Torrent Power Q4 FY26 net profit drops 70% to ₹318 crore; ₹5 final dividend declared
Synopsis
Torrent Power's Q4 FY26 profit plunged 70% to ₹318 crore, but the headline number is misleading — strip out a ₹637 crore one-time tax reversal that boosted FY25's base, and the underlying business actually improved. Revenue held firm, renewables and distribution gained ground, and the company still paid out ₹20 per share in dividends for the full year.
Key Takeaways
Torrent Power reported a 70% drop in Q4 FY26 net profit to ₹318 crore , down from ₹1,059.57 crore in Q4 FY25.
Revenue from operations was nearly flat at ₹6,406.07 crore versus ₹6,456.34 crore a year earlier.
A ₹637 crore one-time deferred tax reversal in FY25 significantly inflated the base-year comparison.
Full-year FY26 consolidated revenue fell 0.6% to ₹28,966 crore ; net profit dropped 19% to ₹2,416 crore .
Total dividend for FY26 stands at ₹20 per share , including a ₹5 final dividend and ₹15 interim dividend .
Board re-appointed Radhika Haribhakti and Ketan Dalal as independent directors for second five-year terms, subject to shareholder approval.
Torrent Power on Tuesday reported a sharp 70 per cent decline in consolidated net profit for the fourth quarter of FY26, with earnings falling to ₹318 crore from ₹1,059.57 crore in the same quarter of the previous financial year (Q4 FY25). The company had posted a net profit of ₹643.08 crore in the preceding quarter (Q3 FY26), according to its stock exchange filing.
Revenue Holds Steady Despite Profit Slump
Despite the steep profit decline, Torrent Power's revenue from operations remained broadly stable during the January–March 2026 quarter at ₹6,406.07 crore, compared with ₹6,456.34 crore in the corresponding period of the previous financial year — a marginal dip of less than 1 per cent.
What Dragged Profitability
In its regulatory filing, the company attributed the profit pressure primarily to its gas-based generation business, which continued to face headwinds from a dynamic power demand environment and volatility in gas markets. Notably, the year-on-year comparison is also distorted by a one-time non-cash deferred tax liability reversal of ₹637 crore recorded in FY25, which had inflated the base-period profit. Excluding that one-time impact, the company said total comprehensive income for FY26 actually rose by ₹92 crore, driven by improved operational performance in the distribution and renewable energy businesses.
Dividend Announcement
Torrent Power declared a final dividend of ₹5 per equity share for FY26. Combined with an interim dividend of ₹15 per equity share announced earlier in the year, the total dividend for FY26 stands at ₹20 per equity share.
Board Appointments
The company's board approved the re-appointment of Radhika Haribhakti as a non-executive independent director for a second and final term of five consecutive years from 7 August 2026 to 6 August 2031, subject to shareholders' approval. The board also cleared the re-appointment of Ketan Dalal as a non-executive independent director for a second and final term of five consecutive years from 11 May 2027 to 10 May 2032, subject to shareholders' approval.
Full-Year FY26 Performance
For the full year FY26, consolidated revenue declined 0.6 per cent to ₹28,966 crore, while net profit dropped 19 per cent to ₹2,416 crore. The company maintained that the underlying business trajectory — particularly in distribution and renewables — remained positive once the base-year accounting adjustment is stripped out. With gas market volatility an ongoing concern, the performance of Torrent Power's thermal generation segment will remain a key variable to watch in the quarters ahead.
Point of View
But context is everything here. A ₹637 crore non-cash deferred tax reversal in FY25 set an artificially high base — without it, FY26 comprehensive income actually grew. The more meaningful signal is that gas-based generation remains structurally exposed to fuel price volatility, a risk that has persisted across multiple quarters. Torrent Power's renewables and distribution arms are clearly the stable core of the business, and the company's ability to sustain a ₹20-per-share dividend despite the headline profit decline suggests management confidence in cash flows. The real question is how quickly the company can reduce its earnings dependence on gas generation as India's power mix continues to shift.
NationPress
28 Jun 2026
Frequently Asked Questions
Why did Torrent Power's Q4 FY26 net profit fall 70%?
Torrent Power's Q4 FY26 net profit fell 70% to ₹318 crore primarily due to pressure on its gas-based generation business from volatile gas markets and a dynamic power demand environment. The comparison is also affected by a high base from Q4 FY25, which included a one-time non-cash deferred tax liability reversal of ₹637 crore.
What is the total dividend declared by Torrent Power for FY26?
Torrent Power declared a total dividend of ₹20 per equity share for FY26. This includes a final dividend of ₹5 per share announced with the Q4 results, along with an interim dividend of ₹15 per share declared earlier in the financial year.
How did Torrent Power perform for the full year FY26?
For the full year FY26, Torrent Power's consolidated revenue declined 0.6% to ₹28,966 crore, while net profit dropped 19% to ₹2,416 crore. Excluding the one-time tax reversal from FY25, total comprehensive income for FY26 actually rose by ₹92 crore.
Who has been re-appointed to Torrent Power's board?
The board approved the re-appointment of Radhika Haribhakti as a non-executive independent director from 7 August 2026 to 6 August 2031, and Ketan Dalal from 11 May 2027 to 10 May 2032. Both appointments are for a second and final five-year term, subject to shareholders' approval.
Which business segments supported Torrent Power's performance in FY26?
Torrent Power's distribution and renewable energy businesses delivered improved operational performance in FY26, partially offsetting the drag from the gas-based generation segment. These two segments are increasingly the stable earnings drivers for the company.
