Torrent Power has received affirmation of its long-term credit rating at IND AA+/Stable for its existing non-convertible debentures and a short-term credit rating of IND A1+ for its commercial paper. In addition, a long-term credit rating of IND AA+/Stable has been assigned to the company’s proposed non-convertible debentures amounting to ₹2,000 crore. The ratings reflect Torrent Power’s regulated business profile, healthy operating performance, and stable financial metrics.
India Ratings and Research has reaffirmed the company’s strong credit profile, citing its sound financial position and operational efficiency. The key rating actions include the affirmation of the long-term rating of existing non-convertible debentures at IND AA+/Stable, the affirmation of the short-term rating for commercial paper at IND A1+, and the assignment of an IND AA+/Stable rating to the proposed ₹2,000 crore non-convertible debentures.
The ratings are supported by Torrent Power’s regulated cost-plus model across its distribution licensee and generation businesses, which allows a post-tax return on regulated equity of 14%–16%. The company continues to demonstrate robust operating performance in its distribution licensee and distribution franchise areas, resulting in healthy EBITDA generation, with these segments contributing over 50% of total EBITDA.
Credit metrics remain healthy, with net leverage declining to 1.6x during the first half of FY26, supported by higher EBITDA generation from the renewable energy segment. This improvement underscores the company’s balanced growth strategy and stable cash flow profile.
On the growth front, Torrent Power has a diversified under-construction portfolio, including approximately 3.6 GW of renewable energy projects at various stages of development, with a total project cost of around ₹244 billion. The company has also entered into an agreement for a 2.0 GW / 16 GWh pumped storage plant with Maharashtra State Electricity Distribution Company Limited (MSEDCL), which is expected to further enhance its installed capacity.
Torrent Power Limited (TPL) is an integrated power utility and one of the largest private sector players in India, with interests spanning power generation, transmission, and distribution. The company has an operational thermal generation capacity of 3.1 GW and renewable capacity of 1.9 GW. TPL holds distribution licences in Ahmedabad, Gandhinagar, Surat, Dahej SEZ, Dholera SIR, and the Union Territory of Dadra and Nagar Haveli and Daman and Diu, along with distribution franchises in Agra, Bhiwandi, and SMK.
