L&T Power Development Limited (“L&T PDL”), a wholly owned subsidiary of the Larsen & Toubro Limited, has executed a Securities Purchase Agreement on February 16 ,2026 to divest 100% of its stake in Nabha Power Limited to Torrent Power Limited.
The transaction will be carried out through L&T Power Development Limited, a wholly owned subsidiary of L&T.
The agreement involves the sale of 100% equity and convertible instruments held in Nabha Power Limited. The consideration for the transaction stands at ₹3,660.87 crore, subject to closing adjustments. The completion of the sale is expected on or before June 30, 2026, subject to regulatory approvals and agreed conditions.
As of March 31, 2025, Nabha Power reported a turnover of ₹4,421.54 crore, contributing 1.73% to L&T’s consolidated turnover. Its net worth stood at ₹3,553.00 crore, representing 3.64% of L&T’s consolidated net worth.
Nabha Power owns and operates a 1,400 MW coal-fired thermal power plant in Rajpura, Punjab, comprising 2 units of 700 MW each. Commissioned in 2014, the project operates under a 25-year Power Purchase Agreement. It has long-term Fuel Supply Agreements with SECL for 2.775 million MT and NCL for 2.464 million MT annually.
In FY25, the plant recorded a Plant Availability Factor of 95.36%. In July 2024, it achieved a Plant Load Factor of 94.33%, ranking 2 among thermal power plants above 500 MW in India.
Larsen and Toubro is an Indian multinational engaged in EPC projects, manufacturing and services, with operations across multiple geographies. Torrent Power is an integrated power utility with operations in generation, transmission and distribution, and is headquartered in Ahmedabad, Gujarat.
As of February 16, 2026, at 1:45 PM, Larsen & Toubro share price on NSE was trading at ₹4,175.00 up by 0.03% from the previous closing price.
Read More: Larsen & Toubro Share Price in Focus; Wins Road Development Contract in Dubai!
The divestment of Nabha Power marks a significant transaction involving ₹3,660.87 crore and will result in Nabha Power ceasing to be a subsidiary of L&T upon completion. The deal remains subject to regulatory approvals and agreed closing conditions.
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Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 16, 2026, 3:25 PM IST
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