Torrent Power borrowings rise by Rs 9,325.03 crore in six months

Torrent Power Limited’s consolidated borrowings increased by Rs 9,325.03 crore in the six months ended September 30, 2026, reaching Rs 23,057.96 crore as Rs 7,381.19 crore of investing cash outflow exceeded Rs 2,085.60 crore of operating cash generation. The period included capital-asset spending and the acquisition of Nabha Power Limited.

Why did Torrent Power’s borrowings increase?

Torrent Power’s borrowings increased because non-current borrowings rose by Rs 8,377.49 crore to Rs 20,248.91 crore and current borrowings increased by Rs 947.54 crore to Rs 2,809.05 crore between March 31, 2026 and September 30, 2026. The total combines the two balance-sheet borrowing categories reported in the consolidated results.

The increase coincided with a Rs 13,372.11 crore rise in total assets to Rs 58,565.39 crore at September 30, 2026. Property, plant and equipment increased by Rs 2,543.36 crore to Rs 26,744.19 crore, while capital work-in-progress rose by Rs 1,421.69 crore to Rs 8,383.22 crore.

Total equity increased by Rs 1,971.12 crore to Rs 21,679.87 crore over the same six months, including Rs 20,511.01 crore of other equity. Total liabilities rose by Rs 11,401.00 crore to Rs 36,885.52 crore, compared with Rs 25,484.52 crore at the preceding year-end.

How did the Nabha Power acquisition affect Torrent Power?

Torrent Power completed its acquisition of 100% of Nabha Power Limited’s equity shares and convertible instruments on June 25, 2026 for Rs 3,632.35 crore. The cash-flow statement records Rs 3,618.59 crore used for acquisitions of subsidiaries, net of cash and cash equivalents, during the six months ended September 30, 2026.

Nabha Power operates a 2x700 megawatt coal-based supercritical thermal plant in Punjab, with 25-year power purchase agreements effective from 2014 with Punjab State Power Corporation Limited. Nabha Power contributed Rs 1,213.66 crore of revenue from operations and Rs 130.61 crore of profit during the six-month period.

Torrent Power accounted for the transaction under Ind AS 103, or Indian Accounting Standard 103 on business combinations, using provisional fair values because the purchase-price allocation exercise was in progress. Nabha Power’s provisional fair value of net assets was Rs 4,390.16 crore at the June 25, 2026 acquisition date.

Generation segment assets reached Rs 14,995.68 crore at September 30, 2026, compared with Rs 4,425.56 crore at March 31, 2026. Generation segment liabilities rose to Rs 6,314.22 crore from Rs 1,025.40 crore, while segment revenue for the six months was Rs 5,040.51 crore, compared with Rs 4,909.43 crore a year earlier.

Did Torrent Power’s operating cash flow cover investment spending?

Torrent Power’s operating cash flow did not cover its investing outflow in the six months ended September 30, 2026. Net operating cash flow was Rs 2,085.60 crore, down Rs 438.51 crore from Rs 2,524.11 crore a year earlier, while net cash used in investing rose by Rs 3,813.88 crore to Rs 7,381.19 crore.

Payments for property, plant and equipment, intangible assets, investment property and right-of-use assets were Rs 4,964.12 crore, compared with Rs 2,704.51 crore in the six months ended September 30, 2025. The Rs 3,618.59 crore acquisition outflow was another major use of funds, partly offset by Rs 1,126.56 crore of net proceeds from current investments.

Operating cash flow declined even as profit before tax increased to Rs 2,055.92 crore from Rs 1,964.44 crore. Trade receivables used Rs 1,234.55 crore of cash during the period, compared with Rs 1,038.25 crore in the prior-year six months, and cash generated from operations fell to Rs 2,304.02 crore from Rs 2,778.78 crore.

What changed in Torrent Power’s coverage and liquidity ratios?

Torrent Power’s debt-equity ratio was 0.97 at September 30, 2026, compared with 0.67 at March 31, 2026 and 0.51 at September 30, 2025. Its total-debts-to-total-assets ratio was 0.39, compared with 0.30 at the March 2026 year-end and 0.26 a year earlier.

The debt service coverage ratio was 1.65 for the quarter ended September 30, 2026, down from 3.24 in the June 2026 quarter and 4.46 in the September 2025 quarter. Interest service coverage was 3.92, compared with 4.60 in June 2026 and 7.25 a year earlier, as quarterly finance costs rose to Rs 439.19 crore from Rs 215.82 crore.

The current ratio was 1.30 at September 30, 2026, compared with 1.35 at March 31, 2026 and 1.89 a year earlier. Cash and cash equivalents declined to Rs 233.79 crore from Rs 766.61 crore at March 31, while financing cash inflow of Rs 4,762.77 crore included Rs 6,255.66 crore of long-term borrowing proceeds and Rs 600.03 crore of short-term borrowing proceeds.

Torrent Power said its present and future movable and immovable assets are mortgaged and hypothecated through a first pari passu charge for secured non-convertible debentures, term loans, fund-based working-capital facilities and non-fund-based credit facilities, subject to assets carved out under financing documents. The long-term-debt-to-working-capital ratio was 4.77 at September 30, 2026, compared with 3.25 at March 31, 2026.

Conclusion

Torrent Power’s first-half cash flows show that capital investment and the Nabha Power transaction required funding beyond internally generated operating cash. Financing activities supplied Rs 4,762.77 crore during the six months, while cash and cash equivalents declined by Rs 532.82 crore to Rs 233.79 crore.

The disclosed unresolved matter to watch is the completion of Nabha Power’s purchase-price allocation. Torrent Power reported provisional acquired net assets of Rs 4,390.16 crore at June 25, 2026 and said the valuation exercise remained in progress at the reporting date.