Torrent Power Shares Fell After Release of Q4FY25 Earnings: Revenue Dipped 1%, Proposed Dividend of ₹5

On May 15, 2025, Torrent Power shares slipped over 1%, reaching a day low of ₹1,418.10 at 09:35 AM, after opening at ₹1,474.10 on BSE. The fall in Torrent Power shares came after the release of its financial results for the fourth quarter and fiscal year ending March 31, 2025. The Board of Torrent Power has recommended a final dividend of ₹5.00 per equity share for FY 2025. The total dividend for FY 2025 amounts to ₹19.00 per share, which includes an interim dividend of ₹14.00 per share and a final dividend of ₹5.00 per share.

Torrent Power Q4FY25 Performance

For Q4 FY25, the Company posted a revenue of ₹6,456 crore, reflecting a slight decline of 1% compared to ₹6,529 crore in Q4 FY24. Total Comprehensive Income (TCI) showed a significant improvement, rising by 142% to ₹1,085 crore in Q4 FY25, compared to ₹448 crore in the same quarter of the previous year. 

Torrent Power FY25 Earnings

For the full fiscal year FY 2024-25, revenue totalled ₹29,165 crore, marking a 7% increase from ₹27,183 crore in FY 2023-24. For the full year, TCI reached ₹3,059 crore, up 63% from ₹1,882 crore in FY 2023-24

Key factors contributing to the increase in TCI include:

• A higher contribution from gas-based power plants.
• Growth in earnings from licensed and franchised distribution businesses.
• A reduction in tax expenses, primarily driven by the reversal of deferred tax liabilities of ₹637 crore, which was a one-time, non-cash item.
• Gains from the sale of non-current investments.
• A lower contribution from renewable energy businesses, affected by reduced plant load factors (PLF) due to adverse weather conditions and the partial commissioning of solar projects still in the stabilisation phase.
• Increased finance and depreciation costs due to capital expenditure and the commissioning of additional renewable generation capacities.

The Company continues to maintain a strong balance sheet, with one of the best financial ratios among private players in the power sector. As of March 31, 2025, the Company reported a Net Debt-to-Equity ratio of 0.40 and a Net Debt-to-EBITDA ratio of 1.41.

Torrent Power Outlook

The Company is well-positioned for its next phase of growth, with an under-construction pipeline of over 3 GW of renewable energy projects and a 3 GW Pump Storage Hydro power project. With a robust balance sheet, Torrent Power is focused on delivering sustainable growth for its shareholders.

Also Read: Torrent Power Sets Up New Subsidiary Torrent Urja Projects to Boost Renewable Energy Projects

Conclusion

While Torrent Power recorded a marginal decline in its revenue but posted a significant growth in net profit. This was backed by factors such as higher contribution from gas-based power plants and Growth in earnings from licensed and franchised distribution businesses.

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