Thank you. Good evening to all of you, and thank you for joining earnings call of Torrent Power for Q1 FY 2027.

We will first quick view the performance of the quarter, thereafter we will welcome the question and answers. Let me explain the performance of the company at PBT level first, and then we will take you through the tax expenses separately.

Reported PBT for the quarter stood at 925 crores as compared to 985 crores in the corresponding quarter of last year, a reduction of 60 crores. PBT for the corresponding quarter of the last year includes a non-recurring loss of 59 crores on account of non-cash adjustment due to foreign currency fluctuations.

Adjusted for this one-off, PBT for the quarter stood at 925 crores as compared to 1,044 crores in the comparable quarter of last year, a reduction of 119 crores on adjusted basis. Tax expenses during the quarter has increased by 28% as compared to 25% for the corresponding quarter of last year.

The increase is mainly on account of completion of tax holiday period availed under Section 80-IA for some of the units. Business-wise factors contributing to performance are as follows.

First, contribution from the thermal generation business remains resilient despite elevated gas price arising from ongoing geopolitical tension in Middle East and increase in O&M expenses. Adjusted for the non-recurring item in the corresponding quarter of the previous year, the business performance was was lower by 123 crores, primarily on account of three factors.

First, despite elevated gas price during the quarter, the company maintained healthy operating margins in its merchant power operations. However, the gains from the merchant sales and LNG trading were lower by 87 crores.

During the quarter, we have undertaken upgrade exercise to our gas-based plant to improve the plant flexibility and availability, resulting into the increase in O&M expenses by 51 crores. Benefit of these are being demonstrated during the quarter, whereby we are we were able to realize better margins on merchant power sales.

While some of the upgrades are implemented, others are being progressively rolled out in our gas-based unit, which will help us improve our margin realization going forward. This will also help us manage the evolving operating environment, which has significantly changed recently on back of increased renewable energy penetration, requiring our units to operate more frequently in a cyclical mode and respond to varying demand patterns.

These measures are expected to support higher availabilities, improve operational reliabilities, and optimization of long-term O&M cost as well as despite the as well as despite the increasingly flexible operating regime. Company on 25th June 2026 consummated acquisition of Nabha Power plant, which contributed 15 crores in the quarter.

Lower contribution from thermal generation was partly offset by increase in gain from distribution and renewable segments. The second reason, on the distribution and transmission segment in total is is contributed 71% additional profit, driven by three factors.

First, receipt of favorable orders from the regulator approving carrying cost of 41 crores. This is a normal course of business due to regulatory asset we have we we we have, and we are getting the favorable regulatory orders.

Second, improved contribution from the operations by 19 crores supported by two factors. First, increase in ROE and ROCE on account of capitalization of assets and high and higher rate of returns on equity as per the new tariff regulation and other incentives.

The third is Second is improved contribution from the distribution franchisee business on back of improved volumes and increased tariff. Volume across the franchise distribution business improved by 4%.

The third reason is additionally new commissioning transmission project has contributed 11 crores incremental profit. Now coming to the renewable operations, we have renewable operations contributed 19 crores positive contributions due to generation from newly newly commissioned capacity and improved PLF across the wind and solar, both partially offset by gain in similar quarter previous in the similar quarter of the previous year on account of LPS income on delayed payments.

The fourth reason is other factors lowering the profitability 90 crores. There are two main reasons.

First, increase in finance cost on back of higher capitalization and related borrowings, and second, increase in miscellaneous expenses and depreciation, which was on account of higher capitalization mainly in renewable segments. This complete the explanation of the financial performance within the quarter.

Now coming to the update of the various project in the implementations. Renewable Renewable energy project of 70 MW got commissioned during the quarter, taking the aggregate installed capacity installed generation capacity of the company to 6.6 GW as on 30th June 2026, comprising of 2.7 GW gas-based project, 1.8 GW coal-based project, and 2.1 GW renewable capacities.

First on renewable energy projects, as on 30th June 2026, renewable energy project of 4.6 GW are under implementation, which are which we which we expect to commission progressively as under. One, about 1.2 GW capacity is expected to commission in FY current year, FY 2027.

Between 1.4 to 1.6 GW capacity is expected to commission in next year, which is FY 2028, and balance capacity in FY 2029. Capex of 1,550 crores was incurred during the during the quarter against 1,200 crores capex in Q4 FY 2026 and 355 crores of capex in Q1 of FY 2026.

This is comparable quarter of the last year. Of the total capex of 29,600 crores of in RE projects under implementation, cumulative capex of 8,800 crores has been incurred up to 30th June 2026.

In FY 2027, total capex of approximately 10,000 crores is expected to be incurred for all RE projects. Moving on to the information under the Anuppur thermal project of 1.6 GW, update is as under.

First, activities are underway wherein following major milestones have been achieved. First, power power sale agreement executed with MP Power Management Company Limited.

Second, letter of award issued to the BTG as well as balance of plant. Third, environmental clearance received for the project.

The fourth, the project is expected to commission in next 6 to 7 years. A total capex of 450 crores has been incurred as of as on 30th June 2026.

Coming on the pumped storage hydro project of 3 GW in Maharashtra, the update is: activities are underway wherein following major milestones have been achieved. First, energy storage facility agreement with MSEDCL was executed.

Letter of award issued to the civil, hydromechanical, and packages, and second, electrical and mechanical packages. Environment and forest clearance has been received for the project.

The project is expected to commission in next 3 4 3 to 4 years, and total expenses of 1,130 crores has been incurred up to 30th June 2026. In the transmission project, Solapur is under implementation, expected to be commissioned this year.

Cumulative capex of 330 crores has been incurred as on 30th June 2026. Further details on the pipeline project has been summarized in our latest investor presentation available on our website.

That's all for the quarters. Now I request coordinator to open line for Q&A session.

Wish everybody to stay stay safe and healthy. Thank you so much.

Handing over to the operators.

Yes. Good evening, sir, and thanks for the opportunity.

My question is on Nabha Power. Can you help us with the revenue, adjusted EBITDA Nabha Power for Q1, and gross debt on the Torrent Power post the acquisition of Nabha?

The Q1 we acquired on 25th of June. There is hardly five five days of income we have booked, not for the entire quarter.

Five days I would say EBITDA was about overall 15 crores profit we have booked in our result. Not material amount we have booked because it's a five days operation we have consolidated in our books of accounts.

As far as gross debt is concerned, it is around 6,000 crores, 6,500 crores of gross debt which is added in the books.

Because of the Nabha Power project. About 3,000 crores in the Nabha Power book and about 3,800 crores in the Torrent Power book.

Understood. Sir, is it fair to expect that Nabha Power will add 250 crore EBITDA per quarter going forward?

You are right. On a steady-state basis, around 1,000 crores of EBITDA should be a good enough number.

Yes, exactly.

Understood. My second question is, sir—

Cash flow basis, not on the reported basis, because they are

pursuing accounting as per— That I understand, sir. Because SC accounting is—

Cash flow basis, yes. Not on the reported basis, because reported

EBITDA is lower. Adjusted EBITDA.

Understood.

Yes, adjusted EBITDA, yes.

My second question, sir, can you help us with the reason for lower contribution to EBITDA of renewables in this quarter despite 30% increase in generation? I'm talking about EBITDA which you reported in this segmental, yeah?

I see only 20 crore incremental.

Differential, you can see this number, but if you recollect that the last year's similar quarter, we have an income of about 47 crores of the LPS claim was available, which was not available in the current quarter. That is why you are seeing a differential number is lower, otherwise on a standalone basis, number is higher as far as EBITDA is concerned.

Oh, that's on the RE side, right, sir? RE side talking about, right?

RE side, yes, RE side I'm talking about.

Understood, sir. My last question, sir, of course, I think you spoke about your capital expenditure program for FY 2027, ₹10,000 crores, but how much you incurred in Q1?

Q1, we have total incurred—

Around 1,500 crores incurred in Q1 for renewable projects.

For RE projects, yes. We haven't spent anything on the coal, nothing on the PSP in the Q1.

That's right, sir?

Thermal, basically coal, we have incurred about 125 crores.

125, understood. Understood.

This is very helpful, sir. Thank you, sir.

Thank you, and best of luck, sir. Yeah.

Hi, thank you. I wanted to understand, dissect your demand across different distribution circles.

While Ahmedabad, you registered 10% volume growth YoY, the Surat, Dadra & Nagar Haveli, all these other licenses and all had very muted growth. Just trying to understand what was happening in these regions when overall at the all-India level, we had very strong growth in the quarter.

The AT&C losses also increased in almost all circles AT&C losses increased substantially. Both demand and AT&C losses.

If you

Ahmedabad is a benchmark, I would say, 10% is a growth which is a comparable with the country's average, I would say. Surat being an industrial town, always growth will be not comparable with the overall demand growth, I would say.

Dahej is also industrial area, basically, it's comparable to the Surat growth. D&NH, DD, yes, there is a some lower demand is exceptional case, I would say.

It's not a repetitive kind of a nature. In terms of AT&C losses, I would say, in Agra particularly, the last year similar quarter, we got some good realization from our Agra Nigam Limited.

Past realization we got which has reduced our AT&C loss substantially, which is not the case that in the current quarter. That is what the difference, I would say, in AT&C losses.

Otherwise, D&NH, Dahej is not material different, I would say, as compared to last year. There is a substantial difference in Agra mainly because of the higher realization we have received in the comparable quarter of last year, which is not the case in the current quarter.

Okay. Sir, what was the, I'm not sure if I missed it in the opening remarks, what was the merchant EBITDA and LNG EBITDA in this quarter?

The differential lower profit is about 87 crores, like what we have said, and we sold about 445 MUs in the merchant market in the current quarter.

This was largely in High DAM market? Yes, yes, yes,

yes.

Okay. Just trying to understand how do you look at this market given you have a large untied capacity and many players are adding battery and given the merchant BESS installations that we see for this year and projections, do you see a case for any risk?

How do you evaluate merchant gas potential for you?

If you look at the demand pattern in the country where the peak demand and the summer demand will always be there, and now the peak demand period is also prolonging, I would say. During the evening time in the summer time, we keep on getting this opportunity in the merchant market for our untied capacity, I would say.

Once the gas price thing becomes normal, we will keep on getting more opportunities going forward, I would say.

Lastly, there is some delay in one FDRE project, it seems, and some other projects also I know you're talking about 1.2 GW in general for this year, but are you seeing any delays? Some of these are your own discoms.

Some seemed like STU. Are you seeing some delays in STU commissioning?

The latest estimate you have for 1.2 GW, what kind of visibility do you have for transmission availability?

As you're aware that all this project connectivity, transmission line availability, basically, commissioning of the transmission line, onward transmission line, is a bit of a issue and some of them because of the ROW issues, which we are trying to work with the transmission utility to see that they should come their project on time so that our project progress should also align with their timeline.

Satyadeep, what we have said is after factoring in all those issues, our expectation is that we should achieve this target, what we have given. Now, if something unfortunate happens, we'll update you on a quarterly basis.

This is what we feel that it's a reasonable estimate right now looking at the current scenario.

Thank you so much.

Good evening. My first question is in relation to your 1.2 GW peak commissioning target.

What kind of phase-out are you expecting of project commissioning after 70 MW in Q1? Is it likely to be more Q3, Q4 heavy, or is there any phase-out that we should be mindful of?

We expect though first quarter our commissioning was 70 MW, but by Q2, we expect about 400 MW will get commissioned, and the balance will happen in H2, I would say. That is what we are progressing.

Okay. H2 will be about 800 MW peak and H1 is 400?

Yes, exactly.

Okay. We were reading in the media that your AMGEN plant is supposed to be sort of shifted to another location and in lieu of that, you will set up a 800 MW replacement power plant.

What is your version of what developments have happened so far?

AMGEN power project is about 362 MW capacity, and we have a permission to run up to December 2030, and what has happened that since after December 2030, it's not going to be in operation. We have expressed, and it's basically plant available for the Ahmedabad distribution, we have requested state government for the coal allocation, double the coal allocation of the capacity of 662 MW.

That's all. State government has approved the coal allocation, but they have requested the central government for the coal allocation.

Once the central government approves the coal allocation for this plant, we plan to set up close to about 800 MW unit to replace the AMGEN power project. That is what the plan is.

Has the land for this plant been earmarked or allocated to you? No,

I think we are working out on where exactly to place the plant. It may not be in Gujarat also.

We're working on that, where this new plant will come in. Work-in-progress kind of a thing right now, but coal allocation is being done by the state government.

They have applied to the central government for the allocation. Once the allocation is available, then we firm up our plan and implement 1 unit of 800 MW to replace the AMGEN power project.

Okay. Quarter-on-quarter, we have seen some movement in your RE portfolio, mainly around C&I projects.

What is your general outlook for the year in terms of how your portfolio for RE will build up? Is there any traction that you're seeing in terms of bidding activity, tendering activity for RE projects?

Your thoughts here will help.

We are participating almost all the projects, but as you know our philosophy, we restrict our bidding at some point of time so that we can at least achieve 15% IRR. That is what the philosophy we continue to adopt going forward also.

Our benchmark will be the IRR, not to acquire more and more capacity. That is our philosophy we are following, and we continue to follow that philosophy going forward.

Thank you.

Yeah.

Thank you very much, everybody, who has joined the Torrent Power earnings call. Thank you very much.

Okay.

Hi, sir. Thank you for the opportunity.

Sir, I want to know your thoughts on a couple of things. On this increased competition from batteries, I think you touched upon this a little bit earlier as well, but where do you see the marginal cost of gas power settlement sort of heading towards given the price at which probably batteries can supply electricity?

Also secondly, would also like to know your thoughts if we have any plans of entering the T&I space? No,

I think, Apoorva, there are two questions here. If you are asking the levelized cost of energy of battery versus gas power plants, right?

Now with this elevated gas prices, variable cost would be higher for our LNG merchant power plants, but if you look at slightly on a short-term or a long-term horizon, we expect that gas prices should settle somewhere in the range of $5 to $8, $6 to $8 per MMBtu. Now, if that is the scenario, your variable cost could be around ₹4, ₹4.5, which is very competitive even compared to battery also, because I think ₹2, ₹2.5 of solar cost plus if you add ₹3 of battery cost, that would be ₹5, ₹5.5 of battery storage solution cost.

I think we are confident enough that our gas-based power plant, particularly in merchant markets, would be highly competitive. That is the first question, if I'm not wrong, right?

I think on the second part, if you can just reiterate, what was the second question?

Right. Second question is on your views regarding the C&I market, the corporate market, even for your open gas project.

Is there any plan to maybe tie it up with the data center to supply sort of firm power or any of those thoughts?

Apoorva, I think as far as gas-based power plants are concerned with C&I segment, I think C&I segment would want renewable power, be it on RTC or anything, they would want a renewable power. Gas may not fit in to that category.

As far as data centers are concerned, we are looking at those opportunities. As of now, there is nothing concrete as to tell you on data centers where we can tie up our gas-based power plants, but again, data centers also are looking at more of renewable energy.

Scope of that is slightly lower. Also on economic side or commercial side, if you look at it, I cannot hedge my gas prices on a long-term basis.

If I do an PPA for a long tenor with a fixed price, there is an inherent risk which I'm taking by locking in my tariff. I think as of now, in a short to medium term, we don't see tying up gas-based power plants on C&I or on a data center basis.

Sure, sir. Understood.

Thanks a lot.

Hi, sir, thanks for the opportunity. Just firstly on your renewable segment, where previous participant also asked about the lower EBITDA year-on-year, you mentioned that we had some favorable claims from last year that is not available this year.

Could you maybe quantify how much that was for the full year, and is that going to be absent for this entirety of FY 2027? As in is this a fair run sort of quarterly margin rate to assume for the balance of the year, or are we going to see it reduce each quarter?

Shirom, I think we will not be able to give you guidance for the full year, but if I tell you on the absolute basis, this year, EBITDA was higher by around 66 crores, which compared to previous year, there was a LPS income which was booked previous year, which is 46 crores. If you remove 46 crores, then the EBITDA is higher by 66 crores.

Right. In the entirety of FY 2026, could you quantify how much was that LPS again, which might be

absent in FY 202-

yeah, for the full year?

For the full year, this was the number. In Q1, the LPS was 46 crores, and for the full year also was the same number.

Understood. Got it.

Just secondly on the capacity pipeline that you shared in your presentation, for quite a few of the projects, it seems that you have maybe delayed your expectation of when the plants are going to come up. For example, SECI 12, SECI 16 wind, they've been slightly extended into FY 2028 as well, similarly for some of your hybrid projects.

Could you explain what is driving this delay in capacity addition plans? Is it maybe transmission infra?

Is it any other delays that you could explain that?

It is mainly because of transmission availability, because of that we plan our execution based on the onward transmission line, it's coincide with the transmission line. Transmission line basically largely like PGCIL and other players are developing, we plan our execution in a way so that there will not be any capex spending not ahead of the transmission line availabilities.

Understood, sir. Just if you could share a couple of bookkeeping details here.

One is I know you said Nabha Power plant was only operational for 6 days, but if you could give sort of an indicative PLF for those 6 days, how much that was? Just secondly on your expenses basically, we're seeing your employee costs have actually come down year-on-year.

Is there any reason for that, and are we expected to see employee costs further reduce year-on-year in the subsequent quarters? See,

about your first question about Nabha Power PLF, on a quarterly basis, we have achieved about 85% PLF, so that is what generally the PLF level of Nabha Power project. Regarding the reduction in salary costs is maybe a one-off items, maybe because of the capitalization.

We have capitalized more salary costs. There is no other specific reason that's why it is continued to coming down.

Right, sir. Got it.

Thank you so much. That's it.

Thanks.

Yes, sir. Thanks a lot.

Sir, on the LNG availability and pricing, what is the kind of availability you are seeing? I believe you had indicated that you had contracted a few cargoes in the last call, are they coming through and what is the landed price currently?

Three cargoes which was contracted for meeting summer demand was already acquired and getting used also. As for the balance period, we bank on the basically spot cargoes.

We are banking the spot cargoes. As and when opportunity is available, we import the cargoes on a spot basis, but the next round onwards, yes, we have a contract of 10 cargoes available, which will be at a link with the Brent rate, not on the spot price, but spot price is higher at around $20 kind of a thing.

It is not affordable. We plan our purchase in a way that it is affordable to the consumer and we can able to get better margin, basically.

It's affordable in the merchant market also, so that we can have a reasonable margin available in the merchant market also. This year, only the merchant market we are looking at.

For whatever summer demand was there, we have honored our summer demand by this importing three cargoes.

Atul, as far as availability is concerned, there is no issue of availability. It is the question of what price those cargoes are available.

If required, we can import as many cargoes as you want, but the issue is of the price. We keep on looking at what is the demand and what is the price which can be absorbed under our PPAs and under the merchant market.

Sir. Sir, what was the capex in the first quarter?

I missed that number, I think you said it.

About total capex is about 2,200 2,300 crores all put together, out of which renewable is 1,550 crores, and thermal capex is 125 crores, and transmission about 120 crores, and light distribution is about 500 crores.

Sir. Thank you.

Thanks a lot.

Right. Thank you for taking my question.

Just one thing, sir. Wanted to check on the franchisee distribution business.

Is there anything you see in the pipeline in terms of new franchisee distribution and anything

that you could provide there in terms of guidance? Your voice is not audible.

Am I audible now?

You can go ahead.

Yes, exactly. Sort of echo is coming.

Am I audible now?

Yes.

Understood. Thank you for taking my question.

Just one thing: so on the franchisee distribution side, is there anything in the pipeline in terms of any new franchisee, be it UP or anything that you could provide there in terms of guidance?

I think UP will come post-election only. They have attempted to do it before election, but I think considering the agitations and all those things, I think it is going to come post-election, UP election.

Other, as there is a state subject. Thing is there, but we expect something if something will come possibly in the state of Maharashtra.

Otherwise, there is no concrete things, I would say, in the franchisee side right now.

Understood. Thank you, sir.

No other questions from my side.

Sir, thanks for the opportunity. I think this could be linked with one of the questions a participant asked.

DGEN plant that is on imported LNG and in this quarter, we also reported a PLF, though it's a lower PLF, but we are able to generate and sell power. At a $20 MMBtu, are there still buyers, takers, that's why there's a PLF, or we are getting at a lower rate and that's why we're able to sell?

Just to get a perspective on that.

If you look at $20, your variable cost will be about ₹13 kind of a thing. Though it's very difficult, I would say, but since we have a old cargoes available, we are able to buy at a competitive rate in bits and pockets, I would say, which will help us in targeting the merchant market, peak demand period kind of a thing, basically summer demand and peak demand target market.

We are able to sell at a much higher rate and earn our contribution on those market, right? $20 is quite challenging, I would say, at this rate.

I think, Vishal, just to add, at $20, you can sell at High DAM market, not in the regular market which is a capped at ₹10. We have been selling in the High DAM market and we have been getting better realizations.

This is doable because we have made a lot of flexibilization in our plants wherein frequent start and stops can be done and can be run on cyclical basis. Variable cost would be higher, but at $20, we are able to serve the High DAM market, but they will not give you an opportunity to work at very high PLFs.

This is about 2, 3 hours of every day, 2, 3 hours you can get that pricing.

Certain slots also, not on a continuous 2, 3 hours basis. It's a very challenging $20 to sell power at 20 at a $20 MMBtu is a quite challenging, I would say.

Okay. Then the cargoes that you have mentioned, at what rate we are able to get it or are they exhausted or probably, still is there and then we can have still maybe mid-teens sort of PLF in quarter 2 and going forward as well?

Cargoes was mainly for our distribution business, for meeting the summer demand. Though any opportunity is available, we keep on buying in a small lots, not in a full cargo kind of quantities.

Okay. Sure, sir.

I think that's all from my side. Thank you.

Sure.

Thank you, everybody, for joining Torrent Power earnings call. Stay safe and healthy.

Thank you so much.