Torrent Power to Acquire L&T Subsidiary Nabha Power for ₹6,900 Cr

Torrent Power Acquires Nabha Power, Boosting Operational Capacity

Torrent Power, a prominent energy company, has made a significant move by acquiring Nabha Power, a fully contracted thermal power asset.

Key Highlights of the Acquisition

• Revenue: ₹4,866 crore
• Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA): ₹1,153 crores
• Supercritical plant with sustained availability levels above 90%

Impact of the Acquisition on Torrent Power

The acquisition will increase Torrent Power's operational capacity from 5 GW to 6.4 GW, further solidifying its position in the power market.

Expert Insights

Samir Mehta, Chairman of Torrent Power, said:

This acquisition marks our entry into the fast-growing power market of northern India. Nabha Power will become a strong and high-quality addition to our portfolio.

The acquisition will start contributing to our revenue and profits from day one, and our experience in operating and managing power assets will help improve efficiency further and increase the scale of our power business.

Mehta highlighted that the acquisition is particularly attractive because it does not involve the risks typically associated with building a new project from scratch.

Benefits for L&T

S N Subrahmanyan, Chairman and MD of L&T, said:

The sale of Nabha Power fits with L&T's strategy of unlocking value from non-core assets and sharpening its focus on its main businesses.

This decision will help the company create long-term value for all stakeholders, including shareholders, business partners, and employees.

Disciplined Approach to Growth

Mehta emphasized that the transaction expands Torrent Power's footprint without introducing development or execution risk and further enhances portfolio diversification while remaining firmly aligned with the company's disciplined approach to growth, prudent capital allocation, and balance-sheet resilience.