Torrent Power Limited has informed the Exchange about Credit Rating
TORNTPOWER · price
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CRISIL Ratings has reaffirmed Torrent Power's long-term credit rating at 'CRISIL AA+/Stable' for bank loan facilities of ₹11,130.69 crore, non-convertible debentures of ₹3,140 crore, and a proposed NCD issue of ₹2,000 crore. The short-term rating for bank loan facilities and commercial paper of ₹1,650 crore has been reaffirmed at 'CRISIL A1+'. The rating rationale highlights the company's improved financials, with net debt to EBITDA falling to 1.4 times in FY25 from 2.2 times in FY24, EBITDA rising to ₹5,436 crore from ₹4,632 crore, and net gearing dropping to 0.4 times. CRISIL also factored in Torrent's recent binding agreement to acquire Nabha Power Ltd (1,400 MW thermal plant) from L&T for ~₹6,889 crore, expected to close by June 2026. Outlook remains Stable despite a large capex pipeline of over ₹60,000 crore through FY32.
Rating reaffirmation at AA+/Stable signals continued strong credit quality and lower borrowing costs for the company. Shareholders can expect stable business risk profile, though the planned ₹6,889 crore debt-funded acquisition and large capex could push net leverage above 3.5 times in the medium term, which will be closely monitored.