Torrent Power Limited (NSE: TORNTPOWER) Q4 2025 Earnings Call dated May. 14, 2025
Corporate Participants:
Saurabh Mashruwala — Chief Financial Officer
Analysts:
Mohit Kumar — Analyst
Sumit Kishore — Analyst
Unidentified Participant
Atul Tiwari — Analyst
Analyst
Presentation:
Operator
Thank you hello ladies and gentlemen, good day, and welcome to the Torrent Power Limited Q4 FY ’25 Earnings Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance During the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.I now hand the conference over to Mr Saurab, Executive Director and Chief Financial Officer. Thank you, and over to you, sir.
Saurabh Mashruwala — Chief Financial Officer
Thank you so much. Much. Good day. Good evening to all of you and thank you for joining earnings call of Torrent Power for Q4 FY ’25. First, I will take you through the performance of the quarter, after which phone lines will be opened for Q&A session.
Operator
Ladies and gentlemen, please stay connected while we reconnect the management line ladies and gentlemen, we have the management line reconnected. So you can go-ahead. Thank you.
Saurabh Mashruwala — Chief Financial Officer
Good evening to all of you and thank you for joining earnings call of Torrent Tower Q4 FY ’25. First, I will take you through the performance of the quarter after which phone lines will be opened for Q&A session. Explain the performance of the company at PBT Wealth first and then we’ll take you through the tax expenses separately. Imported for the quarter stood at INR619 crores as compared to INR617 crores in the corresponding quarter of last year, an increase of INR2 crores on a reported basis.
As informed in the last quarter, 420 megawatt TPL solar project got commissioned during the last quarter. So the plant is under stabilization phase, it was not able to make optimum contribution to the bottom-line. Hence the consolidated PBD has been impacted negatively.
So considering plant running on a PDC basis, PBD for the quarter would have been higher by approximately INR35 crores. Adjusted for the same, the adjusted PBD for the quarter stood at INR654 crores as compared to INR617 crores in the comparable quarter of last year is higher by INR37 crores.
There is a growth of about 6% the business sector contributing to the performance are as follows. First, contribution from distribution business improved by INR112 crores mainly due to higher volumes and increase in ROE on capitalization of capex, solar incentives and other ovarian incentive and through a power.
Demand growth during the quarter was about 4% across all our distribution areas. Positive in our distribution business were partially offsetted by following reasons. First, they were contribution from the merchant power and LNG sales by INR488 crores. LNG prices have been continued to remain elevated during the quarter, trading between $12 to $17.
Corresponding merchant sales remained subdued due to elevated fuel price and lower demand growth for the quarter. Third, however, the recent gas price has started — started witnessing downward trends competitive gas price coupled with NVB and tenders and better demand for prospects, we expect the situation should be — should have improved going-forward.
We got the LOE from NVBN for Digen project for 1150 megawatt is in 150 megawatt plant. So the operational PDF for the NVNVN tender is from 16 March to 15th October and broad specification for the tender remains same as per the last year tenders. HGS was a one-off as explained about profitability for the solar generation improved during the quarter by INR43 crores, partly offset by the lower PLA for wind projects on account of weather condition having negative impact of about INR30 crores. So net positive impact for the renewable is INR13 crores.
Moving on the tax expenses as informed earlier and was not forming part of the published account, there has been a decrease in tax expenses mainly due to the reversal of liability being one-time and non-cash items. This complete the explanation of the financial performance during the quarter.
Moving into the project update, 84 megawatt out-of-the 60 megawatt MSC project was commissioned during the quarter. This aggregate installed generation capacity of the company stood at 4.8 gigawatt as of 31st March ’25, comprising of 2.7 gigawatt gases capacity, 1.7 gigawatt of renewable capacity and say 62 megawatt of coal-based capacity.
Pipeline project at the end-of-the quarter includes 3.1 gigawatt renewable capacities, 3 pump capacities and two transmission projects at and the solar pour. Further details on our transmission pipeline project have been summarized in our latest presentation — investor presentation available under our website.
Now I would like to take you through some of the key highlights during the year, including the financial the financials as well as the operating as well as strategic point. First, during the year, company did — it made an equity raise of INR3,500 crores through QIP, which is the first-in the last three decades by the Torrent Group.
For power projects, we are able to supply power in merchant market including NVV and and at a section 11 first time on the gases power plant by the government contributed — contributing significantly to the bottom-line. Our distribution business continued to set new operational benchmark with distribution loss of 2.34% in-license distribution business. It’s a and one of the lowest across the country —
Country comparable to the global benchmark. In our franchisee business area, achieved its historical low AT&C losses of 6.94% compared to 58.7% and it was taken over in 2010. On strategic front, company made significant progress in-building on its strategic initiative by entering into the first-of-its-kind India energy storage facility agreement with for supplying 2,000 megawatt storage hydroposite for 40 years.
The net-debt to EBITDA, net-debt to equity of 0.40 and net-debt to EBITDA of 1.41 times, the company enjoys strong balance sheet position with one of the best financial ratios among private sector players in power sector as well as poised for the next phase of growth.
That’s all for the today’s. I would like now request coordinator to open the line for Q&A session. We wish everybody to stay safe and healthy. Thank you so much. Operating, handing over to the operators.
Operator
Thank you very much.
Questions and Answers:
Operator
We will now begin the question-and-answer session. Anyone who wishes to ask a question may press RN1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use answers while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles our first question comes from the line ofMohit Kumar from ICICI Securities. Please go-ahead.
Mohit Kumar
Thanks for the opportunity. Sir, first question is on the — what was the capex in FY ’25 and the capex amount budgeted for FY ’26? And can you break-up this across the businesses?
Saurabh Mashruwala
So capex for license distribution was about close to INR1,300 crores for the full-year. Franchisees were about INR275 crores, Transmission is about INR250 crores and total capex is about close to INR1,98 crores means other than renewable capex, I would say what is about INR2,500 crores the breakup Just asking about the capex breakup for FY ’26 and capex for FY ’26 we explained that the distribution — distribution capex INR2,000 crores, INR75 crore for the license distribution business and about INR250 crores of distribution business. And I think we have given the investor PPD.
Mohit Kumar
Understood, sir. I think the PPT, you just mentioned the megawatt numbers right and the date of commissioning. Is that right?
Saurabh Mashruwala
Sorry, can you come again? Your voice is too low.
Mohit Kumar
Ohh, sorry, let me let me loud. Okay, so move to the next question, sir. I’ll open here now. My second question is on the and contract which is signed with the signed in the month of March. Is it take or pay contract and what is the minimum guaranteed volume which you agreed to?
Saurabh Mashruwala
So guaranteed volume is basically as more or less in-line with what we have done in the last year. So the specs more or less remains the same in terms of methodology.
Mohit Kumar
Okay, understood, sir. And any update on the progress of 1.2 gigawatt published oil project which is signed with the Maharashtra, what is the update? Have you done the financial closer? And any color on that?
Saurabh Mashruwala
The 2 gigawatt project, not 1.2 gigawatts. And see, it’s a four, five years project. So it is currently the various statutory approvals we are doing and into the DPR also. And in the process of land acquisitions also, this is what the progress is right now approvals we have to take. So that process is going on. Those land acquisition process also going on.
Mohit Kumar
Understood, sir. Thank you and all the best, sir.
Saurabh Mashruwala
Thank you.
Operator
Thank you. The next question comes from the line ofSumit Kishore from Axis Capital. Please go-ahead.
Sumit Kishore
Good evening, sir. My first question is a follow-up.
Operator
Sorry to interrupt you, sir. So before you go-ahead with the question, may I request you to please use your handset, sir, your audio is slightly — there is an echo in the line, sir.
Sumit Kishore
Is this better now?
Operator
Yes, sir, please go.
Saurabh Mashruwala
Yeah.
Sumit Kishore
Okay. So the first question is, you know about Mohit. So there is a capex for renewables, which is almost INR206 million as the expected project cost. Is this the residual amount remaining or what is the CWIP, which is already there for renewables? What is the balanced capex remaining for these projects?
And in terms of a rough phase-out over FY ’25, ’26, ’27, is it going to be more FY ’26 heavy, given the timelines of commissioning are more 2026, 2027 calendar year?
Saurabh Mashruwala
Yeah. So you are right, the capex which we have brought out in investor presentation is a total capex out of which whatever we have done is being shown in the CWIP. So balanced capex remains, which is a significant part still remaining as far as outflow is concerned. You are right in terms of saying that ’26 would be a larger number because of lot of commissioning being done in ’26 and ’27.
So ’26 could be a larger number. As far as renewable capex is concerned, ’27 would be lower — should be lower than that depending on how we progress in terms of commissioning of these projects. So ’26 will remain the heavy capex year as per little bit concerned.
Sumit Kishore
Yeah. And sir, if you could help us with the CWIP number for renewables specifically, it will just help us to better understand what you might tell so sure.
Saurabh Mashruwala
So I would say INR2,500 is roughly about INR2,500 crores capex for renewables to March ’25 25 and a significant amount of capex we are going to incur in the current year FY ’26.
Sumit Kishore
Got it. Over INR206, roughly INR25 billion is what you had incurred so-far.
Saurabh Mashruwala
Yeah, exactly.
Sumit Kishore
So what has been the experience so-far given power demand has been slightly depressed in fairly depressed in April and then it’s a decline in May for the first 13, 14 days. So how is your NBBM opportunity shaping out so-far? Is there acceptance?
Saurabh Mashruwala
I know there is a pass-through for variable-cost, but given the high overall power cost who is buying this power, what is your experience offtake? So they have increased the duration of the contract, so they are — earlier it was June now October. Last year it was after June on the extent of October. So now June is — May has started as though in fact, summer started.
Actually was being impacted because the rain and various factors, I would say. So hopefully, now the rain is behind us. So hopefully it will start — it will start picking-up. Summer is will start picking-up and demand will start growing, improving. So is it reasonable to sort of gauge that April and period in May so-far wouldn’t have seen much offtake of this expensive power.
Sumit Kishore
Is that directionally a right conclusion to draw?
Saurabh Mashruwala
Yeah, yes, it is happening. During the peak period is happening.
Sumit Kishore
Okay, okay. And so it’s very clear that in the second-quarter, there would be a direct benefit because this arrangement last year was only till June.
Saurabh Mashruwala
Yes, and that’s right.
Sumit Kishore
Yeah.
Saurabh Mashruwala
Yeah. So it is now it’s up to October. October 15, I would say.
Sumit Kishore
The last question on the UP privatization, what we are hearing is that the state will be divided into five circles for the two areas which are getting privatized. So is there any condition on how many circles one private player can take?
Saurabh Mashruwala
I think five or six circle they are talking about. Yeah. And the — it is under the — it is a documents in the preparation right now. So possibly they will invite all private sector players to participate in the tender. So more details will be, they are forming up the more details since they are holding — they are meeting — meeting is happening with the Ministry of Power is also get involved in the tender tendering process.
Sumit Kishore
Got it. So, but there is no chance hit ratio can be higher for more than a couple of players, even 5, 60.
Saurabh Mashruwala
They will try to allocate to each of the players and because ultimately need the management benefit to handle all six circles together. So better for them also, we will try to distribute among the private players. And this will be regulated cost-plus ROE model just like Anal parts.
Mohit Kumar
Absolutely, very, very attractive. Okay. And just finally, you know, on pump storage hydro, is there any progress in 2 gigawatt for that? I mean this is — but any progress that you would like to highlight?
Saurabh Mashruwala
In terms of progress I informed earlier to the Mohit, that it is under very various regulatory approval processes going on. The planned acquisition process is going on right now. So the first is — first is you to get the approval various approvals and landing position and then construction activity and ordering will start.
Sumit Kishore
Okay. Thank you so much. I wish you all.
Saurabh Mashruwala
Thank you.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Satriev Jain from Ambit Capital. Please go-ahead.
Unidentified Participant
Hi, thank you. First, just another clarification question on the pump storage project. The — the energy storage facility agreement was signed recently as per the release. If I understand correctly, the agreement was that the capacity needs to be commissioned within 48 months of signing this agreement.
So is there — given you are in the process of land acquisition and then construction doesn’t look like it will be commissioned within 48 months. I just wanted to understand,
Unidentified Participant
Is that flexible the term for commissioning which was laid out initially?
Saurabh Mashruwala
This is too early to comment on the timeline. So we are working — we know we are aware about the timeline. So we are working on the project right now on a various commissioning timeline. So fair to say the capex on this will not start in the next two years the capex outlay?
Unidentified Participant
No, sir.
Saurabh Mashruwala
One land acquisition will happen, it’s going to happen. So we start committing the capex because PPA is in-place, so we’ll start committing capex from the current year onward itself.
Unidentified Participant
Okay. Secondly, on the tender, just wanted some clarification. I know earlier questions also were asked around the sign. The tender specify is 111 crunch days and there is a minimum contract minimum guaranteed offtake based on those crunch days. So I’m guessing it started between two months. So there would have been some crunch days in the last two months.
How has been your offtake on the specified crunch days that were mentioned? So if it — because the crunch days of 111 will be spread-out across the six months, if I understand correctly.
Saurabh Mashruwala
Yeah, it is split out across six months. Minimum optic we are talking about. It can be higher also, but how was it in the? So how many crunch days have been there so-far in the last two months out of 111?, it is difficult to comment on the current quarter in terms of crunch days and all.
But if you look at it April and May, April, we saw some pickup in-demand, May because of, I think weather conditions, it has again gone down as far as demand — overall demand is concerned. But if you really look at the exchange data, there are periods where the prices are touching INR10, which indicates that there is demand — higher demand and lower supply. So intermittently, there has been offtake under the tender,
But it would be difficult to give you exact numbers for the current quarter per se. Trying to understand if I look at the math, the tender specifies 2,900 MU for the entire tender and given you participated with the capacity, it looks like you have minimum guaranteed offtake of 2,300 MU over till October, but that will be based on crunch days every month.
Unidentified Participant
So if I’m just trying to understand the demand has been relatively weak. If the NBV — the tender as per tender NBVN would be bound to have a minimum offtake against every crunch day and they can’t make it up later on. So just wanted on, is that the way it works and basically, which means on every specified crunch day they are taking the minimum guaranteed offtake that I’m trying to understand
Saurabh Mashruwala
So if you look at the demand scenario, last one-week was there, otherwise it’s basically we — so demand is there last one-week demand was weak. So, there is also some variability or some flexibility available for NVV and for generators also. So it is not or casting stone that these days you have to pick-up this much, this day you have to pick-up this much.
There is some flexibility under the tender, which people will utilize. But you have a minimum guaranteed offtake of 2,300 MU, if they don’t take-up in one particular month or quarter, then they have to make it up till. So that’s understanding? This is for the six months period, minimum guaranteed, if they don’t do it, then typically they have to pay for the fixed charges for 20 — for whatever they have contracted for.
It’s a basically commitment for the Six-Month if they don’t offtake, they don’t pick-up 2,300 MU, then they have to pay you a fixed-charge, which is mentioned in the standard.
Unidentified Participant
Absolute for the amount they don’t pick-up. And the overall return, just wanted to understand how does it stack-up against I know the pricing seems somewhat lower compared to NVV and tender last year. How does it — I mean, if you have to look at profitability per unit, is it — how does it stack-up against Section 11 that you had or maybe the last tender, NVV and tender for last year
Saurabh Mashruwala
I think profitability, if you look at it, this year also the profitability should more or less be similar to what we have seen last year under NVV and tender. I think Section 11 may not be a good comparison of NVV and NVV and tender. So ideally we should compare it with the last year NVV and tender.
Unidentified Participant
Isn’t the pricing somewhat lower compared to NVD tender last year saying per unit profitability would be similar to you versus last year NV in tender.
Saurabh Mashruwala
So there would be slight impact, but not a major impact per se, because there are other gains which you also make in terms of your opportun or your cost of buying gas would be — could be lower compared to what you are being paid-for. So you make some money out of that also, then there are operating expenses.
So if I put all together, I think profitability from current year NVV and tender should be more or less similar to what we have seen in last year which are slightly downward bias.
Unidentified Participant
Okay. Just on this particular gas only given you had section 11 last year, you have bigger period for minimum guaranteed offtake. And I mean, demand has been volatile, but the offtaker is there and is taking up power at these high prices. Generally, are you sensing some interest on some medium-term PPA, given — I mean, buyer is already buying this high gas prices, is there any interest at all from some parties for medium-term PPA for gas or given the demand is so volatile and it’s still expensive that we’ve not seen any interest at all.
Saurabh Mashruwala
No, I think right now, we don’t see any medium-term or a long-term contract being offered for gas simply because you can’t have control on the gas prices. So there is no pricing confirmation on the gas prices, which means the offtaker would also be open for the variability. And since demand is also very, very variable, it’s difficult to do a long-term or a medium-term contract right now.
So that is why in fact, if you look at that, we have committed a higher capacity from the DJN as compared to last year.
Unidentified Participant
Okay.
Saurabh Mashruwala
Last, it was 720 megawatt. We have just doubled it about 1,000 megawatts. So we have increased our — okay, we have tied-up a larger capacity for the — and under the NVV and tender this year. The better understand the capacity is higher in the contract period is also, which is why the minimum guaranteed offtake amount quantity is much bigger. I mean, I would believe it is 2,300 versus last year.
I was just not able to understand if — so I think you clarify — that you clarified that if demand is not there, then if they don’t pick-up, they have to pay that sixed — assured six.
Unidentified Participant
Thank you so much for clarification.
Saurabh Mashruwala
There is a contract minimum guaranteed they have to complete — they have to our physically, so that is assured, I would say.
Unidentified Participant
Thank you.
Saurabh Mashruwala
Thank you.
Operator
Thank you. Our next question comes from the line of Atul Tiwari from J.P. Morgan. Please go-ahead.
Atul Tiwari
Yes, sir. Thanks a lot. Sir, just two questions. So what is the minimum guaranteed take or pay offtake for which the fit charges have to be paid under NVV and tender.
Saurabh Mashruwala
That we are not disclosing right now.
Atul Tiwari
Okay. Okay. And sir, my second question is on this project. So just trying to understand it a little more clearly. So as per the agreement, the commissioning period is 48 months. So has that clock started or is — is or the start of that clock contingent on first approvals being available and land being acquired.
Saurabh Mashruwala
It is started on the date of PPA signing. It has started.
Atul Tiwari
Okay. So okay, so the clock has started. But — but sir, if the land is still under acquisition and in many infrastructure projects, we see land acquisition can get delayed a lot and obviously, it is not under the control of a private company. So how does it work-in reality? I mean, if suppose land acquisition gets delayed by two years, then what is the remedy available to you under the PPA?
Saurabh Mashruwala
So it’s early to comment on land acquisition because we are in-process of doing it. So we don’t foresee, I would say, this is a launch today will happen acquisition of land. So early to comment.
Atul Tiwari
Okay. But any idea about how long land acquisition will take this? I mean, I mean, is majority of land acquired, 90% acquired or no — or just 20% acquired where we are in that spectrum.
Saurabh Mashruwala
Assul, I think there are multiple stages in when you say land acquisition, right? So we have identified the land. There are discussions going on. There are certain things which have been done. Now it is not a binary event. It will — it will be a stage-by-stage process. So we are fairly ahead in terms of final acquisition is concerned, but you can’t say that entire thing is being done.
And there are — there are different types of land. So I think We should be able to get the land in very short-time. But as of now, if you want to say an answer to it, I think we have not got the land as of now.
Atul Tiwari
Okay. Okay. And fair to assume that the financial closure will happen obviously only after land acquisition is done, right? Is that a right understanding or you guys are like hoping to do FC even before that?
Saurabh Mashruwala
Atul, it is — these are all simultaneous, land acquisition, scouting for various construction parties in terms of, let’s say, turbine suppliers, seawheels suppliers, financial closure. These are all activities which you do when you are getting — when you get an project or you win a bid. So financial closure has multiple — again, multiple layers into it. There could be a sanction which I can say that the disposal can happen if these CPs are finalized or these CPs are done,
Some part of disbursement can happen. So as far as all these different work streams are concerned, there are multiple layers into it.
Atul Tiwari
Okay. Okay, got it. Thank you.
Saurabh Mashruwala
Thank you.
Operator
Thank you. Our next question comes from the line of with Avendus Spark. Please go-ahead.
Unidentified Participant
Yeah. Am I audible?
Operator
Yeah. Please go-ahead.
Unidentified Participant
Okay. Yeah. So I missed the first part of the opening remarks. Can you give me the merchant EBITDA in this quarter and for the full-year FY ’25 so merchant 88 crores merchant negative.
Saurabh Mashruwala
Oh, hello. So no, I didn’t understand. So you’re telling this INR88 crores for the 4Q. Q4 as compared to the last quarter — comparable quarter of last year, it is lower by INR88 crores.
Unidentified Participant
Okay. Last year number, I have INR85 crores, so it’s basically nothing this quarter or minus 3 here. Okay. So for the full-year, the merchant EBITDA will be around INR750 odd crores, INR740 crores FY ’25?
Saurabh Mashruwala
Roughly year.
Unidentified Participant
Okay. A clarity on NVVN tenders. So as per my understanding, this first-quarter FY ’25, we benefited due to both NVV and second-leven opportunities. And what you are telling us now it is not, it’s only NVV and tenders. Is that right understanding.
Saurabh Mashruwala
Yes, as of now here as of now.
Unidentified Participant
Okay. And last year in the first — sorry, this year, first-quarter, the spread that we earned was around INR4 unit. So you’re telling that it might be roundabouts there with a lower-price on the spread. Is that the right understanding? Not a possible to comment on this. Okay. The other question is like how is this tender different from last year, like so is there a fixed revenue?
Saurabh Mashruwala
All right, it is on a similar line, so not much difference, I would say. I mean, I’m not aware of how it was last year, meaning is there a fixed tariff or is it like variable-cost plus some margin. You will get some — you will get the fixed RV as per the tenders. Well, you will get some differential amounts because our variable-cost is lower, so we get some margin for the variable-cost also.
Unidentified Participant
Okay, okay. And how much will that fixed-charge be per unit? Sharing that number. We are not sharing that number. Sure. Okay. That’s it from my side. All the best, please.
Operator
Yeah. Thank you. Our next question comes from the line of Aniket Mittal from SBI Mutual Fund. Please go-ahead.
Unidentified Participant
Yes, sir. Thank you for the opportunity. In the presentation, I see an increase in the merchant capacity that you want to build-out. It’s almost doubling from about 200 to 400 megawatt. I just want to understand the thought process on that and what sort of realizations do you expect to see on this merchant plant?
Saurabh Mashruwala
Yeah. So we see lots of potential. If you look at-the-market also, we see lots of potential for the merchant market. So — and we will tie-up at some point of time those open capacity. Right now, we plan to build-up merchant capacity and during the course of construction and going-forward also, whenever the opposite is available, we’ll tie-up that capacity.
And Anikesh, if you see the merchant capacity, which has been added right now is wind capacity. So if you really look at it, the prices have gone down in solar hours. But if you really look at it in the non-solar hours, the prices have been fairly stable or an upward sloping curve. So these are all wind capacities which putting up.
Unidentified Participant
And as Saurabh rightly mentioned, going-forward, if opportunities available, we would — we may tie-up these capacities also.
Saurabh Mashruwala
Sure. In the medium-term, did you plan to add more on merchant because we’ve incrementally been increasing our targets on that? Just on a portfolio level, is there like a percentage mix of merchant that you’re thinking? Right now, this is what we are planning right now at this moment.
Unidentified Participant
Okay. And other part was just on hydro, and to understand a bit better, let’s say from a capex perspective, internally, when do you think the capex in the palm dryder should start coming in? And let’s say, internally, what are your capex estimates specifically on the palm dryder front for FY ’26 and FY ’27.
Saurabh Mashruwala
So some capex will happen, we’ll start incurring capex for the current year onwards from the land acquisitions and some initial payment to the — for the equipment. But I would say major capex will happen in next two years, I would say.
Unidentified Participant
Suppose 26 — 26, ’27 and 27 28 and just one clarification I had. So this INR637 crores of one-off in the deferred tax, has this been completely done in 4Q itself?
Analyst
Yes, Q4 itself here.
Unidentified Participant
Okay. Thank you. Those are my questions. Thank you.
Operator
Thank you. Our next question comes from the line of Anuj from Investec. Please go-ahead.
Unidentified Participant
Yeah, hi. Thanks for the opportunity. Sir, what will be the capex in the transmission segment? You mentioned for FY ’26. Last year it was INR250, I guess. So the presentation I see is we are likely to commission two transmission projects amounting to roughly INR1,200 plus-odd crore in FY ’26. So could you give some kind of a guidance on the capex on the transmission side for FY ’26?
Saurabh Mashruwala
The capex is from these two projects, we anchor about INR250 crores capex in FY ’25 and remaining majority capex, I would say balance from the balance capex would happen in the next current year, I mean, ’25, ’26. So roughly INR900 crores to INR1,000 crores would be in this year. Right can achieve that number.
Unidentified Participant
Okay. And we are not seeing any kind of a delay or evacuations related concern in there. But it’s pretty firm to get commissioned in the current system. Not material I would say. Sorry, sir, not material, I would say. Okay, okay. Yeah, that’s it, sir. Thanks for it. Thank you.
Operator
Thank you. Our next question comes from the line of Gaurav with Axis Mutual Fund. Please go-ahead.
Unidentified Participant
Hello, sir. Thanks for the opportunity. Sir, a lot of opportunities are opening up on the thermal side from the state side. Are we evaluating those opportunities as well? I mean, do you want to expand on the core side or our focus is on PSP and renewables them?
Saurabh Mashruwala
Yeah, we are looking at both brownfield as well as greenfield also. So that is what we are evaluating. So we are not committed anything, but yes, we are evaluating it.
Unidentified Participant
Understood. Thank you.
Operator
Thank you thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Saurabh Mashruwala
Thank you, everybody for joining Power’s earnings call. We wish — we wish everybody to stay safe and healthy. Thank you so much. Thank you.
Operator
Thank you. On behalf of Torrent Power Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Saurabh Mashruwala
Thank you so much.