Torrent Power gets ₹2,500 crore NCD ratings from two agencies

The rating actions in numbers

What the agencies say about the business

India Ratings says its ratings reflect a regulated cost-plus model for the distribution licensee and generation assets, which allows a 14%-16% post-tax return on regulated equity. It also says the acquisition of Nabha Power Limited in June 2026 was primarily funded through debt, increasing TPL's debt by INR65 billion-INR70 billion.

CRISIL says the acquisition of Nabha Power Ltd was completed effective 25 Jun 2026 and funded entirely through debt of ₹6,800 crore. CRISIL expects net leverage to exceed 3.5 times in 2028 and to peak above 4.0 times in fiscals 2029-2030.

Capex, leverage and the SECI PPA termination

CRISIL puts expected capex at around ₹67,000 crore for fiscals 2026-2032, to be funded at a debt-to-equity ratio of 70:30 or 75:25. Its rationale says the DGEN plant of 1,200 MW lacks long-term PPAs and its contribution is expected to remain subdued in fiscal 2027.

The filing also notes that a PPA for a 300 MW wind project between subsidiary Torrent Saurya Urja 2 Private Limited and SECI was terminated, disclosed on 7 Oct 2026. CRISIL says liquidated damages of ₹39.78 crore were paid and that management does not anticipate further liabilities. CRISIL attributes the termination to delays in transmission connectivity and GNA operationalisation.

What the ratings mean for Torrent Power's shareholders

The ratings cover debt instruments, not the equity, and the filing does not say what the proposed NCDs will carry in coupon, maturity or issue timing, or whether they have been placed. The effect on borrowing costs is not stated. The filing also does not say what replaces the offtake for the 300 MW wind project.

Both agencies name sensitivities that could move the ratings, including net leverage levels and project delays; the next dated step in the filing is the NCD placement, which no date is given for.

Reference: Original filing (PDF)