Torrent Power Q4 Results: Profit increases 146.3% YoY, Company Declares ₹5 Dividend

Torrent Power has reported a robust financial performance for the fourth quarter of the fiscal year 2025, with a significant increase in net profit, alongside the announcement of a final dividend for its shareholders. 

Quarterly Financial Highlights

For the quarter ending March 31, 2025, Torrent Power's net profit soared by 146.3% year-on-year, reaching ₹1,059.6 crore. This compares favourably to a net profit of ₹430.2 crore in the corresponding quarter of the previous fiscal year. Conversely, the company's revenue for the quarter saw a marginal decrease of 1.1% year-on-year, standing at ₹6,456.3 crore. This is against a revenue of ₹6,529 crore in Q4 FY24.

Despite the revenue decline, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) registered a modest increase of 1.9%, rising to ₹1,130.4 crore. This improvement contributed to an expansion in the EBITDA margin, which stood at 17.5% for the quarter, up from 17% a year ago.

The EBITDA margin increased by 53 basis points compared to Q4 FY24. A substantial drop in tax expenses supported the earnings increase, largely driven by a one-time, non-cash reversal of deferred tax liabilities worth ₹637 crore. The company also recorded gains from the sale of non-current investments.

The company also reported a Total Comprehensive Income (TCI) of ₹1,085 crore for Q4 FY25, marking a 142% increase from ₹448 crore in the same quarter last year. For the full fiscal year FY25, TCI stood at ₹3,059 crore, up 63% from ₹1,882 crore in FY24. As of March 31, 2025, the company's Net Debt-to-Equity ratio was 0.40, and the Net Debt-to-EBITDA ratio was 1.41.

Shareholder Returns: Final Dividend Declared

In recognition of its performance, Torrent Power's board has recommended a final dividend of ₹5.00 per equity share for FY25. This represents a 50% cash payout, given the face value of ₹10 per share. Including the interim dividend of ₹14.00 per equity share, the total dividend for FY25 amounts to ₹19.00 per equity share.

The company has indicated that the final dividend, if approved by shareholders at the upcoming Annual General Meeting (AGM), will be paid to eligible members on or before September 4, 2025, subject to tax deductions.

Market Reaction and Outlook

Following the announcement, Torrent Power's stock closed higher, finishing in the green at ₹1,452.85 per share, a rise of 1.79% from the previous close of ₹1,427.30. The stock has shown significant growth over recent years, gaining 172.15% in the last 2 years, 236.66% in the last 3 years, and 378.86% in the last 5 years.

For today's session, the stock opened at ₹1469.90, but is currently trading at ₹1434, with a decline of 1.10%. The slight decline in the revenue can be the reason for the decline in the share price of the company.

Torrent Power's performance in maintaining profitability despite a slight revenue contraction will be a crucial aspect to watch moving forward. The strong Q4 results and the final dividend position the company as an potentially attractive option for investors.

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