Torrent Power Q2 FY27 Results (NSE: TORNTPOWER)
Signal: Growth reaccelerated
The read
The trajectory is expansion-led rather than margin-led: consolidated revenue reached ₹9,801.58 Cr, +24.4% YoY, but standalone operating margin contracted 159bps YoY to 18.16% and PAT fell 9.4% to ₹675.84 Cr. The key swing factor is funding and operating cost absorption, with standalone finance costs up 65.7% YoY and borrowings at ₹12,475.87 Cr after the Nabha Power acquisition and ongoing project investment.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹9,801.58 Cr | +24.4% | +20.7% |
P&L walk
Consolidated revenue was ₹9,801.58 Cr, up 24.4% YoY and 20.7% QoQ; the supplied filing text does not include the remainder of the consolidated statement needed to assess consolidated margins and PAT.
Key positives
- Consolidated revenue increased to ₹9,801.58 Cr, +24.4% YoY and +20.7% QoQ, reflecting the enlarged generation portfolio and Nabha Power consolidation.
- Standalone operating cash flow remained positive at ₹1,367.49 Cr in H1FY27 despite a 36.2% YoY decline.
- CWIP increased to ₹1,334.27 Cr from ₹953.71 Cr at March 31, 2026, supporting future capacity additions.
- Standalone EPS of ₹13.41 declined 9.5% YoY, broadly tracking the 9.4% PAT decline without a dilution signal.
Key concerns
- Standalone operating margin fell to 18.16%, down 159bps YoY, as electrical energy purchased rose 23.1% and fuel cost rose 23.9% against 7.1% revenue growth.
- Standalone finance costs rose 65.7% YoY to ₹272.43 Cr, while the debt-equity ratio increased to 0.77x from 0.45x a year ago.
- Standalone trade receivables increased to ₹2,641.85 Cr from ₹1,717.72 Cr at March 31, 2026, while cash and cash equivalents fell to ₹100.82 Cr from ₹565.39 Cr.
- Consolidated fuel cost rose 97.7% YoY to ₹2,591.48 Cr in the disclosed portion of the statement, creating a material risk to group margin conversion.
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