and Uttar Pradesh with
a cumulative potential capacity of ~8.4 GW, of which 2 GW is already secured through firm
agreement. Our goal is to build a future-ready energy portfolio that balances energy
security, commercial viability, and sustainability. Thermal power remains essential for
India's energy security and grid stability. Given current power demand dynamics, we
are also prioritising thermal generation. In particular, our gas-based plants are expected
to operate at healthy Plant Load Factors, supporting grid reliability during periods of
high peak demand and renewable intermittency. We are also actively considering to develop
coal-based thermal power projects to participate in competitive bids being floated by
state DISCOMs, as well as secure power supply for our distribution business, reinforcing
our commitment to meeting the country's growing energy demands with reliable and
scalable solutions.
On the infrastructure front, we continue to enhance customer experience
by improving supply reliability and reducing distribution losses in our existing
distribution areas. We are equally focused on expanding the reach of our distribution
business by pursuing new opportunities in distribution privatisation, parallel licenses
and franchisee models. Our strong track record in efficient, customercentric operations
positions us well to create value across a broader footprint.
In transmission, we continue to pursue both brownfield and greenfield
expansions. We plan to continue to actively participate in competitive bidding for both
inter-state and intra-state transmission projects to facilitate the growing integration of
renewable energy into the national grid.
As we pursue these opportunities, we remain committed to upholding the
highest standards of ESG performance. Sustainability, transparency, and responsible
stewardship will continue to guide our decisions ensuring long-term value-creation for our
stakeholders.
People at the Core
At Torrent Power, our people are our most valuable assets. We are
committed to fostering a safe, inclusive and growth-oriented workplace. Comprehensive
employee engagement programs, structured learning and development platforms, and digital
training tools have been scaled to enhance capabilities across the organisation. We
emphasise a culture of continuous learning, collaboration, and cross-functional exposure
aligned with the evolving needs of the energy sector.
Health, safety and well-being remain our core priorities. We have
implemented targeted wellness initiatives including mental health support and awareness
campaigns to strengthen employee resilience. Our performance-linked development frameworks
and transparent communication channels promote meritocracy and accountability. We also
continue to build a diverse and equitable organisation that empowers individuals at every
level to contribute meaningfully and grow with the Company.
Committed to Progress
Our approach to social responsibility is rooted in the belief that
long-term business success must go hand in hand with community development. Our CSR
initiatives during the year focused on Community Health Care, Education & Knowledge
Enhancement and Social Care and Concern.
These are the areas where we believe we can create measurable and
lasting impact.
In healthcare, we continued to strengthen access to paediatric services
through structured initiatives implemented via our REACH (Reach EAch CHild) program,
including the UNM Children Hospital and various paediatric centres. These efforts were
complemented by adolescent health and hygiene programs aimed at empowering young girls in
underserved communities. In education, we promoted academic support and vocational
training to enhance skill development and employability among rural youth.
We continued our efforts in public infrastructure and environmental
improvement by redevelopment and maintenance of parks and community spaces reinforcing our
commitment to inclusive growth and uplifting the communities.
Closing Thoughts
We enter FY26 with a robust platform for accelerated growth. Our
strategic priorities remain clear - significant scale up in renewables and storage
solutions, expand power distribution and pursue opportunities in emerging clean energy
technologies, thermal generation and transmission segments. With a strong capital
position, capable teams, and a value-driven culture, we are well positioned to shape
India's energy future responsibly.
I extend my gratitude to our Board for their guidance, our employees
for their dedication, and our customers and investors for their continued trust. Together,
we will continue to illuminate lives and lead India's energy transition with
resilience and purpose.
Warm regards,
Samir Mehta
Chairman