Torrent Power shares: Why brokerages are not upbeat post Q3 earnings
Torrent Power shares fell 3.77% to Rs 1427.5 today against the previous close of Rs 1483.30. Market cap of the firm slipped to Rs 71,929 crore.
- Feb 11, 2026,
- Updated Feb 11, 2026 5:47 PM IST
Torrent Power shares ended nearly 4% lower on Wednesday after the power sector firm reported its Q3 earnings. Torrent Power shares fell 3.77% to Rs 1427.5 today against the previous close of Rs 1483.30. Market cap of the firm slipped to Rs 71,929 crore.
Elara capital has downgraded its stance to 'sell' from 'reduce' on high valuation concerns.
However, it has retained its target price at Rs 1,313. With a planned capex of Rs 20000 crore in FY26 -27 and a majority of renewable assets secured under long-term power purchase agreement (PPA), growth visibility is strong.
"However, current valuation offers limited scope for further upside. So, we revise to Sell from Reduce with SOTP -target price retained at Rs 1,313. We cut our earnings estimate by 5.3% for FY27E but raise it for FY28 E by 13.8%, considering that the projects delayed in FY27 will be commissioned in FY28," said Elara Capital
JM Financial has retained its 'reduce' stance on the stock. It termed Q3 earnings below expectations.
"Recently, the company has undertaken several new growth initiatives such as renewable energy (5 GW under development), pumped hydro storage (8.4 GW pipeline), thermal projects (1.6 GW under development) and transmission (104 km, 400 kV under pipeline); however, the earnings from these are expected to materialise in the long term. We estimate the company to report FY25-28 CAGR of 8%/ 12%/ 3% in Revenue/ EBITDA/ PAT. We maintain REDUCE rating with SOTP based target price of Rs 1,340," said JM Financial.
In Q3, the firm reported a 35 per cent year-on-year (y-o-y) rise in consolidated net profit to Rs 643 crore against Rs 476 crore in the year-ago period. The company also deeclared an interim dividend of Rs 15 per equity share. The company's board also approved a plan to raise up to Rs 7,000 crore through non-convertible debentures (NCDs).
Consolidated revenue from operations rose 4.3 per cent y-o-y to Rs 6,778 crore in Q3. Revenue from the transmission and distribution business fell 1.2 per cent, while generation and renewable energy segments grew 22 per cent and 26 per cent, respectively.
Torrent Power is one of the leading brands in the Indian power sector with an all-round experience in generation, transmission and distribution of power.
Torrent Power shares ended nearly 4% lower on Wednesday after the power sector firm reported its Q3 earnings. Torrent Power shares fell 3.77% to Rs 1427.5 today against the previous close of Rs 1483.30. Market cap of the firm slipped to Rs 71,929 crore.
Elara capital has downgraded its stance to 'sell' from 'reduce' on high valuation concerns.
However, it has retained its target price at Rs 1,313. With a planned capex of Rs 20000 crore in FY26 -27 and a majority of renewable assets secured under long-term power purchase agreement (PPA), growth visibility is strong.
"However, current valuation offers limited scope for further upside. So, we revise to Sell from Reduce with SOTP -target price retained at Rs 1,313. We cut our earnings estimate by 5.3% for FY27E but raise it for FY28 E by 13.8%, considering that the projects delayed in FY27 will be commissioned in FY28," said Elara Capital
JM Financial has retained its 'reduce' stance on the stock. It termed Q3 earnings below expectations.
"Recently, the company has undertaken several new growth initiatives such as renewable energy (5 GW under development), pumped hydro storage (8.4 GW pipeline), thermal projects (1.6 GW under development) and transmission (104 km, 400 kV under pipeline); however, the earnings from these are expected to materialise in the long term. We estimate the company to report FY25-28 CAGR of 8%/ 12%/ 3% in Revenue/ EBITDA/ PAT. We maintain REDUCE rating with SOTP based target price of Rs 1,340," said JM Financial.
In Q3, the firm reported a 35 per cent year-on-year (y-o-y) rise in consolidated net profit to Rs 643 crore against Rs 476 crore in the year-ago period. The company also deeclared an interim dividend of Rs 15 per equity share. The company's board also approved a plan to raise up to Rs 7,000 crore through non-convertible debentures (NCDs).
Consolidated revenue from operations rose 4.3 per cent y-o-y to Rs 6,778 crore in Q3. Revenue from the transmission and distribution business fell 1.2 per cent, while generation and renewable energy segments grew 22 per cent and 26 per cent, respectively.
Torrent Power is one of the leading brands in the Indian power sector with an all-round experience in generation, transmission and distribution of power.