Torrent Power

As of 2026-11-06, TORNTPOWER (₹1,267.50) exhibits a mixed technical structure characterized by short-term strength within a longer-term downtrend. On the daily timeframe, price sits above the 20-period and 50-period EMAs and SMAs, suggesting immediate bullish momentum. This is corroborated by a high-severity upward gap on 2026-11-05 (+2.5%) and recent positive market attention events. However, the daily Supertrend remains bearish, and the stock trades below its 200-period SMA, indicating that the broader trend has not yet reversed.

The weekly chart reinforces this cautionary backdrop: price is below all supplied moving averages and the Supertrend is bearish, with a steep negative slope in the 20-period EMA (-52.36). Conversely, the monthly view shows a bullish Supertrend direction, though price remains below key moving averages. Volatility is elevated at an annualized 31.3%, and the stock is currently 28.5% below its available high, reflecting significant historical drawdown risk.

Price positioning is critical here; the stock is near the upper end of its 20-day range (+94.7%) but near the lower end of its 252-day range (+17.7%). Immediate resistance lies at ₹1,276.47 (0.71% above), while support is clustered tightly around ₹1,259.93–₹1,260.79. A sustained move above ₹1,276.47 would be required to confirm further upside, whereas a break below ₹1,259.93 could invalidate the short-term recovery attempt.

Torrent Power reported its Q2 FY27 results on November 5, 2026, marking a significant expansion in scale and profitability. The company posted a 13% year-on-year increase in net profit to ₹838 crore, supported by a robust 24.5% revenue surge to ₹9,802 crore. This growth was driven by operational improvements in power distribution and renewable energy segments. While EBITDA grew by 15.5% to ₹1,988 crore, the EBITDA margin narrowed slightly to 18% from 19%, attributed to higher finance costs linked to increased borrowings. Looking ahead, Torrent Power holds an installed capacity of 6.8 GWp and is developing an additional 4.3 GWp of renewable projects alongside 3 GW of pumped storage capacity, signaling continued capital-intensive expansion.

Torrent Power Limited’s Board approved unaudited financial results for Q2 and the half-year ended September 30, 2026, on November 4, 2026. Consolidated Revenue from Operations rose 24% year-over-year to ₹9,801 crore, while EBITDA increased 26% to ₹1,988 crore. Adjusted EBITDA grew 29%, supported by distribution and renewable energy performance alongside the consolidation of Nabha Power Limited, which was acquired as a wholly owned subsidiary on June 25, 2026, for ₹3,632.35 crore. Total Comprehensive Income (TCI) rose 14% to ₹835 crore. The company maintains an aggregate installed generation capacity of 6.8 GWp and distributes power to approximately 4.29 million customers across Gujarat, Maharashtra, Uttar Pradesh, and DNH & DD. Purchase price allocation for the Nabha acquisition remains in progress, with net assets provisionally valued at ₹4,390.16 crore. Additionally, security cover certificates filed for Series 7–15 indicate ratios ranging between 2.12 and 2.54.

Torrent Power’s operating trajectory shows a clear divergence between top-line resilience and bottom-line pressure. In Q2 FY2026-27, revenue rose sequentially to ₹9,802 crore from ₹8,124 crore in Q1, driven by a 10% year-on-year sales growth trend observed through Sep 2025. However, this expansion coincided with rising finance costs (₹439 crore) and expenses (₹8,920 crore), resulting in a net profit of ₹838 crore. Despite higher absolute profits, the TTM EPS declined to ₹46.11 from ₹59.31 in Mar 2025, reflecting margin compression as interest costs outpaced operational gains.

Financial health is under strain due to aggressive capital expenditure. Borrowings surged to ₹23,058 crore (current + non-current) as of Sep 2026, up significantly from ₹10,264 crore a year prior, while cash reserves remained flat at ₹234 crore. This leverage supports a massive asset base expansion to ₹58,565 crore, but it has weighed on returns: ROCE fell to 14% in Mar 2026 from 16% previously. While CFO/EBITDA conversion remains strong at 109%, the heavy reliance on debt financing for fixed assets (₹25,611 crore) creates a sensitive interest burden that investors must monitor closely.

Torrent Power presents a conditional upside case anchored by robust operational expansion and strong recent earnings momentum, despite near-term technical weakness. The company reported a 24% year-on-year revenue surge to ₹9,801 crore in Q2 FY27, with EBITDA climbing 26% to ₹1,988 crore. This growth is underpinned by a significant renewable energy pipeline: the firm currently holds 6.8 GWp of installed capacity and is developing an additional 4.3 GWp alongside 3 GW of pumped storage capacity. Financially, net profit rose 13% YoY to ₹838 crore, demonstrating effective scaling even as EBITDA margins narrowed slightly to 18% due to higher finance costs from increased borrowings. Technically, while the daily trend is bearish (Supertrend: bearish) and the stock has suffered a -28.5% current drawdown, the monthly timeframe remains bullish (Supertrend: bullish), suggesting longer-term structural support. The constructive case relies on the successful execution of its renewable expansion and continued profit growth offsetting short-term volatility.

Torrent Power's Q2 FY27 results highlight a structural margin pressure despite top-line growth. While revenue surged 24% to ₹9,801 crore and net profit rose 13% to ₹838 crore, the EBITDA margin contracted from 19% to 18%. This narrowing is directly attributed to higher finance costs stemming from increased borrowings required to fund its expanding renewable energy pipeline (an additional 4.3 GWp capacity). From a market perspective, the stock faces significant technical headwinds; the daily Supertrend indicator has turned bearish, and the share price is trading in a deep drawdown of -28.5% from its peak, with a maximum historical drawdown of -34.7%. The stock has also underperformed over the medium term, posting a -26.9% return over the last six months and a -4.5% year-to-date decline as of November 6, 2026.