Torrent Power Q3 Profit Soars 35%, Board Declares ₹15 Dividend

Introduction

Torrent Power Limited announced a strong financial performance for the third quarter of the fiscal year 2025-26, reporting a significant 35.2% year-on-year increase in its consolidated net profit. The company's board also declared a substantial interim dividend, reflecting its solid operational results and positive outlook. The announcement on February 10, 2026, was well-received by the market, with the company's shares closing higher.

Robust Financial Performance in Q3

For the quarter ending December 31, 2025, Torrent Power's consolidated net profit rose to ₹643 crore, a notable increase from the ₹475.6 crore recorded in the same period of the previous fiscal year. This growth was supported by a steady rise in revenue and improved operational efficiency. The company's total revenue from operations for the quarter stood at ₹6,777.8 crore, marking a 4.3% increase from ₹6,499 crore in Q3 FY25. The performance indicates consistent demand and effective management across its business segments.

Operational Efficiency Drives Margin Expansion

A key highlight of the quarter was the significant improvement in profitability metrics. Torrent Power's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged by 26.2% year-on-year, reaching ₹1,403 crore compared to ₹1,111.9 crore a year ago. This substantial growth in operating profit led to a notable expansion in EBITDA margins. The margin for Q3 FY26 widened to 20.7%, a significant improvement from the 17.1% reported in the corresponding quarter of the previous year. This expansion points to better cost management and enhanced operational efficiencies.

Dividend Announcement for Shareholders

In a move that benefits its shareholders, the Board of Directors approved an interim dividend of ₹15 per equity share for the financial year 2025-26. The dividend will be paid on the company's 50,39,03,543 equity shares, which have a face value of ₹10 each. The company has set Monday, February 16, 2026, as the record date to determine shareholder eligibility for the dividend payment. The dividend amount is scheduled to be paid to eligible shareholders on or before March 12, 2026. This declaration underscores the company's commitment to sharing its financial success with its investors.

Strategic Fundraising Plans

Alongside its quarterly results, Torrent Power also announced a significant strategic initiative to bolster its financial resources. The company's board has sanctioned a plan to raise funds up to ₹7,000 crore. This capital will be raised through the issuance of Non-Convertible Debentures (NCDs) on a private placement basis. Such fundraising efforts are typically aimed at financing capital expenditure for new projects, managing debt, or supporting other long-term growth objectives, positioning the company for future expansion.

Q3 FY26 Financial Highlights

To provide a clear overview of the quarterly performance, the key consolidated financial figures are summarized below.

Segment Performance Insights

The company's consolidated results show that the Transmission and Distribution segment continues to be the primary revenue driver. For the quarter ended December 31, 2025, this segment reported revenues of ₹5,746.70 crore, highlighting its critical role in the company's overall operations. The Generation segment also contributed positively, recording a profit before tax, depreciation, and finance costs of ₹463.35 crore for the same period.

Market Reaction and Stock Performance

The positive financial results and dividend announcement were met with optimism in the stock market. On the day of the announcement, February 10, 2026, shares of Torrent Power closed at ₹1,483 apiece on the stock exchange. This represented a gain of 3.91% for the day, reflecting strong investor confidence in the company's performance and future prospects.

Conclusion and Forward Outlook

Torrent Power's third-quarter results for FY26 demonstrate a period of strong growth, characterized by increased profitability and operational efficiency. The 35% jump in net profit and the declaration of a ₹15 interim dividend highlight the company's robust financial health. Looking ahead, the planned fundraising of ₹7,000 crore through NCDs will be a key factor in enabling the company's next phase of growth and expansion projects. Investors will be watching the execution of these plans and the upcoming dividend payment closely.