Torrent Power buys Newzone firms for ₹211 crore to set up Madhya Pradesh thermal project

Ahmedabad-based Torrent Power Limited on Tuesday (September 23) said it has acquired shares of Newzone India Private Limited (NZIPL) and Newzone Power Projects Private Limited (NZPPPL) for a total consideration of ₹211 crore.

The acquisition includes 11,95,110 shares of NZIPL, representing 49% equity, and 30,00,000 shares of NZPPPL, representing 100% equity, from the Sarawagi Family and related HUFs. NZPPPL already held 51% in NZIPL, making Torrent Power the effective owner of both companies.

NZIPL holds approximately 922 acres of land comprising private and government-leased land in Annupur district, Madhya Pradesh, which is proposed to be used for implementing a thermal power project. The companies have no other assets and reported no turnover in the last three years.

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Torrent Power confirmed that the transaction does not fall under related party transactions and was executed on a cash consideration basis. The acquisition is expected to be completed within four months. NZIPL was incorporated on October 12, 1999, and NZPPPL on February 28, 2008, both with the objective of power generation.

First quarter results

Torrent Power reported a 24.7% decline in net profit at ₹731 crore for the first quarter over ₹972 crore in Q1FY25. Revenue from operations fell 12.5% to ₹7,906 crore from ₹9,033 crore a year ago.

At the operating level, EBITDA tanked 20.2% to ₹1,483 crore in the first quarter of this fiscal year over ₹1,857 crore last year. The EBITDA margin fell to 18.7% from 20.6% year-on-year.

Torrent Power reported a total comprehensive income (TCI) of ₹739 crore in Q1FY26, compared to ₹993 crore a year ago.

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While the company’s underlying business remains resilient, the current quarter’s performance was impacted by lower power demand due to the early onset of monsoon and elevated gas prices, which affected merchant gains from gas-based generation. Adjusted for these factors, TCI remained comparable to the same quarter last year.

Shares of Torrent Power Ltd ended at ₹1,279.20, up by ₹10.65 or 0.84%, on the BSE today, September 23.