Torrent Power Limited completes Rs 3,632 crore Nabha acquisition

Torrent Power Limited completed its Rs 3,632.35 crore acquisition of Nabha Power Limited on June 25, 2026, adding a 1,400 megawatt (MW) coal-based thermal plant in Punjab. Nabha Power contributed Rs 1,145.02 crore of revenue from operations and Rs 122.99 crore of profit in the quarter ended September 30, 2026.

What did Torrent Power acquire and when did it close?

Torrent Power acquired 100% of Nabha Power’s equity shares and convertible instruments from L&T Power Development Limited for Rs 3,632.35 crore, completing the transaction on June 25, 2026. L&T Power Development is a wholly owned subsidiary of Larsen & Toubro Limited, and Nabha Power became a wholly owned Torrent Power subsidiary from the acquisition date.

The securities purchase agreement was signed on February 16, 2026, before completion in June. Torrent Power’s consolidated entity list includes Nabha Power as a direct subsidiary effective June 25, so the acquired company’s reported contribution covers only the period following that date within the six months ended September 30, 2026.

Nabha Power operates a 2x700 MW coal-based supercritical thermal power plant in Punjab, giving the asset 1,400 MW of capacity. Torrent Power classifies thermal generation within its generation segment, which also includes generation from gas and coal sources and trading of regasified liquefied natural gas.

What contracts support Nabha Power’s electricity sales?

Nabha Power has long-term power purchase agreements, or PPAs, with Punjab State Power Corporation Limited for 25 years effective from 2014. The disclosed arrangement identifies the Punjab utility as the plant’s contracted buyer and establishes a long-duration offtake framework for the 1,400 MW facility.

Torrent Power does not disclose the PPAs’ tariff terms, exact expiry date, fuel-supply arrangements, plant availability or the remaining contracted capacity in this announcement. The filing therefore establishes the counterparty and 25-year contract duration, but does not provide the operating measures that would explain revenue per unit of generation.

The acquired business was included in Torrent Power’s generation segment after June 25. Consolidated generation revenue rose to Rs 3,329 crore in the quarter ended September 30, 2026, from Rs 2,420.92 crore in the quarter ended September 30, 2025, while generation segment result before finance costs and depreciation increased to Rs 709.52 crore from Rs 459.36 crore.

How much did Nabha Power contribute after acquisition?

Nabha Power contributed Rs 1,145.02 crore of revenue from operations and Rs 122.99 crore of profit for the quarter ended September 30, 2026. Its contribution for the six months ended September 30, 2026 was Rs 1,213.66 crore of revenue and Rs 130.61 crore of profit because consolidation began on June 25 rather than at the start of April.

The difference between the six-month and September-quarter figures was Rs 68.64 crore of revenue and Rs 7.62 crore of profit. That represents the reported contribution from June 25 through June 30, based on the difference between the two periods disclosed for Nabha Power.

Torrent Power reported consolidated revenue from operations of Rs 9,801.58 crore in the September 2026 quarter, compared with Rs 7,876 crore a year earlier. Consolidated profit for the period was Rs 837.96 crore, against Rs 741.55 crore in the September 2025 quarter; the filing separately discloses Nabha Power’s contribution but does not attribute the group-wide increase solely to the acquisition.

How was the Nabha Power acquisition recorded in the accounts?

Torrent Power recorded the transaction under Indian Accounting Standard 103, Business Combinations, using provisional fair values because the purchase price allocation exercise remains in progress. Nabha Power’s provisional fair value of identifiable net assets was Rs 4,390.16 crore at the June 25, 2026 acquisition date, compared with total consideration of Rs 3,632.35 crore.

The consolidated cash-flow statement recorded Rs 3,618.59 crore as acquisition of subsidiaries net of cash and cash equivalents for the six months ended September 30, 2026. This amount differs from the Rs 3,632.35 crore transaction consideration because the cash-flow presentation is net of acquired cash and cash equivalents.

Consolidated generation assets were Rs 14,995.68 crore at September 30, 2026, compared with Rs 4,425.56 crore at March 31, 2026. Generation liabilities were Rs 6,314.22 crore at September 30, compared with Rs 1,025.40 crore at March 31, although Torrent Power does not allocate these movements separately between Nabha Power and its other generation operations.

What changed in Torrent Power’s financial position after the transaction?

Torrent Power’s total consolidated assets were Rs 58,565.39 crore at September 30, 2026, up from Rs 45,193.28 crore at March 31, 2026. Non-current borrowings rose to Rs 20,248.91 crore from Rs 11,871.42 crore, while current borrowings increased to Rs 2,809.05 crore from Rs 1,861.51 crore over the same period.

The consolidated debt-equity ratio was 0.97 at September 30, 2026, versus 0.67 at March 31, 2026 and 0.51 a year earlier. Finance costs for the six months ended September 30 increased to Rs 732.18 crore from Rs 427.94 crore in the previous corresponding period, but the announcement does not assign the change specifically to the Nabha Power acquisition.

Net cash generated from operating activities was Rs 2,085.60 crore for the six months ended September 30, 2026, compared with Rs 2,524.11 crore a year earlier. Investing cash outflow increased to Rs 7,381.19 crore from Rs 3,567.31 crore, including Rs 4,964.12 crore spent on property, plant, equipment, intangible assets, investment property and right-of-use assets alongside the Nabha acquisition cash outflow.

Conclusion

Torrent Power has added a wholly owned 1,400 MW Punjab thermal asset for Rs 3,632.35 crore, supported by PPAs with Punjab State Power Corporation Limited effective from 2014 for 25 years. Nabha Power’s first reported post-acquisition contribution was Rs 1,145.02 crore of September-quarter revenue and Rs 122.99 crore of profit, while the group’s generation revenue rose year on year to Rs 3,329 crore.

The next disclosed matter to watch is completion of the purchase price allocation exercise, which remains in progress and could alter the provisional Rs 4,390.16 crore valuation of Nabha Power’s identifiable net assets. Subsequent results will also show how the plant contributes over a full reporting period and whether consolidated borrowings, which totalled Rs 23,057.96 crore across current and non-current categories at September 30, 2026, change further.