Power Generation to Acquire Nabha Power Ltd, Expanding Thermal Generation Footprint

Torrent Power Limited has entered into a definitive agreement to acquire a 100 per cent stake in Nabha Power Limited (NPL) from L&T Power Development Limited for an enterprise value of Rs 6,889 crore. NPL operates a high-performing 1,400 MW supercritical coal-fired thermal power plant in Rajpura, Punjab, which is fully contracted under a 25-year Power Purchase Agreement. This strategic move, subject to regulatory approvals, follows a strong fiscal year 2025 for NPL, during which it reported revenues of Rs 4,866 crore and an adjusted EBITDA of Rs 1,153 crore.

The Rajpura plant is recognised for its technical excellence and operational efficiency, utilising advanced Japanese technology to maintain availability levels consistently above 90 per cent. In FY25, the facility achieved a record Plant Availability Factor of 95.36 per cent, ranking it among the top thermal plants in India. Its infrastructure is designed for fuel flexibility, blending domestic coal from long-term supply agreements with SECL and NCL with imported coal as needed. Furthermore, the site’s strategic location in a power-deficient region and its existing framework offer significant potential for ancillary revenue and seamless capacity expansion.

For Torrent Power, this acquisition scales its operational capacity from approximately 5 GW to 6.4 GW, significantly enhancing its footprint in the thermal generation sector. Beyond the physical assets, Torrent will integrate NPL’s decade-long technical expertise and institutional capabilities into its own portfolio. This integration is expected to create substantial synergies, bolstering Torrent’s broader greenfield thermal power development strategy and supporting long-term growth through established operational excellence.

About the Company

As a Rs 29,165 crore integrated utility within the larger Rs 45,000 crore Torrent Group, Torrent Power stands as a cornerstone of India’s energy sector with a robust presence across generation, transmission and distribution. The company currently manages an installed generation capacity of 5,039 MWp—anchored by gas, renewables and coal—and is aggressively expanding its footprint with nearly 10.64 GWp of generation and 3 GW of pumped storage projects under development to drive the nation's energy transition. On the distribution front, Torrent Power serves 4.21 million customers across Gujarat, Maharashtra, Dadra and Nagar Haveli, Daman and Diu and Uttar Pradesh, delivering approximately 31 billion units annually. Renowned for its operational excellence, the company maintains the lowest distribution losses and highest reliability indices in its Gujarat licensed areas, cementing its reputation as a leading and trusted power distributor in India.

The stock has a 52-week high of Rs 1,640 and a 52-week low of Rs 1,188. Torrent Power Limited has a market capitalisation of over Rs 73,000 crore. The stock has delivered a 3-year return of 190 per cent and an impressive 10-year return of 600 per cent. The company's Price-Earnings (PE) Ratio stands at 23.

Disclaimer: The article is for informational purposes only and not investment advice.