Q1 2027 Torrent Power Ltd Earnings Call

August 3, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Torrent Power Ltd. Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode.

Operator 2: Ladies and gentlemen, good day and welcome to the Torrent Power Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Saurabh Mashruwala, Executive Director and CFO. Thank you, over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to the Torrent Power Limited Q1 FY 2027 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Saurabh Mashruwala, Executive Director and CFO. Thank you, over to you, sir.

Speaker #1: And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone.

Speaker #1: Please note that this conference is being recorded. I now hand the conference over to Mr. Saurabh Mashruwala, Executive Director and CFO. Thank you, and over to you, sir.

Speaker #2: Thank you. Good evening to all of you, and thank you for joining the earnings call of Torrent Power for Q1 FY27. I will first speak about the performance of the quarter.

Saurabh Mashruwala: Thank you. Good evening to all of you, thank you for joining the earnings call of Torrent Power for Q1 FY27. I will first take you through the performance of the quarter, thereafter we welcome the question and answer. Let's share the performance of the company at PBT level first, then we'll take you to the tax expenses separately. Reported PBT for the quarter stood at INR 925 crore as compared to INR 985 crore in the corresponding quarter of last year, a reduction of INR 60 crore. PBT for the corresponding quarter of the last year includes a non-recurring loss of INR 59 crore on account of non-cash adjustment due to foreign currency fluctuations.

Speaker #2: Sir, after we welcome the question and answer session, next is the performance of the company at the PPT level first, and then we'll take you through the tax expenses separately.

Speaker #2: Reported PPT for the quarter stood at ₹925 crore, as compared to ₹985 crore in the corresponding quarter of last year, a reduction of ₹60 crore.

Speaker #2: PPT for the corresponding quarter of last year included a non-recurring loss of ₹59 crore on account of non-cash adjustment due to foreign currency fluctuations.

Speaker #2: Adjusted for these, the PAT for the quarter stood at ₹925 crore, as compared to ₹1,044 crore in the comparable quarter of last year, a reduction of ₹119 crore on an adjusted basis.

Saurabh Mashruwala: Adjusted for this one-off, PBT for the quarter stood at INR 925 crore as compared to INR 1,044 crore in the comparable quarter of last year, a reduction of INR 119 crore on adjusted basis. Tax expenses during the quarter has increased by 28% as compared to 25% for the corresponding quarter of the last year. The increase is mainly on account of completion of tax holiday period availed under Section 80IA for some of the units. Business-wise, factors contributing to the performance are as follows. First, contribution from the thermal generation business remains resilient despite elevated gas price arising from ongoing geopolitical tension in Middle East, an increase in O&M expenses. Adjusted for the non-recurring item in the corresponding quarter of the previous year, the business performance was lower by INR 123 crore, primarily on account of three factors.

Speaker #2: Tax expenses during the quarter have increased by 28%, as compared to 25% for the corresponding quarter of last year. The increase is mainly on account of completion of the tax holiday period availed under Section 80-IA for some of the units.

Speaker #2: The factors contributing to the performance are as follows. First, contributions from the thermal generation business remain resilient despite elevated gas prices arising from ongoing geopolitical tensions in the Middle East and an increase in O&M expenses.

Speaker #2: Adjusted for the non-recurring item in the corresponding quarter of the previous year, the business performance was lower by ₹123 crore, primarily on account of three factors.

Speaker #2: First, despite elevated gas prices during the quarter, the company maintained healthy operating margins in its merchant power operations. However, the gains from merchant sales and LNG trading were lower by ₹87 crore.

Saurabh Mashruwala: Despite elevated gas prices during the quarter, the company maintained healthy operating margin in merchant power operations. However, the gains from the merchant sales and LNG trading were lower by INR 87 crore. During the quarter, we have undertaken upgrade exercise to our gas-based plant to improve the plant flexibility and availability, resulting into the increase in O&M expenses by INR 51 crore. Benefit of these are being demonstrated during the quarter whereby we were able to realize better margin from merchant power sales. While some of the upgrades are implemented, others are being progressively rolled out in our gas-based unit, which will help us improve our margin realization going forward. This will also help us manage the evolving operating environment, which has significantly changed recently on back of increased renewable energy penetration, requiring our units to operate more frequently in a cyclical mode and respond to varying demand patterns.

Speaker #2: During the quarter, we have undertaken an upgrade exercise to our gas-based plant to improve the plant's flexibility and availability, resulting in an increase in O&M expenses by ₹51 crore.

Speaker #2: The benefits of this are being demonstrated during the quarter, whereby we were able to realize better margins on merchant power sales. While some of the upgrades are implemented, others are being progressively rolled out in our gas-based unit, which will help us improve our margin realization going forward.

Speaker #2: This will also help us manage the evolving operating environment, which has significantly changed recently on the back of increased renewable energy penetration, requiring our units to operate more frequently in a cyclical mode in response to varying demand patterns.

Speaker #2: This measures are expected to support higher availabilities, improve operating operational reliabilities, and optimization of long-term ONM costs, as well as despite the as well as despite the increasing flexibility operating regimes.

Saurabh Mashruwala: These measures are expected to support higher availability, improve operational reliability, and optimization of long-term O&M cost, as well as support the increasing flexibility operating regime. Company on 25 June 2026 consummated acquisition of Nabha Power Plant, which contributed INR 15 crore in the quarter. Lower contribution from thermal generation was partly offset by increase in gain from distribution and renewable segments. The second reason on the distribution and transmission segment, in total it contributed 71% additional profit driven by three factors. Receipt of favorable order from the regulator approving carrying cost of INR 41 crore. This is a normal course of business due to regulatory assets we have, and we are getting the favorable regulatory orders. Second, improved contribution from the operations by INR 19 crore, supported by two factors.

Speaker #2: On 25th June '26, consumer acquisition of the Napava plant contributed ₹15 crore in the quarter. Lower contribution from thermal generation was partly offset by increased gains from the distribution and renewables segments.

Speaker #2: The second reason in the distribution and transmission segment, in total, contributed 71% of the additional profit, driven by three factors. First, receipt of favorable orders from the regulator approving carrying cost of ₹41 crore.

Speaker #2: This is in the normal course of business due to the regular assets we have, and we are getting favorable regulatory orders. Second, we saw improved contribution from operations by ₹19 crore, supported by two factors.

Speaker #2: First, an increase in ROE and ROC on account of capitalization of assets, and higher rates of return on equity as per the new tariff regulations and other incentives.

Saurabh Mashruwala: Increase in ROE and ROCE on account of capitalization of assets and higher rate of return on equity as per the new tariff regulations and other incentives. Second is improved contribution from the distribution franchisee business on back of improved volumes and increased tariffs. Volume across the franchisee distribution business improved by 4%. Third reason is additionally, new commissioning transmission project has contributed INR 11 crore in incremental profit. Coming to the renewable operations. Renewable operations contributed INR +19 crore contributions due to generation from newly commissioned capacity and improved PLF across the wind and solar, both partially offset by gain in similar quarter of the previous year on account of LPS income on delayed payments. Fourth reason is other factors lowering the profitability, INR 90 crore. There are two main reasons. Increase in the finance cost on back of higher capitalization and rated borrowings.

Speaker #2: The third is improved contribution from the distribution franchisee business on the back of improved volumes and increased tariff. Volume across the franchisee distribution business improved by 4%.

Speaker #2: The third reason is, additionally, new commissioning of transmission projects has contributed ₹11 crore in incremental profit. Now, coming to the renewable operations, renewable operations contributed ₹19 crore in positive contributions.

Speaker #2: Due to generation from newly commissioned capacity and improved PLF across the wind and solar segments, both were partially offset by gains in the similar quarter of the previous year, on account of LPS income from delayed payments.

Speaker #2: The fourth reason is other factors lowering the profitability by ₹90 crore. There are two main reasons: first, an increase in finance cost on the back of higher capitalization and rated borrowings.

Speaker #2: And second, the increase in mission expenses and depreciation was on account of higher capitalization, mainly in the renewable segment. This completes the explanation of the financial performance during the quarter.

Saurabh Mashruwala: Second, increase in miscellaneous expenses and depreciation, which was on account of higher capitalization, mainly within renewable segments. This completes the explanation of the financial performance during the quarter. Now, coming to the update on the various projects under implementation. Renewable energy projects of 70 MW got commissioned during the quarter, taking the aggregate installed generation capacity of the company to 6.6 GW as on 30 June 2026, comprising of 2.7 GW gas-based projects, 1.8 GW coal-based projects, and 2.1 GW renewable capacity. On renewable energy projects as on 30 June 2026, renewable energy projects of 4.6 GW are under implementation, which we expect to commission progressively as under. About 1.2 GW capacity is expected to commission in FY current year, FY27. Between 1.4 to 1.6 GW capacity is expected to commission in the next year, which is FY28, and balance capacity in FY29.

Speaker #2: Now, coming to the update of the various projects and their implementations. The renewable energy project of 70 megawatts got commissioned during the quarter, taking the aggregate installed generation capacity of the company to 6.6 gigawatts as on 30th June 2026, comprising 2.7 gigawatts of gas-based projects, 1.8 gigawatts of coal-based projects, and 2.1 gigawatts of renewable capacities.

Speaker #2: First, on renewable energy projects, as on 30th June 2026, renewable energy projects of 4.6 gigawatts are under implementation, which we expect to commission progressively as under: about 1.2 gigawatt capacity is expected to be commissioned in the current year, FY27; between 1.4 to 1.6 gigawatts capacity is expected to be commissioned in the next year, which is FY28; and the balance capacity in FY29.

Speaker #2: Capex of ₹1,550 crore was incurred during the quarter against ₹1,200 crore capex in Q4 FY26 and ₹355 crore of capex in Q1 of FY26.

Saurabh Mashruwala: Capex of INR 1,550 crores was incurred during the quarter against INR 1,200 crore Capex in Q4 FY26 and INR 355 crores of Capex in Q1 FY26, means comparable quarter of the last year. Of the total Capex of INR 29,600 crores in RE projects under implementation, cumulative Capex of INR 8,800 crores has been incurred up to 30 June 2026. In FY27, total Capex of approximately INR 10,000 crores is expected to be incurred for all RE projects. Moving on to the implementation under the Anuppur Thermal Project of 1.6 GW, the update is as under. First, activity are underway, wherein following major milestones have been achieved. First, power sale agreement executed with MP Power Management Company Limited. Second, letter of award issued to the BTG as well as balance of plant. Third, environmental clearance received for the project.

Speaker #2: This is compared to the quarter of the last year. Of the total capex of ₹29,600 crore in RE projects under implementation, cumulative capex of ₹8,800 crore has been incurred up to 30th June 2026.

Speaker #2: In FY27, total capex of approximately ₹10,000 crore is expected to be incurred for all RE projects. Moving on to the implementation under the Anuppur thermal project.

Speaker #2: The update on the 1.6 gigawatts is as follows. First, activities are underway, wherein the following major milestones have been achieved. First, the power cell agreement was executed with MP Power Management Company Limited.

Speaker #2: Second, letter of award issued to the BTG as well as balance of plant. Third, environment clearance received for the project. Fourth, the project is expected to be commissioned in the next six to seven years.

Saurabh Mashruwala: Fourth, the project is expected to commission in next six to seven years. A total Capex of INR 450 crores has been incurred as of 30 June 2026. Coming to the Pumped Storage Hydro Project of 3 GW in Maharashtra, the update is the activity are underway, wherein following major milestones have been achieved. First, energy storage facility agreement with MSEDCL was executed. Letter of award issued to the civil, hydromechanical, and second, electrical and mechanical packages. Environmental and forest clearance has been received for the project. The project is expected to commission in the next three to four years, and total expense of INR 1,130 crores has been incurred up to 30 June 2026. This is a transmission project. Solapur is under implementation, expected to be commissioned this year. Cumulative Capex of INR 330 crores has been incurred as on 30 June 2026.

Speaker #2: A total capex of ₹450 crores has been incurred as on 30th June 2026. Coming to the Pumped Storage Hydro project of 3 gigawatts in Maharashtra, the update is that activities are underway, wherein the following major milestones have been achieved.

Speaker #2: First, the energy storage facility agreement with MSC was executed. Rate of award was issued to the civil, hydro-mechanical packages, and second, electrical and mechanical packages. Environment and foreign clearance has been received.

Speaker #2: For the project, the project is expected to be commissioned in the next three to four years, and a total expense of ₹1,130 crores has been incurred up to 30th June 2026.

Speaker #2: Of the transmission project, solar power is under implementation and is expected to be commissioned this year. A cumulative capex of ₹330 crore has been incurred as on 30th June 2026.

Speaker #2: Further details on the pipeline project have been summarized in our latest presentation, available on our website. That's all for the quarter. Now, I request the coordinator to open the line for the Q&A session.

Saurabh Mashruwala: Further details of the pipeline project have been summarized in our latest investor presentation available on our website. That's all for the quarter. Now I request coordinator to open line for Q&A session. Wish everybody to stay safe and healthy. Thank you so much. Handing over to the operators.

Speaker #2: I'll ask several people to say, "Stay safe and healthy." Thank you so much. Handing over to the operators.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone.

[Company Representative] (Torrent Power): Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Mohit Kumar with ICICI Securities. Please go ahead.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Mohit Kumar with ICICI Securities. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Mohit Kumar with ICICI Securities.

Speaker #1: Please go ahead.

Speaker #3: Yes, good evening, sir, and thanks for the opportunity. My question is on Nava Power. Can you help us with the revenue adjusted for the bid for Nava Power for Q1, and the gross data on Torrent Power post the acquisition of Nava?

Mohit Kumar: Yes. Good evening, sir, and thanks for the opportunity. My question is on Nabha Power. Can you help us with the revenue-adjusted EBITDA Nabha Power for Q1 and gross debt on the Torrent Power post the acquisition of Nabha?

Saurabh Mashruwala: Q1, we acquired on the 25th of June, there is hardly 5 days of income we have booked, not for the entire quarter. 5 days, I would say, EBITDA was about overall INR 15 plus profit we have booked in our result. Not material amount we have booked because it is a 5-day operation we have consolidated in our books of accounts.

Speaker #2: So the Q1 we required on a 25th of June is that is hardly five five days of income we have booked not for the entire quarter so five days I would say EBITDA was about total I mean very overall 15 plus profit we have booked in the Q in in Everest in our result not material amount we have booked because it's a five days operation we have consolidated in our books of accounts as far as gross debt is concerned so it is around 6,000 crores 6,500 crores of gross debt which is which is added in the books because of the Nava Power project since about 3,000 crores in the Nava Power book and about 3,800 crores in Torrent Power books.

Saurabh Mashruwala: Q1, we acquired on the 25th of June, there is hardly five days of income we have booked, not for the entire quarter. Five days, I would say, EBITDA was about overall INR 15 plus profit we have booked in our result. Not material amount we have booked because it is a five-day operation we have consolidated in our books of accounts.

[Company Representative] (Torrent Power): As far as gross debt is concerned, it is around INR 6,500 crores of gross debt which is added in the books.

Saurabh Mashruwala: Because of the Nabha Power, right? About INR 3,000 crores in the Nabha Power book and about INR 3,800 crores in Torrent Power book.

Speaker #3: Understood. And is it fair to expect that Nava Power will add ₹250 crore EBITDA per quarter going forward?

Mohit Kumar: Understood. Is it fair to expect that Nabha Power will add INR 250 crore EBITDA per quarter going forward?

Speaker #2: So on a on a yeah you are right. So on a steady state basis around 1,000 crores of EBITDA should be should be a good enough number.

[Company Representative] (Torrent Power): Yeah, you are right. On a steady-state basis, around INR 1,000 crore of EBITDA should be a good enough number.

Speaker #2: Yes, exactly.

Saurabh Mashruwala: Yes, exactly.

Mohit Kumar: Understood. My second question is.

Speaker #3: Understood. My second question is not on a reported that I understand sir not on the reported yes at this yes second question sir can you help us with the reason for lower contribution to EBITDA of renewables in this quarter despite 30% increase in generation I'm talking about EBITDA which is which was which was reported in this segmental yeah I see only 20 crore incremental so different you can see this number but if you look at recollect that the last last year similar quarter we have a income about 47 crores of the LPS claim was available which was not available in the current quarter that is why you are seeing the differential number will is lower otherwise on a standalone basis numbers is higher as far as EBITDA is concerned oh definitely are you safe right sir are you safe talking about right are you ou safe yes are you safe I'm talking you know understood sir my last question sir of course I think it's both about the your capital expenditure program for FY27 is 10,000 crores but how much you incurred in the Q1 Q1 we have total incurred so around 1,500 crores incurred in Q1 for renewable projects for the RE projects for the RE project yes we haven't spent anything on the coal nothing on the PFC in the Q1 that's right sir thermal basically coal we have incurred about 125 crores 25 understood understood very helpful sir thank you sir thank you and best of luck sir thank you.

Saurabh Mashruwala: Cash flow basis. Not on a reported basis.

Mohit Kumar: Understood. I understand, sir.

Saurabh Mashruwala: Cash flow this year, not on the reported basis because reported basis is lower.

Mohit Kumar: Yeah, understood.

Saurabh Mashruwala: Yes, adjusted EBITDA, yes.

Mohit Kumar: My second question, sir, can you help us with the reason for lower contribution to EBITDA of renewables in this quarter despite 30% increase in generation? I am talking about EBITDA which was reported in this segmental. I see only INR 20 crore incremental.

Saurabh Mashruwala: You can see this number, but if you recollect that the last year similar quarter, we have income about INR 47 crores of the LPS claim was available, which was not available in the current quarter. That is why you are seeing the differential number will be lower. Otherwise, on a standalone basis, numbers is higher as per EBITDA.

Mohit Kumar: That's on the RE side, right, sir? RE side talking about, right?

Saurabh Mashruwala: RE side. Yes. RE side I'm talking about.

Mohit Kumar: Understood, sir. My last question, sir, of course, I think we spoke about your capital expenditure program for FY2030, INR 10,000 crore. How much you incurred in the Q1?

Saurabh Mashruwala: Q1, we have total incurred, around INR 1,500 crore was incurred in Q1 for renewable projects.

Mohit Kumar: Only RE projects.

Saurabh Mashruwala: For the RE projects.

Mohit Kumar: For the RE projects, yes. We haven't seen anything on the coal, nothing on the PSC in the Q1. That's right, sir?

Saurabh Mashruwala: Thermal, basically coal, we have incurred about INR 125 crores.

Mohit Kumar: INR 125 crore. Understood. Very helpful, sir. Thank you. Thank you, and best of luck.

Operator 2: Thank you. Your next question comes from the line of Satyadeep Jain with Ambit Capital. Please go ahead.

Operator: Thank you. Your next question comes from the line of Satyadeep Jain with Ambit Capital. Please go ahead.

Speaker #1: Your next question comes from the line of Satyadeep Jain with Ambit Capital. Please go ahead.

Satyadeep Jain: Hi. Thank you. First of all, wanted to understand basic your demand across different distribution circles. While Ahmedabad you registered 10% volume growth YOY. Surat, Dadra & Nagar Haveli, all these other licenses and all had very muted growth. Just trying to understand what was happening in these regions when overall at the All India level we had very strong growth in the quarter. The AT&C losses also increased in all these. Almost all circles AT&C losses increased substantially. Both demand and AT&C losses.

Speaker #3: Hi thank you. first of all wanted to understand by your demand across different distribution circle while you registered 10% volume growth YY the all these other licenses and all had very muted growth just trying to understand what was happening in these regions when overall at the all India level we had very strong growth in the quarter and and the ATNC losses also increase in all these almost all circles ATNC losses increase substantially so both demand and ATNC losses so you Ahmedabad is a benchmark

Saurabh Mashruwala: Ahmedabad is a benchmark, I would say 10% is a growth which is comparable with the country's average, I would say. Surat being a industrial town, always growth will be not comparable with the overall demand growth, I would say. Dadra is also a industrial area, basically. It's comparable to the Surat growth. DNS, DDES, there is some lower demand is exceptional case, I would say. It's not a repetitive kind of a nature. In terms of AT&C losses, I would say in Agra particularly, the last year similar quarter, we got some good realizations from our Agra Vigor Limited. Fast realization we got which has reduced our AT&C loss substantially, which is not the case in the current quarter. That is what the difference, I would say, in AT&C losses.

Speaker #2: I would say 10% of growth this is a comparable with the countries average I would say we the industrial town always growth will be not comparable with the overall demand growth I would say the head is also industrial area basically so it's comparable with the surat growth ENS DD yes there is some some lower demand is exceptional case I would say it's not a repetitive in terms of ATNC losses I would say in Agra particularly the last year similar quarter we have we got some good realization some our Agra become become become limited but past realization we got which has which has reduced our ATNC loss substantially which is not the case in the current quarter so that is what the difference I would say in ATNC losses otherwise D1D and SMK is not material different I would say as compared to the last Agra is the main there is a substantial difference in the Agra mainly because of the higher realization we have received in the comparable quarter of last year which is not the case in the current quarter

Saurabh Mashruwala: Otherwise, even in SLDC is not material different, I would say, as compared to the last. Agra is the main. There is a substantial difference in the Agra, mainly because of the higher realization we have received in the comparable quarter of last year. This is not the case in the current quarter.

Speaker #3: Okay, so I’m not sure if I missed it in the opening remarks, but what was the merchant EBITDA and NMT EBITDA in this quarter? What was the differential or reason for lower profit?

Satyadeep Jain: Okay. What was the merchant EBITDA and NNP EBITDA in this quarter?

Saurabh Mashruwala: Sir, differential lower profit is about INR 87 crores. That is what we have said. We sold about 445 MUs in the merchant market in the current quarter.

Speaker #2: is about ₹87 crore, that's what we have said, and we sold about 445 MUs in the merchant market in the current quarter.

Speaker #3: And this was largely in high dam market yes yes yes yes okay just trying to understand how do you look at this market given you have a large untied capacity in many plays are adding battery and given the merchant best installations that we see for this year and in projections do you see a case for any risk how do you evaluate merchant gas potential for you if you look at the demand pattern in the country where the peak demand and the summer demand will will be always be there and now the peak demand figure is also prolonging I would say so during the evening time in the summer time we keep on getting this opportunity in the merchant market for our mutualized capacity entire capacity I would say so being the when the gas price thing become normal we will keep on getting more opportunities are going forward I would say lastly on some there is some delay in one FDRE project it seems and some other projects also slight I know we talking about 1.2 gigawatt in general for this year but are you seeing any delays on the these are all some of these are your own discounts seems like STU are you seeing some delays in STU commissioning and the latest estimate you have for 1.2 gigawatt what kind of visibility do you have for transmission availability as you know as you aware that the this all is project connectivity means transmission line availability basically commission of the transmission line onward transmission line is become a issue and some of the some of them because of the ROW issues which we are trying to work with the transmission utility to ensure see that the they should come their project on time so that our our project progress should also align with them their timeline and Satyadeep what we have said is after factoring in all those issues so our expectation is that we should achieve this target what we have given now if something unfortunate happens we'll we'll update you on a quarterly basis but this is what we feel that it's a reasonable estimate right now looking at the current scenario Okay thank you so much.

Satyadeep Jain: This was largely in high DAM market?

Saurabh Mashruwala: Yes.

Satyadeep Jain: Okay. Just trying to understand, how do you look at this market, given you have a large untied capacity and many players are adding battery, and given the merchant BESS installations that we see for this year and projections. Do you see a case for any risk? How do you evaluate merchant gas potential for you?

Saurabh Mashruwala: If you look at the demand pattern in the country, where the peak demand and the summer demand will always be there, and now the peak demand period is also prolonging, I would say. During the evening time, in the summer time, we keep on getting this opportunity in the merchant market for our unutilized capacity, untied capacity, I would say. When the gas price thing become normal, we will keep on getting more opportunities as going forward, I would say.

Satyadeep Jain: Lastly, there is some delay in one FDRE project, it seems, and some other projects also slight. I know you are talking about 1.2 gigawatt in general for this year. Are you seeing any delays? Some of these are your own DISCOMs, things like STU. Are you seeing some delays in STU commissioning and the latest estimate you have for 1.2 gigawatt? What kind of visibility do you have for transmission availability?

Saurabh Mashruwala: As you aware, that these all these projects, connectivity, transmission line availability, basically. Commissioning the transmission and onward transmission line is bit of an issue, and some of them because of the ROW issues. Which we are trying to work with the transmission utility to ensure, see that if they should come, their project on time so that our project progress should also align with their timeline. Satyadeep, what we have said is after factoring in all those issues. Our expectation is that we should achieve this target what we have given. Now, if something unfortunate happens, we will update you on a quarterly basis. This is what we feel that is a reasonable estimate right now, looking at the current scenario.

Satyadeep Jain: Okay. Thank you so much.

Speaker #1: Thank you. Before we take the next question, a reminder to all participants: you may start. The next question comes from the line of Sumit Kishore with Access Capital.

Operator 2: Thank you. Before we take the next question, a reminder to all the participants, you may press star and then one to ask a question. Your next question comes from the line of Sumit Kishore with Axis Capital. Please go ahead.

Operator: Thank you. Before we take the next question, a reminder to all the participants, you may press star and then one to ask a question. Your next question comes from the line of Sumit Kishore with Axis Capital. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Good evening. My first question is in relation to your 1.2 gigawatt peak commissioning target. What kind of phase-out are you expecting in project commissioning after 70 megawatts in Q1?

Sumit Kishore: Good evening. My first question is, in relation to your 1.2 GW peak commissioning target, what kind of phase out are you expecting of project commissioning after 70 MW in Q1? Is it likely to be more Q3, Q4 heavy, or is there any phase out that we should be mindful of?

Speaker #4: Is it likely to be more Q3/Q4 heavy, or is there any phase-out that we should be mindful of?

Saurabh Mashruwala: We expect about the whole Q1 of our commissioning was 70 MW, but by Q2 we expect about 400 MW we'll get commission and the balance will happen in the H2, I would say. That is what we are progressing.

Speaker #2: So, we expect about—our first quarter of commissioning was 70 megawatts, but by Q2 we expect about 400 megawatts will get commissioned, and the balance will happen in H2. I would say that is right; that is what we are progressing.

Speaker #4: Okay, so H2 will be an 800 megawatt peak, and H1 is 400.

Sumit Kishore: Okay. H2 will be about 800 MW peak and H1 is 400.

Speaker #2: Yes exactly.

Saurabh Mashruwala: Yes, exactly.

Speaker #4: Okay, and we were reading in the media that your Amgen plant is supposed to be shifted to another location, and in view of that, you set up an 800 megawatt replacement power plant.

Sumit Kishore: Okay. We were reading in the media that your AMGEN plant is supposed to be sort of shifted to another location, and in lieu of that, you'll set up a 800 MW replacement power plant. What is your version of what developments have happened so far?

Speaker #4: Is there—what is the official—what is your version of what development has happened so far?

Speaker #2: So Amgen power project is about 362 megawatt capacity and it is it we have a permission to ramp up to December 30 and what has happened that the since after December 30 it's not going to be in operation so we we have requested and it's basically plant available for the Ahmedabad distribution so we requested state government for the cold allocations double the cold allocation of capacity of 362 megawatt so that cold state government has approved the cold allocation but they have to they have requested the central government for the cold allocation once the central government approved the cold allocation for this plant this plant to set up a about close about 800 megawatt unit to replace the Amgen power project.

Saurabh Mashruwala: AMGEN Power project is about 362 MW capacity, and we have a permission to ramp up to 30 December. What has happened is that since after 30 December, it's not going to be in operation. We have expressed, and it's a basically plant available for the Ahmedabad distribution. We requested state government for the coal allocations, double the coal allocation of capacity of 362 MW. That coal, state government has approved the coal allocation, but they have requested the central government for the coal allocation. Once the central government approves the coal allocation for this plant, we plan to set up close to about 800 MW unit, to replace the AMGEN Power project. That is what the planning.

Speaker #2: That is what the planning.

Speaker #4: So, has the land for this plant been remarked or allocated to you?

Sumit Kishore: Has the land for this plant been earmarked or allocated to you?

Speaker #2: No I think it we are working out on where exactly to place the plant so it may not be in Gujarat also so so we are working on that where where this new plant will come in.

Saurabh Mashruwala: No, I think, we are working out on where exactly to place the plant, so it may not be in Gujarat also. We are working on that, where this new plant will come in. Work in progress kind of a thing right now, but coal allocation is being done by the state government. We applied to the central government for allocation. Once the allocation is available, we firm up our plan and implement one unit of 800 MW to replace the AMGEN Power project.

Speaker #4: So, work in progress, kind of nothing right now, but the core allocation has been done by the state government. They acquired from the central government for the allocation.

Speaker #4: Once the allocation is available, then we sum up our plan and implement one that is of 800 megawatt to replace the Amgen Power Project.

Speaker #4: Okay, quarter-on-quarter we have seen some movement in your RE portfolio, mainly around C&I projects. So, what is your general outlook for the year in terms of how your portfolio for RE will build up?

Sumit Kishore: Okay. Quarter-on-quarter, we have seen some movement in your RE portfolio, mainly around C&I projects. What is your general outlook for the year in terms of how your portfolio for RE will build up? Is there any traction that you are seeing in terms of bidding activity, tendering activity for RE projects, your thoughts here will help.

Speaker #4: Is there any traction that you're seeing in terms of bidding activity or tendering activity for RE projects? Your thoughts here will help.

Speaker #2: So we are participating in almost all the projects, but as you know, our philosophy restricts our bidding at some point, so that we can at least achieve a 16% IRR. That is the philosophy we will continue to follow going forward. For us, our benchmark is the IRR, not just acquiring more and more capacity. So that is the philosophy we are following, and we will continue to follow this philosophy going forward.

Saurabh Mashruwala: We are participating in almost all the projects, but as you know our philosophy, we restrict our bidding at some point of time so that we can actually maximize in IRR. That is what the philosophy we continue to adopt going forward also. Our benchmark will be the IRR not to acquire the more and more capacity. That is our philosophy we are following, and we continue to follow that philosophy going forward also.

Speaker #4: Okay thank you.

Sumit Kishore: Okay. Thank you.

Speaker #2: Yeah.

Saurabh Mashruwala: Yeah.

Speaker #1: Thank you. Participants, you may press star and then one to ask a question now. A reminder to all participants: please press star, then one to ask a question.

Operator 2: Thank you. Participants, you may press star and then one to ask a question now. A reminder to all the participants, you may press star and then one to ask a question. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Operator: Thank you. Participants, you may press star and then one to ask a question now. A reminder to all the participants, you may press star and then one to ask a question. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Speaker #1: As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Speaker #2: Thank you very much, everybody, for joining the Torrent Power earnings call. Thank you very much.

Saurabh Mashruwala: Thank you very much everybody who joined the Torrent Power earning call. Thank you very much.

Speaker #1: Sorry to interrupt. Sorry to management. We have last-minute registrations coming in. Thank you. Our next question comes from Apurva Bahadur from IIFL. Please go ahead.

Operator 2: Sorry to interrupt. Sorry to interrupt management. We have last minute registrations coming.

Operator: Sorry to interrupt. Sorry to interrupt management. We have last minute registrations coming.

Saurabh Mashruwala: Okay. Thank you.

Operator 2: Our next question comes from Apoorva Bahadur from IIFL. Please go ahead.

Operator: Our next question comes from Apoorva Bahadur from IIFL. Please go ahead.

Speaker #5: Hi, sir. Thank you for the opportunity. Sir, I want to know your thoughts on a couple of things. First of all, on this increased competition from batteries.

Apoorva Bahadur: Hi, sir. Thank you for the opportunity. Sir, I want to know your thoughts on a couple of things. First of all, on this increased competition from batteries. I think you touched upon this a little bit earlier as well. Where do you see the marginal cost of gas power settlement sort of heading towards given the price at which probably battery can supply electricity? Also secondly, I would also like to know your thoughts if we have any plans of entering the C&I space.

Speaker #5: I think you touched upon this a little bit earlier as well, but where do you see the marginal cost of gas power settlement sort of heading towards, given the price at which probably batteries can supply electricity? Also, secondly, I would like to know your thoughts—do we have any plans of entering the C&I space?

Speaker #2: No so I think Apurva there are two two questions here. So if you are asking the levelized cost of energy battery versus gas power plants right so now with these elevated gas prices the cost of variable cost would be higher for our LNG merchant power plants.

Saurabh Mashruwala: I think, Apurva, there are two questions here. If you are asking the levelized cost of energy battery versus gas power plants, right? Now, with these elevated gas prices, the cost of variable cost would be higher for our LNG merchant power plants. If you look at a slightly in a short-term or a long-term horizon, we expect that gas prices should settle somewhere in the range of $5 to $8, $6 to $8, per MMBTU. Now, if that is the scenario, your variable cost could be around INR 4, INR 4.5, which is very competitive, even compared to battery also, because I think INR 2, INR 2.5 of solar cost plus if you add INR 3 of battery cost, that will be INR 5, INR 5.5 of battery storage solution cost.

Speaker #2: But if you look at a slightly you know short term or a long term horizon we expect that gas prices should settle somewhere in the range of five to eight dollars six to eight dollars per MMBTU.

Speaker #2: Now if that is the scenario your variable cost could be around four rupees four and a half rupees which is very competitive even compared to battery also because I think two two and a half rupee of solar cost plus if you add three rupees of battery cost that would be five five and a half rupees of battery storage solution cost.

Speaker #2: So, I think we are confident enough that our gas-based power plant, particularly in merchant markets, would be highly competitive. That is the first question, if I am not wrong, right?

Saurabh Mashruwala: I think we are confident enough that our gas-based power plants, particularly in merchant markets, would be highly competitive. That is the first question, if I'm not wrong, right? I think on the second part, if you can just reiterate What was the second question?

Speaker #2: I think on the second part, if you can just reiterate what was the second question.

Speaker #5: Right. So, second question is on your views regarding the C&I market, the corporate market. Even for your open gas project, is there any plan to maybe tie it up with a data center to supply products or power, or any of those thoughts?

Apoorva Bahadur: Right. Second question is on your views regarding the C&I market, the corporate market. Even for your open gas project, is there any plan to maybe tie it up with the data center to supply sort of firm power or any of those thoughts?

Speaker #2: So, Apurva, I think as far as gas-based power plants are concerned with the C&I segment, I think the C&I segment would want renewable power—be it on RTC or anything else—they would want renewable power.

Saurabh Mashruwala: Apurv, I think, as far as gas-based power plants are concerned, with C&I segment, I think C&I segment would want renewable power. Be it on RTC or anything, they would want the renewable power. Gas may not fit into that category. As far as data centers are concerned, we are looking at those opportunities. As of now, there is nothing concrete to tell you on data centers where we can tie up our gas-based power plants. Again, data centers also are looking at more of renewable energy. Scope of that is slightly lower. Also on a economic side or commercial side, if you look at it, I cannot hedge my gas prices on a long-term basis. If say I do a PPA for a long tenor with a fixed price, there is an inherent risk which I'm taking by locking in my tariffs.

Speaker #2: So gas may not fit in to that category. On as far as data centers are concerned so we are looking at those opportunities. As of now there is nothing concrete as to to tell you on on data centers where we can tie up our gas-based power plants.

Speaker #2: But again data centers also are looking at more of renewable energy. so scope of that is slightly lower and also on a economic side or commercial side if you look at it I cannot hedge my gas-based prices gas prices on a long term basis.

Speaker #2: So if they do a PPA for a long tenor with a fixed price, there is an inherent risk which I am taking by locking in my tariff.

Speaker #2: So I think as of now, in the short to medium term, we don't see tying up gas-based power plants on a merchant—sorry, on a C&I or on a data center basis.

Saurabh Mashruwala: I think as of now, in a short to medium term, we don't see tying up gas-based power plants on a merchant or sorry, on C&I or on a data center basis.

Speaker #5: Sure, sir. Understood. Thanks a lot.

Apoorva Bahadur: Sure, sir. Understood. Thanks a lot.

Speaker #1: Thank you. The next question comes from the line of Sri Om Kapoor with Jefferies. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Shirom Kapur with Jefferies. Please go ahead.

Operator: Thank you. The next question comes from the line of Shirom Kapur with Jefferies. Please go ahead.

Speaker #6: Hi sir, thanks for the opportunity. Just firstly, on your renewable segment, where the previous participant also asked about the lower EBITDA year-on-year.

Shirom Kapur: Hi, sir. Thanks for the opportunity. Firstly, on your renewable segment, where a previous participant also asked about the lower EBITDA year-on-year. You mentioned that we had some favorable claims from last year that is not available this year. Could you maybe quantify how much that was for the full year and is that going to be absent for this entirety of FY27? As in, is this a fair run sort of quarterly margin rate to assume for the balance of the year? Are we going to see it reduce each quarter?

Speaker #6: you mentioned that we had some favorable claims from last year that is not available this year. Are we is that could you maybe quantify how much that was for the full year and is that going to be absent for this entirety of FY27 as in is this a fair fair run sort of quarterly margin rate to assume for the balance of the year?

Speaker #6: Are we going to see it reduce each quarter?

Speaker #2: So Sri Om, I think we will not be able to give you guidance for the full year. But if I tell you on an absolute basis, this year the profit was higher, or EBITDA was higher by around ₹66 crore.

Saurabh Mashruwala: Shriom, I think we will not be able to give you guidance for the full year. If I tell you on the absolute basis this year, the profit was higher, or EBITDA was higher by around 66 crores, which compared to previous year, there was a LPS income which was booked previous year, which is 46 crores. If you remove 46 crores, then the EBITDA is higher by 66 crores.

Speaker #2: Compared to the previous year, there was an LPS income that was booked in the previous year, which was ₹46 crores. So if you remove the ₹46 crores, then the EBITDA is higher by ₹66 crores.

Speaker #6: Right. So, in the entirety of FY26, could you quantify how much was that LPS again, which you know might be absent?

Shirom Kapur: Right. In the entirety of FY26, could you quantify how much was that LPS again?

Speaker #2: For the full year. For the full year this was the this was the number. So in Q1 the LPS was forty-six crores and the for the full year also was the same number.

Saurabh Mashruwala: For full year.

Shirom Kapur: For the full year.

Saurabh Mashruwala: For the full year, this was the number. In Q1, the LPS was INR 46 crore and for the full year also was the same number.

Shirom Kapur: Understood. Got it. Just secondly, on the capacity pipeline that you shared in your presentation. For quite a few of the projects, it seems that you have maybe delayed your expectation of when the plants are going to come up. For example, SECI XII, SECI XVI wind, they've been slightly extended into FY28 as well. Similarly for some of your hybrid projects. Could you explain what is driving this delay in capacity addition plans? Is it maybe transmission infra? Is it any other delays, if you could explain that?

Speaker #6: understood. Got it. Got it. And just secondly on your the the capacity pipeline that you shared in your presentation for quite a few of the projects it seems that you have you know maybe delayed you know your expectation of when the plants are going to come up you know for example you know SECI to SECI 12 SECI 16 wind they've been slightly extended into FY20 eight as well similarly for your high some of your hybrid projects.

Speaker #6: Could you explain, you know, what is driving this delay in capacity addition plans? Is it maybe transmission infra? Is it some, you know, any other delays, if you could explain that?

Speaker #2: So, it is mainly because of transmission availability, because we plan our execution based on the upcoming transmission line. So, it coincides with the transmission line.

Saurabh Mashruwala: It is mainly because of transmission availability, because of the we plan our execution based on the onwards transmission line. It coincides with the transmission line and transmission line basically, large things like PGCIL and other things are developing. We plan our execution in a way that there will not be any CapEx coming not ahead of the transmission line availability.

Speaker #2: And transmission line, basically the last like PTCIs and other places are developing. So we plan our execution in a way so that there will not be any CAPEX which will be ahead of the CAPEX spending, not ahead of the transmission line availabilities.

Speaker #6: Understood sir. And just if you could share couple of bookkeeping details here one is I I know you said Nabha Power plant was only operational for six days but if you could give sort of an indicative PLS for those six days how much that was and just secondly on you know your expenses basically we're seeing your employee costs have actually come down year on year.

Shirom Kapur: Understood, sir. Just if you could share a couple of bookkeeping details here. One is, I know you said Nabha Power Plant was only operational for 6 days, but if you could give sort of an indicative PLF for those 6 days, how much that was? Just secondly, on your expenses, basically, we're seeing your employee costs have actually come down year on year. Is there any reason for that? Are we expected to see employee costs further reduce year on year in the subsequent quarters?

Speaker #6: So, is there any reason for that, and are we expected to see employee costs further reduce year on year or in the subsequent quarters?

Speaker #2: Not see Nabha about year, first question about Nabha Power, PLS not quarterly, about we are achieve about 85% PLS. So, that is what generally the PLS—they were Nabha Power project.

Saurabh Mashruwala: See, about your first question about Nabha Power PLF, quarterly we are about 85% PLF. That is what generally the PLF Nabha Power was at. Regarding the reduction of salary costs, is maybe a one-off item. Maybe because of the capitalization, we have capitalized more salary costs. There is no other specific reason that it is continuing to coming down.

Speaker #2: Regarding the reduction in generic costs, it is maybe a one-off item, maybe because of the capitalization. We have capitalized more salary costs; there is no other specific reason. That is why the growth is coming down.

Speaker #6: Right, sir. Got it. Thank you so much. Oh, that's it? Thanks.

Shirom Kapur: Right, sir. Got it. Thank you so much. That's it. Thanks.

Speaker #1: Thank you. The next question comes from the line of Atul Tiwari with JP Morgan. Please go ahead.

Operator 2: Thank you. Next question comes from the line of Atul Tiwari with JP Morgan. Please go ahead.

Operator: Thank you. Next question comes from the line of Atul Tiwari with JP Morgan. Please go ahead.

Speaker #5: Yes, sir. Thanks a lot. Sir, on the LNG availability and pricing, what kind of availability are you seeing? I believe you had indicated that you had contracted a few cargoes in the last call.

Atul Tiwari: Yes. Thanks a lot. Sir, on the LNG availability and pricing, what is the kind of availability you are seeing? I believe you had indicated that you had contracted a few cargoes in the last call. Are they coming through and what is the landed price currently?

Speaker #5: So, are they coming through, and what is the landed price currently?

Saurabh Mashruwala: Three cargoes which was contracted over the summer meeting, summer demand was already acquired and getting used also. As for the balance year, we bank on the Basically, spot cargoes. We are linking the spot cargoes. As and when the opportunity is available, we import the cargo on a spot basis. The next round was, yes, we have a contract of 10 cargoes available. Which will be at a link with the Brent. They're not at the spot price, because spot price is higher at about $20 kind of a thing. It is not affordable. We plan our purchase in a way that it is affordable to the consumer, and we can able to get better margin basically. It's affordable in the merchant market also, so that we can have a reasonable margin available in the merchant market also.

Speaker #2: So, three cargoes which were contracted over the summer, meeting summer demand, were already acquired and are being used also. So, as for the balance PDR, we bank on the spot cargo. So we are banking on the spot cargo, so as and when the opportunity is available, we import the cargo on a spot basis.

Speaker #2: But the next run was yes we have a contract of ten cargoes available. So which will be at a at a link with the brand trade not at a spot price but spot price is higher at at about twenty dollars kind of a thing.

Speaker #2: So, it is not affordable. So we plan our purchase in a way that it is affordable to the consumer, and we are able to get a better margin, basically.

Speaker #2: It's affordable in the merchant market also, so that we can have a reasonable margin available in the merchant market as well. So, this year only, it's the merchant market we are looking at.

Saurabh Mashruwala: This year, only the merchant market we are looking at. Whatever summer demand was there, we have completed. We have honored our summer demand by these imported three cargoes.

Speaker #2: So at the whatever summer demand was there we have we have we have we have completed we have on our summer demand by this important three cargoes.

Speaker #2: And as well, as far as availability is concerned, there is no issue of availability. It is a question of at what price those cargoes are available.

[Company Representative] (Torrent Power): As far as availability is concerned, there is no issue of availability. It is a question of what price those cargoes are available. If required, we can import as many cargoes as you want, but the issue is of the price. We keep on looking at what is the demand and what is the price which can be absorbed under our PPAs and under the merchant market.

Speaker #2: So, if required, we can import as many cargoes as we want, but the issue is the price. So, we keep on looking at what the demand is and what is the price that can be absorbed.

Speaker #2: under our PPAs and under the merchant market.

Speaker #5: Okay, sir. And sir, what was the CAPEX in the first quarter? I missed that number—I think you said it.

Atul Tiwari: Okay, sir. Sir, what was the CapEx in Q1? I missed that number. I think you said it.

Speaker #2: So about total CAPEX is about two thousand two no two thousand three hundred crores. All put together. Out of which renewable is one one thousand five hundred fifty crores.

Saurabh Mashruwala: Our total CapEx is about INR 2,300 crores all put together.

Atul Tiwari: Okay.

Saurabh Mashruwala: Out of which renewable is INR 1,550 crores, thermal CapEx is INR 125 crores, transmission is about INR 120 crores, and light distribution is about INR 500 crores.

Speaker #2: And thermal CAPEX is one hundred and twenty-five crores and transmission is one hundred and twenty crores. And lights distribution is about five hundred crores.

Speaker #5: Okay sir. Thanks. Thanks sir.

Atul Tiwari: Okay. Thanks, sir.

Speaker #1: Thank you. The next question comes from the line of Harsh Singh with Sameeksha Capital. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Harsh Singh with Sameeksha Capital. Please go ahead.

Operator: Thank you. The next question comes from the line of Harsh Singh with Sameeksha Capital. Please go ahead.

Harsh Singh: Right. Thank you for taking my question. Just one thing, sir. With respect to the franchise distribution business, is there anything in the pipeline in terms of new franchise-

Speaker #3: All right, thank you for taking my question. So just one thing, sir: Which part of FY is the transaction distribution business? Is there anything you see in the pipeline in terms of new transactions?

Saurabh Mashruwala: Your voice is not audible.

Speaker #2: Why is it not audible? Your voice is not audible.

Harsh Singh: Am I audible now?

Speaker #3: am I audible now?

Speaker #2: Yeah, you can go ahead.

Saurabh Mashruwala: Yeah, you can go ahead.

Operator 2: It is still the same. I can request you to use the handset, please.

Operator: It is still the same. I can request you to use the handset, please.

Speaker #1: It is still the same. May I request you to use the handset, please?

Saurabh Mashruwala: Yes, exactly. It's all echo is coming.

Speaker #2: Yes, exactly. It's all right. Echo is coming.

Speaker #3: One second. Am I audible now?

Harsh Singh: Am I audible now?

Speaker #2: Yes.

Saurabh Mashruwala: Yes.

Speaker #1: Yes, sir. This is much better.

Operator 2: Yes, sir. This is much better.

Operator: Yes, sir. This is much better.

Speaker #3: Understood. So, thank you for taking my question. Just one thing—on the transaction distribution side, is there anything in the pipeline in terms of any new transactions, such as UPI to the partner?

Harsh Singh: Understood. Thank you for taking my question. Just one thing. On the franchisee distribution side, is there anything in the pipeline in terms of any new franchisees that in UP that you passed? Is there anything that you could provide there in terms of items?

Speaker #3: Anything that is applied there in terms of writing?

Speaker #2: I think UP will come for selection only. So they have tried to—they have attempted to do it before the election, but I think, considering the agitation and all those things, I think it is expected to come post-election, UP election.

Saurabh Mashruwala: I think UP will come post-election only. They have attempted to do it before election, but I think considering the agitations and all those things, I think it is going to come post-UP election. As you know, these are state subjects. I think it's there, but we expect something will come possibly in the state of Maharashtra. Otherwise, there is no concrete things I would say in the franchisee side right now.

Speaker #2: Other, as you know, there is a state subject thing there, but we expect that if something comes, possibly it will come due to the mistake of Maharashtra.

Speaker #2: Otherwise, there is no concrete thing I would say on the franchisee side right now.

Harsh Singh: Understood. Thank you, sir. No other question. Okay.

Speaker #3: Understood. Thank you, sir. No other questions from us, sir.

Speaker #1: Thank you. The next question comes from the line of Vishal with PL Capital. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Vishal with PL Capital. Please go ahead.

Operator: Thank you. The next question comes from the line of Vishal with PL Capital. Please go ahead.

Speaker #5: Yes, sir. Thanks for the opportunity. I think this could be linked with the previous—I mean one of the questions a participant asked. So, the DGN plan that is on imported LNG, and in this quarter we also reported a PLS.

[Analyst] (PL Capital): Yes, sir. Thanks for the opportunity. I think this could be linked with the previous, one of the question a participant asked. Dahej plant that is on imported LNG, and in this quarter we also reported a PLF, though it's a lower PLF, but we are able to generate and sell power. At a $20 MMBtu, are there still buyers, takers, that's why there's a PLF? Or cargo we are getting at a lower rate, and that's why we're able to sell. Just to get a perspective on that.

Vishal Periwal: Yes, sir. Thanks for the opportunity. I think this could be linked with the previous, one of the question a participant asked. Dahej plant that is on imported LNG, and in this quarter we also reported a PLF, though it's a lower PLF, but we are able to generate and sell power. At a $20 MMBtu, are there still buyers, takers, that's why there's a PLF? Or cargo we are getting at a lower rate, and that's why we're able to sell. Just to get a perspective on that.

Speaker #5: Though it's a lower PLS but we are able to generate and sell power. So so I mean like you know at a twenty dollar MMBTU are they still buyers takers?

Speaker #5: That's why there's a PLS, or a cargo, as we are getting at a lower rate, and that's why we are able to sell. So just to take a perspective on that.

Saurabh Mashruwala: If you look at $20, your variable cost will be about INR 13 kind of a thing. Though it's very difficult, I would say, but since we have our old cargoes available, we are able to buy at a competitive rate in bits and pockets, I would say, which will help us in targeting the merchant market, peak demand periods kind of a thing. Basically, summer demand and peak demand kind of market. We are able to sell at a much higher rate and earn our contribution on those market rates. $20 is quite challenging, I would say, at this rate.

Speaker #2: So, if you look at twenty dollars, our variable cost will be about thirteen rupees, kind of a thing. So, though, it's very difficult, I would say.

Speaker #2: But since we have our old cargoes available, we are able to buy at a competitive rate, in bits and pockets, I would say.

Speaker #2: Which will help us in selling and targeting the merchant market—peak demand, PDR kind of a thing. Basically, summer demand and peak demand are the kind of target markets.

Speaker #2: We are able to sell at a much higher rate and earn earn our contribution in the on those market right. So twenty dollars is quite challenging I would say at this at this rate.

Speaker #3: So I think Vishal just to add at twenty dollars you can you can sell with a high dem market not not in the regular market which is a capped at ten rupees.

[Company Representative] (Torrent Power): Sir, I think, Vishal, just to add.

[Analyst] (PL Capital): Yeah.

Vishal Periwal: Yeah.

[Company Representative] (Torrent Power): At $20, you can sell in a high DAM market, not in the regular market, which is capped at INR 10. We have been selling in the high DAM market, and we have been getting better realization. This is doable because we have made a lot of flexible realization in our plants, where in frequent start and stops can be done, and can be run on a cyclical basis. Our variable cost would be higher, but at $20, we are able to serve the high DAM market, but they will not give you an opportunity to work at a very high PLFs. This is about two, three hours of every day, two, three hours you can get that pricing.

Speaker #3: So, we have been selling in the high DEM market, and we have been getting better realizations. This is doable because we have made a lot of flexibilization in our plans.

Speaker #3: Wherein frequent starts and stops can be done, and it can be run on a cyclical basis. So, the variable cost would be higher, but at twenty dollars, we are able to serve the high-demand market. But they will not give you an opportunity to work at a very high PLS.

Speaker #3: But this is about two to three hours of every day. For two to three hours, you can get that pricing.

Speaker #2: And certain slots also. But not on a continuous two three hours basis. It's a very challenging twenty dollars to sell at a sell power at twenty at a twenty dollars MMBTU is a quite challenging I would say.

Saurabh Mashruwala: In certain slots also, but not on a continuous two, three hours basis. It's very challenging, $20 to sell power at a $20 MMBTU is quite challenging, I would say.

Speaker #5: Okay, okay. And then the cargoes that you have mentioned—at what rate are we able to get it? Or have we exhausted or probably, I mean, sold it there? And then we can have sales, maybe like, you know, mid-teens sort of P&L in Q2 and Q3, and, I mean, going forward also.

[Analyst] (PL Capital): Okay. The cargoes that you have mentioned, at what rate we are able to get it? Are we exhausted or probably, still it's there, and then we can have still maybe mid-teens sort of PLF in Q2 and going forward also?

Vishal Periwal: Okay. The cargoes that you have mentioned, at what rate we are able to get it? Are we exhausted or probably, still it's there, and then we can have still maybe mid-teens sort of PLF in Q2 and going forward also?

Saurabh Mashruwala: Cargoes was mainly for our distribution business, for meeting the summer demand. Though any opportunity is available, we keep on buying in a small lot, not in a big cargo, full cargo kind of a quantity.

Speaker #2: So cargoes were mainly for our distribution business, for meeting the summer demand. But, if any opportunities are available, we keep on buying in small lots, not in a full cargo or big cargo kind of quantities.

Speaker #5: Okay, okay, okay. Sure, sir. I think that's all from my side. Thank you.

[Analyst] (PL Capital): Okay. Sure, sir. I think that's all from my side. Thank you.

Vishal Periwal: Okay. Sure, sir. I think that's all from my side. Thank you.

Speaker #1: Thank you. A reminder to all participants: you may press star, then one, to ask a question. As there are no further questions from the participants, I will now hand the conference over to the management for closing comments.

Operator 2: Thank you. A reminder to all the participants, you may press star one to ask a question. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Operator: Thank you. A reminder to all the participants, you may press star one to ask a question. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Speaker #2: Thank you, everybody, for joining the Torrent Power earnings call. Stay safe and healthy. Thank you so much.

Saurabh Mashruwala: Thank you, everybody, for joining Torrent Power earnings call. Stay safe and healthy. Thank you so much.

Speaker #1: Thank you. On behalf of Torrent Power Limited, that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines.

Operator 2: Thank you. On behalf of Torrent Power Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you. On behalf of Torrent Power Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines. Thank you.

Speaker #1: Thank you.

Saurabh Mashruwala: Thank you.

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Q1 2027 Torrent Power Ltd Earnings Call

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