Torrent Power Reports Mixed Q1; Profit Declines Year-on-Year
The utility giant posted a 10.8% drop in net profit compared to last year, even as revenue grew modestly and surged sequentially.
Torrent Power's Q1 FY27 results show a year-on-year profit decline of 10.8%, while revenue grew 2.8%. Net profit margin contracted, highlighting a squeeze on profitability.
Torrent Power's first-quarter earnings for FY27 present a mixed picture, with revenue growth overshadowed by a significant year-on-year decline in profitability. While the top line showed modest expansion, net profit fell, reflecting pressure on the company's margins.
The quarterly numbers reveal a clear divergence. Revenue for Q1 FY27 came in at ₹8,124 crore, a 2.8% increase from the same quarter last year. However, net profit dropped 10.8% to ₹662 crore. This resulted in a net profit margin of 8.1%, down 130 basis points from the 9.4% margin in Q1 FY26. The sequential picture is far brighter, with both revenue and profit rebounding strongly from a weak Q4.
A look at the last five quarters shows the volatility in performance, with profitability dipping notably in the most recent two quarters.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 8,124.15YoY +2.8% | 6,406.07 | 7,906.37 |
| Profit (₹ Cr) | 661.85YoY -11% | 331.49 | 741.58 |
| Net Profit Margin | 8.1%YoY -14% | 5.2% | 9.4% |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 8.2%, slightly above the latest quarter's figure.
- The stock has delivered strong long-term returns, with a 103.7% gain over the past three years.
- The company maintains a moderate financial profile, with a return on equity of 13.5% and a debt-to-equity ratio of 0.72.
Despite the recent profit pressure, the company's valuation commands a premium, trading at a P/E of 27.2 compared to the industry average of 22.5. The focus now shifts to whether the robust sequential recovery in Q1 can be sustained to rebuild year-on-year profitability in the coming quarters.
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· TORNTPOWER
(BSE)
ISIN: INE813H01021
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