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Reported PBT: INR619 crore, up from INR617 crore in the same quarter last year.
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Adjusted PBT: INR654 crore, higher by INR37 crore compared to the previous year.
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Sales Growth: Above 6%.
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Distribution Business Contribution: Improved by INR112 crore.
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Demand Growth: Approximately 4% across all distribution areas.
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Merchant Power and LNG Sales Contribution: INR88 crore.
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Renewable Energy Impact: Net positive impact of INR13 crore.
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Equity Raise: INR3,500 crore through QIP.
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Distribution Loss: 32.34% in licensed distribution business.
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Net Debt to Equity: 0.40.
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Net Debt to EBITDA: 1.41 times.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Reported PBT for the quarter increased to INR619 crore from INR617 crore in the corresponding quarter of last year.
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Sales growth was above 6%, with significant contributions from the distribution business.
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The company successfully raised INR3,500 crore through a QIP, marking the first equity raise in three decades for the Torrent Group.
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Distribution business set new operational benchmarks with low distribution losses, comparable to global standards.
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The company secured a long-term energy storage facility agreement with MSEDCL for 2,000 megawatts, indicating strategic growth in renewable energy.
Negative Points
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The 420 megawatt TPL solar project is still in the stabilization phase, negatively impacting consolidated PBT.
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Merchant power and LNG sales contributed only INR88 crore due to elevated LNG prices and subdued demand.
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The wind project faced a negative impact of INR30 crore due to inclement weather conditions.
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Demand growth was only about 4% across all distribution areas, indicating slower than expected growth.
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The NVVN tender pricing is slightly lower compared to last year, potentially impacting profitability.
Q & A Highlights
Q: What was the CapEx in FY25 and the CapEx amount budgeted for FY26? Can you break this up across the business? A: CapEx for license distribution was about INR1,300 crore for the full year, franchisees about INR275 crore, and commission about INR250 crore, totaling close to INR1,900 crore, excluding renewable CapEx. For FY26, distribution CapEx is INR2,000 crore, INR175 crore for the license distribution business, and about INR250 crore for franchisee distribution business.
Q: Can you provide an update on the NVVN contract signed in March? Is it a take-or-pay contract, and what is the minimum guaranteed volume? A: The guaranteed volume is more or less in line with last year, with similar specifications and methodology. The contract duration has been extended to October, and demand is expected to pick up as summer progresses.