Thank you so much. Good morning to all of you, and thank you for joining earnings call of Torrent Power for Q4 FY26.

First, I will take you through the performance of the quarter, after which we would welcome questions. We'll explain the performance of the company at PBT level first, and then we'll take you through the tax expenses separately.

Reported PBT for the quarter stood at 547 crores as compared to 619 crores in the corresponding quarter of last year, a reduction of 72 crores. PBT for the current quarter includes non-recurring provisions of 171 crores arising due to capping of power purchase cost for UNOSUGEN power projects in the year FY24-25 true-up order.

A similar restriction has been imposed in earlier years as well, which was contested by us and subsequently approved in our favor. As a result, a credit of 273 crores was recognized in P&L in the previous quarter of the current year.

Considering prudence, provision has been recognized in the current quarter. Based on the past precedent, we are reasonably certain that the current matter will be also approved in our favor.

Adjusted for these one-offs, PBT for the quarter stood at 718 crores as compared to 619 crores in the comparable quarter of last year, an increase of 99 crores, that is 16% on adjusted basis. Tax expenses were lower during the corresponding quarter of last year due to non-cash reversal of deferred tax liabilities of 637 crores.

Hence, the deferred tax liability is not comparable. Business-wise factors contributing to the performance are as follows.

First, receipt of favorable orders from the regulators approving the carrying cost of previous years of 186 crores. Receipt of incentive for installation of solar rooftop in Ahmedabad and Surat by 58 crores.

Reduction in T&D saving in licensed distribution units due to significant reduction in normative parameters by regulators partially offset by improved T&D losses in distribution franchisee business by 15 crores. Additionally, the contribution from the licensed distribution business was supported by the increase in ROE and ROCE on account of capitalization of assets and higher rate of returns on equity as per the new tariff regulations and other incentives increase of 15 15 15 crores.

We would like to take this opportunity to apprise certain pertinent changes in the tariff regulations with respect to allowance of ROE and ROCE on assets capitalized. There are two situations.

First is for assets capitalized on or after 1st April '25, returns are now allowed on a return on capital employed basis, wherein the underlying return on equity is permitted at base ROE of 13%, which can go up to 15% based on the achievement of incentive milestones stipulated. This is as compared with a fixed ROE of 14% in the previous regime.

For the assets capitalized prior to 1st April '25, the situation is: method of allowing of the return on equity on the regulatory equity base continue as under the earlier framework. However, regulator has allowed incentive to be approved on these assets also based on achievement of incentive milestones, which in effect has increased the effective ROE from 14% to 15%.

It is pertinent to note that the performance-based incentives included within the ROE are over and above the incentive which were already allowed in the form of saving in controllable expenses. This effectively has probability to improve ROE by 1% on an annual basis depending on the performance of the licensed distribution business.

Further, the regulatory gap for the company has been reduced by almost 800 crores, backed by better operational efficiency as well as lower power purchase cost with FPPPA remains the same as of last year. Contribution from thermal generation business, adjusted for the non-recurring items, decreased by 90 crores, mainly on account of two factors.

First, additional O&M expenses incurred during the quarter on account of scheduled maintenance; and second, reversal of certain provision made during the corresponding quarter of last year under the thermal generation segment. The third item, contribution from the renewable generation reduced by 20 crores, mainly on account of income from generation-based incentive on account of achievement of statutory threshold timeline allowed for the incentive.

The other factor contributing to the lower profitability was on account of increase in miscellaneous expenses and depreciation, which was on account of higher capitalization, mainly in the renewable segments. Increase in finance costs, backed by the higher capitalization and related borrowings.

This completes the explanation of the financial performance during the quarter. Moving on to the projects update.

With the progressive commissioning of 367 MW MSEDCL project, aggregate generation capacity of the company stood at 5.1 GW as on 31st March '26, comprising of 2.7 GW of gas, 2 GW of renewables, and 362 MW of gas-based capacity. Khavda transmission project got commissioned during the quarter.

For implementation of 1.6 GW thermal project in MP, activities are underway, wherein following major milestones have been achieved: first, power sale agreement executed with MP Power Management Company Limited; second, letter of award issued for boiler, turbine, and generator, as well as balance of plant; and environmental clearance received for the project. The second project update is on account of pumped-storage hydro project.

For implementation of 3 GW of pumped-storage hydro capacity, activities are underway, wherein the following major milestones have been achieved: energy storage facility agreement with MSEDCL executed; second, letter of award issued for the civil and hydromechanical package, as well as electrical and mechanical package; and third, environmental clearance received for the project. Regarding the Nabha Power acquisition, CP compliance are underway right now, and transaction is expected to be completed in the current quarter.

Apart from this, renewable projects of 4 GW and transmission project of Solapur are under implementations. Further details on the pipeline project have been summarized in our latest investor presentation available in our website.

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

We wish everybody to stay safe and healthy. Thank you so much, handing over to the operators.

Good morning, sir, and thanks for the opportunity. My first question is, sir, can you please help us again with the one-off in the quarter in generation, and explain the nature of the one-offs?

I think you mentioned opening commentary, but I could not understand it, yeah.

One-off item is the basically UNOSUGEN power purchase cost, which they have capped it for FY24-25, and true-up was due by March in the last quarter of We got the true-up order in the last quarter of March so in the last part of March they have capped the power UNOSUGEN power purchase cost particularly, and they have reduced the they have made a disallowance of 171 crores. That is one-off items for the UNOSUGEN power projects.

We as we highlighted, we informed that the in the earlier quarter similar allowance was given by 273 crores. We made a provision earlier, which was allowed by the regulators in the previous quarter.

We are hopeful that this will also will get approved in due course.

Understood. This order came in the March quarter, am I right?

March, yeah, before March,

before 31st of March '26.

Understood. My second question is, sir, can you help us with the gas availability and clarify about whether there is any availability risk of the gas for our gas-based power plants is in FY27?

Yes, as we informed earlier also, we have contracted three cargoes for meeting the summer demand, so that we are getting those cargoes. We are not being impacted because of the war situation between US and Iran.

For meeting the summer demand, we have contracted three cargoes, out of which two cargoes we already received it. The next cargo is expected to come in the month of June.

For meeting the summer demand. That situation is remain same.

The situation going forward, yes, price has gone up a bit, but we expect that the things will stabilize in some time, and supply will flow in, I would say, from the Strait of Hormuz. As far the supply is concerned, our view is that ample amount of gas is available in the market.

Though because of the current situation, price has gone up, but as far as supply is concerned, it's not a major concern, I would say. Proving availability is not the issue.

We will continue to recover the fixed cost based on the availability of gas. Price is yes bit higher, will take some time to stabilize.

My last question on the CapEx which you did in FY26. Can you help us with the number and also the segment-wise CapEx and your expectation of CapEx in FY27?

Can I give the full year details or the quarterly details you want?

No, full year details, sir. FY26 full details, yeah.

Licensed distribution and franchisee, we've incurred almost 1,600 crores CapEx for the full year. Transmission, since Khavda project is got commissioned, Solapur under construction right now, we spend about almost 550 crores in transmission projects.

Thermal project, particularly the coal-based project, we spent about 70 crores CapEx. The renewable is a substantial chunk close to 6,500 crores CapEx we spend for the renewables.

Understood, one. The CapEx number for FY27, sir, expectation, how much?

It will be definitely higher than this. I would say definitely much, much higher than this amount.

Is it fair to take 2x of this number?

Mohit, we will not be able to give you any guidance per se, but in investor PPT we have uploaded project-wise SCOD dates. Guidance would be difficult to give, but what we can say is that current year CapEx the next year CapEx should be higher than what we have incurred in FY26.

Understood, sir. Thank you, and all the best.

Thank you.

Thank you.

Good morning, Saurabh bhai and Rishi. My first question is around gas again.

Good to hear that two cargoes of gas out of three have come. What are the source countries from which you are getting gas now, and the LNG sourcing agreement which was with bp JERA, I think which kicks off, I think 2027, was that from Middle East countries or is the sourcing not specified in the contract?

Two two cargoes we have got it, it's not coming from the Strait of Hormuz. It is other than Strait of Hormuz.

We are getting the cargoes. The third cargoes also we expect we'll get it, should not be an issue.

That is what currently we foresee. The supply starting from current calendar year '27, yes, it is on with bp and JERA, and hopefully things will be normal by that time.

Should not have any material issue, I would say, in getting the supply in calendar year '27 onwards.

bp JERA would be how many cargoes in the next financial year?

In total, both of them combined, around 10 cargoes per calendar year.

Oh, that's a lot of gas. Is this only for Torrent Power or for Torrent Gas also?

No, we have to allocate for the Torrent Gas also.

How much for Torrent Power which is relevant for us?

About five five five cargoes for Torrent Power.

Got it. Sir, is the pricing in the contract for the three cargoes for summer demand this year's is around $10 is my understanding?

Sumit, we will not be able to give you exact pricing, but these are all fixed cargoes, and hence they are not high as what we see at the spot prices. They are lower than that.

Yeah. The second question is on the T&D segment.

You explained a couple of non-recurring items during the quarter, but what I'm more interested in is that after the shift in the return framework on a like-for-like basis, if you would have calculated your sort of return under the new regime versus the old regime, is that proving to be ROE accretive and to what extent? If you can sort of help explain this particular point.

Let me take that question. Basically, if you look at it, the ROE regime, which was earlier 14% flat, now it has been shifted to ROCE.

Assets which were capitalized pre-1/4/2025, those will also get incremental incentives if we are able to perform. If I look at it current year, the ROE is better than what we would have earned under the earlier regime.

Now the incremental incentives will depend on the performance-based incentives, which means if you're able to manage that or if you're able to get that, you'll have higher incremental ROE. Assuming that we'll be able to achieve those performance-based parameters, ROE definitely would be higher than what we got under the earlier regime.

Rishi, you are already one of the best operating discoms in the whole country. The AT&C losses are 2.5%, if I remember.

What better can you do? What is the performance— Yeah.

It's not only T&D losses, Sumit, it is a host of factors which also takes care of your availability of network. It also takes care of your smart meters, how are you achieving that.

It also talks about definitely T&D losses and all. It also talks about your collection efficiencies.

There are milestones being given. We are hopeful to achieve the most of the milestones, that is what the current expectation is.

Got it. Just the last question on the renewable segment.

There was a year-on-year decline in PBIT in the quarter from the renewable segment. Are you also getting impacted because of the curtailment issues, and how are you placed in terms of evacuation for the 4.3 GW peak that is under implementation?

How would you phase out the capacity addition after a rather lackluster year, if I may say so, in terms of capacity addition for Torrent Power at 250 MW plus? What is it looking through FY27, '28?

What is the phasing? How much will come in first half and second half of the year, if you can give some color?

We are not impacted by this scenario, I would say. We are back-to-back PPA, we are not worried.

Only open capacity, very miniscule open capacity. There is no curtailment, I would say, in our renewable power project, supply.

We are not impacted, and we don't expect that there will be some impact going forward also because of the curtailment thing.

As far as phasing is concerned, Sumit, effectively, we expect that next year there should be 1.2 to 1.4 GW of commissioning. If you look at our investor PPT, we have broadly given which projects are expected to come along with months which are expected to come, you can refer that phasing.

Yeah. Sorry.

I think yeah, that information is there. Thank you.

Yeah.

Hi, thank you. Just a first clarification on the one-offs.

If I understood correctly, generation reported EBITDA loss is 39 crores. You're saying there's a one-off of 171 crores, so that gets added, but that's still maybe 120, 130 crore of adjusted EBITDA, which is typically lower than the EBITDA you generate on the regulated asset.

What is driving that, or is there anything else we're missing? Secondly, on the one-off, just clarifying, 1,110-odd crore is the transmission distribution EBITDA.

You're saying there is 186 crore of one-off there, right? Just clarification on the one-offs.

Generation, as you rightly said, that the 171 crore was the charge we have taken in the generation business, which has impacted the generation EBITDA. Removing that, there is a about 90 crores reduction mainly because of the two factors: one is the higher O&M O&M expenses because of the scheduled maintenance, and we made some certain provisions last year which I mean reverse we have reversed certain provision last year, which is not the case this year.

That is that both has impacted the generation EBITDA. In terms of distribution, we got the carrying cost order in the month of March, and we have booked distribution income of 186 crores.

This is a routine feature, I would say. It's not a basically we don't see as a as a in a as a one-off because every year we are getting carrying cost order because of the regulatory asset we have built up so far.

It's a it will be a routine feature that we keep on getting this kind of a orders as and when the certain items will be approved in our favor.

Okay. The second one, the gas business, you mentioned there are 10 cargoes you have contracted, and some will be Torrent Gas and Torrent Power.

Just wanted to understand, how do you have to show availability, because seven, eight cargoes for Torrent Power will not be sufficient for showing 80, 85% availability. What do you have to show to get the full carrying cost, just understanding how that process works?

Also at the current gas prices, do you see any potential at all for selling into HP-DAM? Are you seeing any demand in HP-DAM, or do you see any LNG trading gain possibility at the current slope levels?

The 10 cargoes which you have booked from the next year onwards, we have contracted 10 cargoes, but always spot market or as and when required, we can buy it basically. It's not these are the cargoes available only.

Always opportunity is available to buy more cargoes also as and when we see the demand coming in and the price are reasonable. Yes, procurement will go based on the demand and the price going forward.

Satyadeep, just to add, effectively, if you look at it, last four or five years, my PPA-based gas-based thermal power plant, their average PLFs has been around 30 to 35%. If I assume that kind of PLF going forward also, six to seven cargoes are sufficient enough to take care of that.

Effectively, all these cargoes are take-or-pay contracts. If you assume at 85% PLF and book your cargoes, and if that is not lifted by the discom, then you are looking at take-or-pay penalties or take-or-pay payments to be made.

What we try to do is manage the flexibility of gas based on the discom demand. As Saurabh bhai rightly mentioned, that we anyways have spot available if there is a need for cargoes.

Gas is available, demonstrating availability is not at all an issue, which we have demonstrated earlier also while reporting certain about 35% PLF. Demonstrating availability is not an issue.

We will always demonstrate availability because ample amount of gas is available in the market.

You are trying to show availability based on maybe anticipated PLF, and in case the demand is higher, because availability has to be in sync with the schedule, in that case you would just book cargoes on spot and show availability? Otherwise there will be under-recovery if there is—

Gas is always available. It's a question of pricing, at what price gas is available.

If price is reasonable, we always import the gas, and that is what we did in previously also. We have a fair amount of coverage available next year onwards, demonstrating availability we don't foresee any issue.

The possibility of maybe HP-DAM at all at current prices, or LNG trading at current slope, are you seeing anything in the near term?

I think at current prices, there would be very difficult to sell power on the merchant prices at current $20 or $16 sort of gas prices. If prices go down, LNG prices, and demand considering what we have seen in last two months, if that remains, then there could be a possibility going forward.

For that, LNG prices in the international market should come down.

LNG trading? Given the current slope, are you—

No. Right now, we don't have many cargoes booked so there is no inventory right now with us for trading business.

Okay. Just last, very quickly on the leverage.

You've obviously exercised the optionality by using capital for Nabha Power and also for MP. Given the leverage that you're looking at right now, are you looking at deploying more capital on any new thermal bids or any other opportunity, or for now you think you're comfortable with the leverage and maybe execute the project you already have?

No, see if you look at the power sector is on a investment phase right now, and our leverage ratio is quite comfortable, and with the committed CapEx also, we don't see that the leverage will exceed beyond our reach, I would say. There is enough cushion available within the balance sheet to take up more projects if we are getting a good project at the good returns also.

There is no restriction, I would say, in terms of leveraging thing to take up any further opportunities for investment.

Satyadeep, all these thermal projects are typically five, six years sort of investment cycle which you see. Right now, the CapEx cycles or the committed CapEx which we have goes till FY31, '32.

If you really look at based on current profitability and the new projects coming in, the leverage is under control, and once the project commissions, it falls off significantly once EBITDA starts coming in. We feel that there is still room for us to take on incremental projects as far as thermal is concerned or renewable is concerned, considering that new projects will start giving us EBITDA or cash flows as soon as they get commissioned.

Current CapEx phasing is well-balanced, we will be able to manage any incremental project coming in to fund those kind of CapEx.

Okay. Thank you so much, sir.

Thank you.

Good morning to the team. I have two questions.

My first question to Mr. Saurabh is, in your point of view, how is Torrent Power preparing to capture future opportunities in renewable and distribution areas, while addressing challenges such as regulatory uncertainty, fuel cost volatility, and capital intensity?

What strategic levers will you be putting into place that we will see in the coming quarters that will help you to sustain the growth and keep the profitability stable? That's my first question.

I'll ask my second question after this. Thank you.

In terms of our investment plan, as we have already announced investment plan of renewable we are implementing 4 GW capacity with 28,000 crores CapEx. Coal also, we 1.6 GW with 26,000 crores CapEx.

Pump storage, 3 GW, we have investment plan about 14,000 crores. Distribution CapEx keep on happening every year.

It's a gradual CapEx across all our distribution area, yearly we expect about 2,000 2,000 crores CapEx at least for four, five years going forward. We are doing this Nabha acquisition.

In terms of CapEx plan, we have a fairly good CapEx plan, and we are looking at power sector per se is on an investment phase. Good opportunities are available, good projects are available, always we are ready to be, and our balance sheet is very strong, underleveraged balance sheet, ample room is available for the further investment also.

We are quite comfortable, I would say, in terms of our investment strategy.

Thank you. My second question to Mr.

Rishi Shah is, what improvements in financial reporting and analytics have been implemented to enhance the decision-making and investor confidence? How do you see technology and automation contributing to faster, more accurate financial operations in the coming quarters?

Thank you.

In terms of decision-making and all those things, as I explained in my earlier remarks also, that the power sector is on a investment phase, good opportunities are available for players like us, and the leverage ratio is also comfortable, and demand is also going to be strong. At least if you look at the last 10 years CAGR of the power demand is about 6% CAGR, and same thing we'll see that the same momentum is continuing.

Since we have a very balanced portfolio of licensed distribution, franchisee distribution, in terms of generation, we have a two-part tariff available for our key plants, and we have some open capacity. All kind of levers available to achieve a good performance, I would say, going forward.

Thank you and best wishes.

Thank you.

Am I audible? This is Bharani from Avendus.

Sir.

What is the adjusted EBITDA for 4Q FY26, sir, given the adjustments that you will be making in the generation segment and in the transmission distribution segment? After you adjust for that, what would be the adjusted EBITDA?

For the quarter, EBITDA report is 1,220 crores, and one-off is 171 crores we have charged. You have to add 171 crores in the reported EBITDA, that's what the adjusted EBITDA for the current quarter.

Would we adjust even the 186 crores in the transmission and distribution segment?

That I explained that it's basically normal, since we are carrying regulatory asset, it's bound to happen that we are going to get the carrying cost as and when on most of the orders coming in. It's a normal features, I would say, may not be considered as a one-off.

That is what our take is. It's a normal features with all I would say not only to us, with all distribution company because they are carrying regulatory asset, and they will approve the carrying cost every year.

Bharani, we are not considering that as a one-off as Saurabh bhai explained.

Okay. When it comes to the generation segment, when I'm adjusting for this 171 crores, we reported minus 39 crores.

The adjusted EBITDA comes to 132 crores plus side, compared to 233 crores for FY25 same quarter, that is the fourth quarter. This drop you're telling is because of what reason, sir, that I missed?

The first drop is on account of the schedule maintenance in our gas-based power plant during the course of the quarter, which has cost us additionally almost 40 crores. There was some reversal which made in the last similar quarter of last year, which is not the case currently in the current quarter, which has impacted the performance of the generation business.

Okay. Usually, there is some LNG gain or merchant gain in this segment.

I'm assuming there is no such number in this particular quarter?

The Q4 is always a winter month, the winter quarter would be less merchant sale and LNG sale, if you look at the both the quarter, comparable quarter of last year and the current quarter, there were no material, I would say, gain to be reported, I would say. Some gain will be there, but not material, I would say,

which we can talk about. One final clarification on this UNOSUGEN power purchase cost, which is resulting in this 171 crore number.

Is it because the regulator is yet to approve this 171 crores of extra cost incurred in FY24? No,

they have put a cap on the cost basically. Up to certain amount they have approved, beyond that they said as of now they are not approving it.

Similar situation we have had happened earlier also, and in the last quarter in Q2 they have removed the cap and approved the full power purchase cost. We expect that we will file appeal and decision will come in our favor going forward.

Coming to the renewable segment's EBITDA, which is at 186 crores, this is flattish to even lower compared to last year same quarter despite capacity additions. How should we read that?

It's a flattish number. Some reduction is there because of the GBI income in one of the project has getting expired.

Period is over, this is because of the mainly reduction in the GBI income. That has impacted the EBITDA of the current quarter.

Sorry, I didn't get, what is the GBI income?

Generation-based incentive which government give for the renewable project for certain period of time, 7 to 10 years. That has expired, that benefit was completed.

That was not available for the current quarter. That has impacted the profit of the renewable segment.

Understood, sir. When would we have Nabha Power's numbers getting consolidated?

We expect in the month of June we will be able to complete the transaction, because currently the Nabha L&T is in the process of complying the CP, condition precedent. Once it will happen, we'll consummate the transaction in the current quarter.

We expect the June numbers will with the Nabha Power project.

That is 1Q FY27 will have consolidation of Nabha.

That is what currently we expect.

Sir. Final question is on our gas supply.

If my understanding is right, we have three cargoes from IOC and Reliance, and three cargoes for the summer demand, and we also have that Japan cargo that we have booked from calendar year FY27. If my understanding is right, with all these cargoes, would we be able to first, have the availability for SUGEN assured for FY27, plus also generate power during the summer time in the next one year also?

No, your understanding is not right. I would say in terms of first point about the IOCL and the ONGC and Reliance gas, it's not a three cargoes.

IOCL currently into the force majeure because they were getting the gas from the Qatar, which is under the force majeure. Nobody is getting the gas from the IOCL right now.

In terms of ONGC and the Reliance gas, which is a domestic gas, government has pulled all the gas so that they can supply to the prioritized sector requirement like CGD and the fertilizer kind of thing. Power sector comes later.

Those gas is not available to the power sector. We are not getting the gas because the government has pulled the gas of Reliance and ONGC.

That is not available. In terms of your second point about the three cargoes, yes, the two cargoes we have received, one cargo is expected to get in month of June.

Any further requirement we can meet from the spot purchase or maybe short-term contract we can able to do during the course of the balance period of the year. In terms of cargoes coming in from the Japan and the bp basically, we'll keep on getting from the next year onwards.

That will continue.

Right now, with the three cargoes that we are getting from summer demand, we are meeting availability of SUGEN and UNOSUGEN, and also will be able to generate if required from DGEN plant, is the understanding right, sir?

Three cargoes are available for our distribution. We are optimizing our distribution requirement and meeting the availability criteria.

Any additional gas available through this optimization will be used for the merchant sale.

You mentioned in one of the replies that at $16 to $20, it's difficult to make money in the merchant market. Just wondering, given it will come to variable cost of around 9, 10 rupees, the high-priced DAM market will have merchant prices higher than that.

Just wondering why would you say that?

No, no, we are not saying that it would be difficult. What we are saying that on a RTC basis it would be difficult, but on the peak market, which is our target market, we are able to do something in the peak market, not on the RTC basis, I would say.

Bharani, you can't buy a cargo only for the peak market. You need some basic demand for RTC wherein you then book the cargo and then supply.

It is not just peak market for which you buy a cargo, there are logistical issues also involved. With our three cargoes, we are optimizing our all-over demand requirement and then doing it.

Final two questions. With the Japan and bp cargo coming from next year, would we have enough comfort for the full year instead of relying on this summer cargo?

Will that be the right understanding?

With JERA and bp cargo, yes, and additionally we can always buy the spot cargoes or do the short-term contract, will be enough to demonstrate the availability for SUGEN and UNOSUGEN.

Sir. Pardon me, last question on this three summer cargoes, you said we got two.

Does that mean that this is coming from the non-Persian Gulf source?

You are right. You are right.

The last cargo that we are expecting in June would also be non-Persian Gulf, it may not be impacted, is that understanding right?

Yes, you are right.

Sir. Thank you so much, and all the best.

Thank you so much. Thank you.

Hi. Thanks for the opportunity, sir.

Sir, just one clarification on the CapEx guidance which you mentioned. Roughly you mentioned it's around 28,000 for renewables, 26 for coal, and 14 was for the PSPs.

That takes the total to roughly 68 plus your normal distribution CapEx to the tune of 1,500 or 2,000 per annum, that takes the total to 80,000 over a period of 5 years. Is this a fair assumption if we assume that annually that number could range in the range of 15 to 20?

Coal, you say 26, which is Coal, you say 26,000 crores, which is about 23,000 crores. Only one correction.

Yeah. Yeah, 26,000, sir.

Total 80,000 crores over next 5 years, is that a fair assumption?

Yes, you can take this. You can have assumptions, yes.

We are working with this kind of assumptions.

Okay. I know if you just want to phase it out, I believe probably, second or third year onward, it would be heavy CapEx depending upon the milestone which you are achieving on the construction phase.

Any— You are

right.

Okay. Fair enough, sir.

Secondly, sir, on the connectivity part, can you just mention how the connectivity is placed for the upcoming renewable projects?

Connectivity in most of the projects are in place right now, connectivity is not the issue. Upcoming transmission line which has to come in on time so that we can implement all our renewable projects on time, as per the expected schedule, I would say.

Otherwise, connectivity is not a issue for our renewable projects, available for the most of the project, I would say.

Sir. Lastly, on any development on the parallel licensing?

No further development at this moment.

Thank you, sir. That's all from my end.

Thank you so much.

Hi, sir. Thanks for the opportunity.

Just had a question on your merchant LNG gain. You said, of course, 4Q was not material, but for the full year, could you maybe quantify how much was the overall gain during the year and how many merchant units were sold?

We don't bifurcate it between LNG sales and merchant. If I look at the total gains from both of them, it would be around 675 crores for the full year.

In terms of units what we sold, it would be around 1,400 MUs.

Got it, sir. Just to understand on your Nabha Power acquisition, this is 6,900 crores acquisition, how much would be the debt component and equity component?

Do you have a sense of a rough split? Secondly, second question on Nabha would be how much of this would add to your fixed asset base going ahead?

Thirdly, what are the tariffs you're looking at in Nabha Power on that plant?

It's a acquisition enterprise value, as we announced, about 6,800 crores. They have about 3,400 crores debt, the balance is the equity value.

Plant to it is about close to 3,500 to 4,000 crores for funding of the projects. Tariff will be as a two-part tariff, basically.

Variable cost is pass-through, that is what the business model of Nabha is.

Would you be able to share what kind of tariffs we are expecting at least on the fixed side?

We don't have information available right now, but we can share the information offline.

Understood, sir. Thank you so much.

Thank you.

Sir. Thank you so much.

Sir, a few questions on the renewable pipeline. The MSEDCL project, when should we expect the COD?

In fact, out of 367 MW, most of the capacity we have commissioned. Some capacity is not commissioned because of the location of the land which you have got it from the government is not ideal suitable, we have asked for the replacement, and from the government.

It's a basically leased land which was provided by the government, we expect a replacement from the government and we expect next 6 to 9 months, I think it should get commissioned.

You can do partial billing for the portion of the capacity that you have commissioned?

Commission we have started billing, non-commissioning is a because a government issue because it's a scattered project. It's located various locations we have installed solar project in Nashik area.

Once that issue is sorted out, in fact whatever capacity we have commissioned, we have started billing also.

Got it. Sir, for the SECI 12 project, COD?

COD we have mentioned— We have applied for extension there. It will take some time.

Should I expect say sometime in FY27, '28 or '28?

'27, I think, before March '27 it will get commissioned.

Got it. Sir, are you still going ahead with the merchant power 600 MW merchant project, or are there any changes?

We are doing that project. Dhruv, if you recollect our past interactions, what we have said is that all these merchant, right now is merchant, we are commissioning those capacities, but as and when going forward if we win any tenders or bids, we will be allocating that to those bids.

Effectively, it may not remain merchant for the life of the project.

You go ahead with the project construction and everything, you are going ahead with that.

Yeah. Yes, yes.

Okay. Lastly, we have seen that a lot of developers are doing is the switch to batteries because you also have a lot of FDRE projects and hybrid projects.

Any configuration changes in your projects and any cost reduction or probably improvement in IRRs that you're seeing?

Not as of now. I think most of the projects have a small batteries, some of our projects which are hybrid or RTC projects, they have battery component already built-in, but these are all not very large.

There will not be a significant shift in cost.

Okay. Sure, sir.

Perfect. Thank you so much and all the best.

Thanks.

Thank you.

Sir. Thanks for the opportunity once again.

Sir, a few clarification. One is did you used to book generation-based incentive for the RE mainly in the fourth quarter?

Is that understanding right?

No, it was across the year. Throughout the year.

Throughout the year, every quarter.

Understood, sir. Second question on—

One of the project the time period and the amount was used basically, so that is why it discontinued from the last quarter onwards, last quarter onwards, yes.

Understood, sir. Sir, given the wind-heavy portfolio, how do you see the impact of DSM, the new regulation?

Can you please help us with the current status of the new regulation?

Our portfolio is not a wind-heavy, I would say. It's a balanced portfolio.

Look at the 4 GW capacities we are commissioning, almost 50% is coming from the wind, 50% is coming from the solar. It's not a wind-heavy portfolio, I would say.

I'm talking about, sir, existing portfolio.

Sorry?

Existing portfolio has more wind. How do you see the impact of DSM, sir?

Do you see the—

Portfolio about 60 60% wind, 40% solar here. Some impact is there in terms of PLF, I would say.

Understood. Maybe we'll take it offline.

My third question, sir, are you seeing the incremental opportunity, thermal bidding opportunity for the states, and are we looking to bid for it?

There are a couple of states contemplating of announcing the thermal capacity, we are actively looking at it.

Understood. My last question on the merchant capacity, which you spoke about on the RE side, is there any configuration between the solar and wind you're looking at, and are you also looking to add battery to that to ensure that you get a higher tariff?

If you look at our profile of our bidding pattern of last 2 years, I would say, we are more inclined towards a complex project like hybrid project, RTC, pumped project, so that is what we are focusing more on those kind of projects so that we can get better tariff, also better IRRs also.

Sorry, sir, my question was on the merchant capacity of 603 MW peak, which you have mentioned in the PPT. Are you looking at what is the mix between wind and solar, and are you looking to add also battery in this?

Mohit, if you look at our 603 MW, it would be slightly higher on the wind side out of and there is some solar. Right now we are not contemplating any battery usage there.

Going forward, if we feel that it is required, we may add on. As of now, we are not adding any battery because it is more of wind, which is typically non-solar hours and where you can get better returns.

Understood, sir. Thank you and best wishes, sir.

Thank you.

Thank you.

Hi, sir. Thank you for the opportunity.

Sir, do you have any current capacities tied up on the C&I side? Do you plan to tie up significant future capacity on the C&I side, and what is your view on the C&I segment?

Current— I think Neil, we currently have around 860 MW of C&I projects under construction. We keep on looking at tying up C&I consumers as and when they are available.

We are open of tying up additional capacities, but as of now we have 860 MW of C&I projects under construction.

Understood, sir. All right, thank you, sir.

Thank you.

Hello, am I audible?

Yeah.

Sir, just wanted to understand how you're thinking about your gas-fired plant business in the long term, given that LNG as a fuel has proven expensive for India, and that's one of the reason why we have seen Indian plants running at 15, 20% PLFs. Also, there was an impending global gas glut that was expected to come in 2027 due to increase liquification capacity, and due to Iran war that has also been pushed forward.

Just wanted to understand what kind of PLFs are you expecting over long run? Thank you.

Basically, you are right, there's a gas glut is coming in basically, lots of gas is going to flow in. Maybe because of the Iran war, some pushback will be there in terms of timing, I would say, not in terms of availability going forward.

Otherwise, we don't see any change in the situation except some timing will be delayed, I would say, more gas will be flow, I would say. In terms of PLF, it's very difficult to predict the PLF, but yes, availability may not be the issue going forward.

The price, one has to monitor the price and then take your calls. The other thing is, if you look at our portfolio, around 50% of our portfolio of gas-based power plants we have tied up long-term PPAs with our own discoms.

There, we are getting fixed cost recovery on the availability basis, that should not be an issue. As far as merchant capacities are concerned, we we take benefit of short-term pricing mismatches.

This year it was this year it is it is slightly constrained because of LNG very high cost of LNG, but if you look at last four to five years, we have been able to make decent profits out of this merchant capacities which we have. Our expectation going forward is once all this subsides, India as a market, demand should improve, and there will always be a deficit of power going forward, which will allow us to take benefit from our merchant capacities.

That is the expectation right now.

Sir. Thank you so much.

I just forgot to ask one question. After June of this year, what is the source of gas we will have to show availability at SUGEN and UNOSUGEN?

It's basically short-term we have to buy from the short-term market, basically spot fee, and we do the short-term contracts. So— Gas is available, gas is not the issue.

Basically, at what price we are getting the gas—

Bharani, I think the question is the price, not availability of gas. For demonstrating availability, gas is amply available.

Now whether discom is willing to take that gas and use that electricity at high rates, or they are able to manage it from buying it from the merchant market, that balancing will have to be done. As far as availability of plant is concerned, there is no shortage of gas.

It is only the price which is higher.

Sure. When you say spot, it would be gas from IGX, something like that, or—

No, no, spot cargoes. What is trying to say spot cargoes.

Right now, domestic gas is not available as government has pulled everything, we have to import the gas.

Understood. Hence, when the tenders are invited, you would be able to get it in the short notice.

Which sort of tenders?

The spot cargo.

Yeah. We keep on doing.

If you are procuring cargoes, we float a tender in the international market, and then we bid it out.

Understood. That's it from my side.

Thank you everybody for joining Torrent Power earning call. We wish everybody to stay safe and healthy.

Thank you so much.

Thank you.

Thank you.