Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Torrent Power Limited (NSE: TORNTPOWER) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Saurabh Mashruwala — Executive Director, Chief Financial Officer
Rishi Shah — GM Finance
Analysts:
Mohit Kumar — Analyst
Sumit Kishore — Analyst
Satyadeep Jain — Analyst
Bharani V — Analyst
Anuj Upadhyay — Analyst
Unidentified Participant
Dhruv Muchhal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Torrent Power Ltd. Q4FY26 earnings conference call. From the management team, we have with us Mr. Sourab Mashruwwala, Executive Director and CFO Mr. Rishi Shah, GM Finance and Mr. Jayaprakash Khanwani, AGM Finance. As a reminder, all participant lines will be in the listen only mode and there’ll be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Stardom zero on your touchdown phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Sourab Mishrawala. Thank you. And over to you sir.
Saurabh Mashruwala — Executive Director, Chief Financial Officer
Thank you so much. Good morning to all of you and thank you for joining earning calls of Torrent power for Q4FY26. First I will take you through the performance of the quarter after which we would welcome questions. We’ll explain the performance of the company at PBT Elbal first and then we’ll take you through the tax expenses. Separately reported, PBT for the quarter stood at 547 crores as compared to 619 crores in the corresponding quarter of last year, a reduction of 72 crores. PBT for the current quarter includes non recurring provisions of 171 crores arising due to capping up for power purchase costs for homosurgent power projects in the year FY2425 to a quarter.
A similar restriction has been imposed in earlier years as well which was contested by us and subsequently approved in our favor. As a result, a credit of 273 crores was recognized in PNDL in the previous quarter of the current year. Considering prudence provision has been recognized in the current quarter based on the past president, we are reasonably certain that the current matter will be also approved in our favor. Adjusted for this one off, PPT for the quarter stood at 718 crores as compared to 619 crores in the comparable quarter of last year.
An increase of 99 crores that is 16% on adjustable fees. Tax expenses were lower during the corresponding quarter of last year due to non cash reversal of deferred tax liabilities of 637 crores. Hence the deferred tax liability is not comparable. Business wise factors contributing the performance are as follows. First, receipt of favorable orders from the regulators approving the carrying cost of previous years of 186 crores. Receipt of incentive for installation of solar rooftop in Ahmedabad and sugar by 58 crores reduction in TND saving in license distribution units due to significant reduction in normative parameters by regulators partially offset by improved TD losses in distribution license distribution franchisee business by 15 crores.
Additionally, the contribution from the license distribution business was supported by the increase in ROE and ROCE on account of capitalizing assets and higher rate of returns on equity as per new tariff regulations and other incentives increase of 15 crores. We would like to take you this opportunity to apply certain pertinent changes in the tariff regulations which respect to allowance of ROE and ROCE once assets capitalized. There are two situations one for this for asset capitalized on or after first April 25, returns are now allowed on a return on capital bumper basis wherein the underlying return on equity is for entered at a base ROE of 13% which can go up to 15% based on the achievement of incentive minestrone stipulated.
This is as compared with the fixed Roe of 14% in the previous AGV for the asset capitalized prior to first April25. The situation is method of allowing of the return on equity on the regulatory equity based continuum as under the earlier framework. However regulator has allowed incentive to be approved on this asset also based on achievement of incentive milestone which in effect has increased the effective roe up from 14% to 15%. It is pertinent to note that the performance based incentive including included within the ROE are over and above the incentive which were available which were already allowed in the form of saving in controllable expenses.
This effectively has probability to improve ROE by 1% on an annual basis depending on the performance of the licensed distribution business. Further, the regulatory gap for the company has been reduced by almost 800 crores backed by better operational efficiency as well as lower power purchase costs which at remains the same. As of last year. Contribution from thermal generation business adjustable non recurring Items decreased by 90 crores mainly on account of two factors. First, additional ONF expenses incurred in the quarter on account of scheduled maintenance and second reversal of certain provision made during the corresponding quarter of last year under the thermal tax thermal generation segment.
The third reason contribution from the renewal generation reduced by 20 crores meaning on account of income from generation based incentive on account of achievement of statutory threshold timeline allowed for the incentive. The other factor contributing to lower profitability was on account of increase in Michelin expenses and depreciation which was on account of higher capitalization mean in the renewable segments and the increase in finance cost backed by the higher capitalization and related borrowing.
This complete the explanation of the financial performance in the quarter moving on to the projects update the Progressive Commission of 367 megawatt MSC DCL project aggregate install capacity generation capacity of the company stood at 5.1 gigawatt as on March 31 March 26 comprising of 2.7 gigahertz of gas gigawatt of renewable and 362 megawatt of gas based capacity. Kabula transmission project got commissioned during the quarter for implementation of 1.6 gauge thermal project in MP activities are underway wherein following major milestone have been achieved.
First powerful agreement exhibited with NP Power Management Co. Ltd. Second later of litter of award issued by boiler turbine and generator as well as balance of plant and environmental clearance received for the project. The second project updates on on account of hydro pump storage. Hydro project for implementation of 3 gigawatt pump storage hydro capacity activities are underway where the following major milestone have been achieved. Another storage facility agreement with MSCDCL executive Second later of award issued for a civil and hydromechanical package as well as electrical and mechanical package and third environmental clearance received for the project taken as NABA power acquisition.
CP compliance are underway right now and transaction expected to complete it in the current quarter. Apart from these, renewable projects of 4 GW and transmission project of Solarpur are under implementations. Further details of the pipeline project have been summarized in our latest universal presentation available to in our website side. That’s all for this quarter. Now I would request coordinator to open the line for Q and A session. We wish everybody to stay safe and healthy. Thank you so much.
Handing over to the operators.
Operator
Thank you very much. We’ll now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles participants. You may press star and one to ask the question. The first question is from the line of Mohit Kumar from ICICI Securities.
Please go ahead.
Questions and Answers:
Mohit Kumar
Yeah, good morning sir. Thanks for the opportunity. My first question is can you please help us again with the one off in the quarter in generation and explain the nature of the one off. I think we missed. I think you mentioned opening commentary but I missed. Could not understand it. Yeah,
Saurabh Mashruwala
So one off item is basically power purchase cost which they have kept it for FY24, 25 and 2 of was due by March in the last quarter of. We got the 2 accord in the last quarter of March. So in the last part of March they have kept the power Uno Sujan power purpose particularly and they have reduced the they have made a decent allowance of 171crores that is one of items for the Empower projects. But as we highlighted we informed that the in the earlier quarter similar allowance was given by 2,73 crores.
We made a provision earlier which was allowed by the regulators in the previous quarter so we are hopeful that the this will also will get approved in due course.
Mohit Kumar
Understood. And this order came in the March quarter, am I right?
Saurabh Mashruwala
March yeah, before March. Before 31st of March 26th.
Mohit Kumar
Understood. My second question is can you help us with the gas availability and clarify about whether there’s the earning risk to the others? Any availability risk of the gas for our gas based power plants is in FY27.
Saurabh Mashruwala
So yes, the as we informed earlier also that we have contracted three cargoes for meeting the summer demand so that we are getting those cargoes we are not being impacted because of the war situation between the US and Iraq. So the summer cargo for the summer meeting the summer demand we have contracted three cargoes out of these two cargoes we already received it. The next cargo is expected to come in the month of June. So for meeting the summer demand so that situation remains same and the situation going forward?
Yes, price has gone up a bit but we expect that things will stabilize in some time and supply will start. We will start the supply will flow in I would say from the state of foremost and as far as the supply is concerned our view is that the gas There is ample amount of gas is available in the market though the price because of the current situation price has gone up but as far as supply is concerned it’s not a major concern. I would say so availability proving availability is not the issue. We will continue to get the recover the fixed cost based on the availability of cash price is yes, bit higher Will will take some time to stabilize
Mohit Kumar
And my last question on the. On the Capex which you did in F26 can you help us with the number and also the segment wise Capex and your expectation of capex in F27.
Saurabh Mashruwala
So in terms of. Can I give the full year details or the quarterly details? You want
Mohit Kumar
The full year details, sir? F26 full details. Yeah
Saurabh Mashruwala
Yeah. So license, distribution and franchisee we incurred almost 1600 crores capex for the full year transmission. Since the one project Kabrah project has got commissioned solar board under construction Right now we spend about almost 550 crores in transportation transmission projects Thermal project Particularly the coal based project we spend about 700 crores capex. The renewable is a substantial chunk close to 6500 course capex we spend the further renewables.
Mohit Kumar
And the capex number for F27 sir expectation how much
Saurabh Mashruwala
It will be definitely higher than this. So I would say definitely much much higher than this amount.
Mohit Kumar
Is it right 2x of this number.
Rishi Shah
So Mohit, we will not be able to give you any guidance per se. But you know investor PPT we have uploaded project wise SEOd dates
Mohit Kumar
Guidance
Rishi Shah
Would be difficult to give. But what we can say is that current year capex the next year capex would be higher than what we have incurred in FY26.
Mohit Kumar
Understood sir. Thank you and all the best. Thank you.
Rishi Shah
Thank you.
Operator
Thank you. Participants, you may press star in one to ask a question. Next question is from the line of Sumit Kishore from Access Capital. Please go ahead.
Sumit Kishore
Good morning Sarabhai and Rishi. My first question is. You know around gas again. Good to hear that two cargoes of gas out of three have come. What are the chose countries which you are getting gas now? And the LNG sourcing agreement which was with BP Jarrah I think which kicks off. You know I think 2027 is. Is that. Was that from Middle east countries or is the sourcing not specified in the contract?
Saurabh Mashruwala
So the cargo which two. Two cargoes we have got it. It’s not coming from the state of hormone. It is other than so Sita formula. So we have. We are getting the cargoes third cargoes also we expect will will get it so should not be an issue. That is what currently we foresee
Rishi Shah
In terms of
Saurabh Mashruwala
The supply starting from FY current calendar 27 years it is on with the DP and JR so and hopefully things will be normal at 5% that that time should not have any material issue. I wouldn’t getting the supply in FY calendar 27 onwards
Sumit Kishore
EP J would be how many cargoes in the next financial year.
Saurabh Mashruwala
So in total both. Both of them combined around 10 cargoes per calendar year.
Sumit Kishore
Oh that’s a lot of gas. So this is only for torrent power. Over torrent gas also
Saurabh Mashruwala
Something will be. We have to allocate for the torrent gas also.
Sumit Kishore
So how much is the current power which is relevant for us?
Saurabh Mashruwala
About 555 for Torrent Power.
Sumit Kishore
Got it. And is the pricing in the contract for the three cargoes for summer demand this year is around $10 is my understanding.
Rishi Shah
So Sumit will not be able to give you exit pricing but those these are all fixed cars and hence they are not high as what we see at the spot prices. So they are lower than that.
Sumit Kishore
Yeah. The second question is on the TND segment. So you, you explained a couple of non recurring items during the quarter. But what I’m more interested is interested in is that after the shift in the return framework on a like for like basis, if you would have calculated your sort of return under the new regime versus the old regime, is that proving to be ROE accretive and to what extent? You know. So if you can sort of help explain this particular point.
Rishi Shah
So yeah, let me take that question. So basically if you look at it, the ROE regime which was earlier was 14% flat. Now it has been shifted to ROCE. But assets which were capitalized pre 1 4, 2025, those will also get incremental incentives if we are able to perform. So if I look at it current year, the ROE is better than what we would have earned under the under the earlier regime. Now the incremental incentives will depend on the performance based incentives. Which means if you, if you are able to manage that or if you’re able to get that, you will have higher incremental roe.
Assuming that we will be able to achieve those performance based parameters, ROE definitely will be higher than what we got under the earlier regime.
Sumit Kishore
Rishi, you are already one of the best operating discoms in the whole country. I mean the AT and C losses are and a half percent if I remember. What better can you do? So what is the performance?
Rishi Shah
Yeah, so it’s not only TND losses. So it is, it is a host of factors which also takes care of your availability of network. It also takes care of your smart meters. How are you achieving that? It also talks about definitely TND losses and all. It also talks about your collection efficiency. So there are milestones being given. So we are hopeful of get achieving
Saurabh Mashruwala
The most of the milestone. That is what the current expectations
Sumit Kishore
Got it. Just the last question on the renewable segment. So there was a year on year decline in PPD it in the quarter from the renewable segment. So are you also getting impacted because of the curtailment issues? And how are you placed in terms of evacuation for the 4.3 gigawatt peak that you are under that is under implementation. And so how would you phase out the capacity addition after a rather lackluster year if I may say so in terms of capacity addition for Torrent power at 250 megawatt plus how what is it looking through FY2728 and what is the phasing, how much will come in first half and second half of the year if you can give some color.
Saurabh Mashruwala
So we are not impacted by this scenario I would say and we have activated epa so we are not worried. Only open capacity, very minuscule open capacity. So there is no curtailment I would say in our enabler power project in supply. So we are not impacted and we don’t expect that there will be some impact going forward also because of the curtailment thing.
Rishi Shah
So as far as phasing is concerned, sumit so effectively we expect that next year there should be 1.2 to 1.4 gigahertz of commissioning. If you look at the phasing, if look at our investor ppt we have broadly given which projects are expected to come along with months which are expected to come. So you can refer that.
Sumit Kishore
Sorry, sorry. I think yeah that that information is there. Thank you.
Operator
Thank you. Next question is from the line of Satyadeep Jain from Ambed Capital. Please go ahead.
Satyadeep Jain
Hi. Thank you. Just a first clarification on the one offs. So if I understood correctly generation reported ebitda loss is 39 crores. You’re saying there’s a one off of 170. So that gets added but still that’s maybe 120130 crore of adjusted EBITDA which is typically lower than the EBITDA you generate on the regulated assets. So what is driving that or is there anything else we are missing? And secondly on the one off would be just clarifying. So 110010 odd crore is the transmission distribution beta.
You’re saying there is 186 crore of one off there. Right. This clarification on the one off
Saurabh Mashruwala
Generation, as you rightly said that the 171 crores of the charge we have taken in the generation business which has integrated the generation EBITDA removing that there is a about 90 crores reduction mainly because of two factors. One is the higher ONM expenses because of our scheduled maintenance and we made some certain provisions last year. We have reversed certain provisions last year which is not the case this year. That is that both has impact on the generation EBITDA in terms of distribution.
We got the carrying cost order in the month of March and we have booked depreciation income of 186 crores. And this is a routine feature. I would say it’s not. Basically we don’t see as E as a one off because every year we are getting carrying cost because of the regulatory assets we have built up. So Far so it will be a routine feature and we keep on getting this kind of order as and when the certain items will be approved in our favor.
Satyadeep Jain
Okay. Second on the gas business you mentioned there are 10 cargoes you have contracted and some will be torrent gas and torrent tower. Just wanted to understand how do you have to show availability because 78 cargoes for torrent power will not be sufficient for showing 80 85% availability. How what do you have to show to get the full carrying cost? Just understanding how that process works and also at the current gas prices do you see any potential at all for selling into htam? Are you seeing any demand in HTM or do you see any LNG trading gain possibility at the current slope levels?
Saurabh Mashruwala
The 10 cargoes which we have booked from the next turn onwards these are we have contracted 10 cargoes but we always spot market or anything hasn’t been required. We we can we can buy it. Basically it’s not these are the cargoes available only so always opportunities available to buy more cargoes. Also as in demands we see the demand coming in and the price are reaching reasonable.
Sumit Kishore
So yes procurement
Saurabh Mashruwala
Will go up based on the demand and the price going forward. And
Rishi Shah
Satyavi just to add effectively if you look at it last four or five years my EPA based gas based thermal power plants their average PLs has been around 30 to 35%. If I if I assume that kind of PLF going forward also six to seven cargoes are sufficient enough to take care of that effectively all these cargoes are take or pay contracts. So if you assume at 85% TLF and book your cargoes and if that is not lifted by the discom then you are you are looking at the take or pay penalties or take or payments to be made.
So what we try to do is manage the flexibility of gas based on the this com demand and as Aurope rightly mentioned that we anyways have spot available if there is a need for cargoes
Saurabh Mashruwala
So and gas is available so demonstrating availability is not at all an issue which we have demonstrated earlier also where while reporting about 35% PLF so demonstrating the availability is not an issue. We will always demonstrate availability because ample amount of gas is available in the market.
Satyadeep Jain
So you try to show availability based on maybe anticipated TLS and in case the availability demand is higher because the availability has to be in sync with the schedule. In that case you would just book cargoes on spot and show availability otherwise they will be under recovery if there is
Saurabh Mashruwala
Always available so it’s a question of pricing at what price gas is available. So if price is reasonable we always import the gas and that is what we did previously also and we have a fair amount of coverage available next round world. So availability demonstrating availability will not we don’t foresee any issue
Satyadeep Jain
The possibility of maybe htan at all current prices or LNG trading at current slope. Are you seeing anything in the near term?
Rishi Shah
So I think at current prices there would be very hard, very difficult to sell power on the merchant prices at current $20 or $16 sort of gas prices. If prices go down, LNG prices and demand considering what we have seen in last two months, if that remains then there could be a possibility going forward. But for that LNG prices in the international market should come down
Satyadeep Jain
In LNG trading anything slow given the current slow
Rishi Shah
Right now we don’t have many cargoes booked so there is no inventory right now with us for trading business.
Satyadeep Jain
Just last very quickly on the leverage you’ve obviously exercised the optionality by using capital for nabapower and also for mp. Given the leverage that you’re looking at right now, is there potential are you looking at deploying more capital on any new thermal bids or any other opportunity or for now you think you’re comfortable with the leverage and maybe execute the projects you already have?
Saurabh Mashruwala
No. So see if you look at the power sector phase right now and our leverage ratio is quite comfortable and with the committed capex also we don’t see that the leverage will exceed beyond our reach I would say. So there is an enough cushion available within the balance sheet to take up more project. We are getting the good project, the good returns also. So there is no restriction I would say in terms of leveraging things to take up any further opportunities for investment. And
Rishi Shah
Satyaji all these thermal projects are typically five, six years sort of investment cycle which you see. So right now the capex cycles or the committed capex which we have goes till FY31 32 and if you really look at based on current profitability and the new projects coming in the leverage is under control and once the project commissions it falls off significantly once EBITDA starts coming in. So we feel that there is still room for us to take on incremental projects as far as thermal is concerned or renewable is concerned considering that new project will start giving us EBITDA cash flows as soon as they commission
Saurabh Mashruwala
The capex. Current CAPEX facing is well balanced so we will able to manage any incremental project coming into fund. Those can pass capex
Operator
Okay, thank you so much. Thank you. Next question is from the line of Socrate Patel from my side finte please go ahead.
Sumit Kishore
Good morning to the team. I have two questions. My first question to Mr. Saurabh is in your point of view how is torrent power preparing to capture future opportunities in renewable and distribution areas while addressing challenges such as regulatory uncertainty, fuel cost, volatility and capital intensity what strategic levers
Bharani V
Will you be putting into place that we will see in the coming quarters that will help you to sustain the growth and keep the profitability stable? That’s my first question. I’ll ask my second question after this. Thank you.
Saurabh Mashruwala
So in terms of our investment plan as you know we have already announced investment plan of renewable we are including 4 giga capacity with 28,000 capex core also we 1.6 gigawatt with 23,000 crores capex pump storage 3 gigawatt we have investment plan about 14,000 crores distribution capex keep on happening every year is a gradual capex in all across all our distribution area and yearly we expect about 20002000 crores CAPEX at least for 5 years going forward and we are doing this Napa acquisition.
So in terms of CapEx plan we have very fairly good capex land and we are looking power sector per se is on an investment phase. Good opportunities are available, good projects are available so always we are ready to be and our balance sheet is very strong under leverage balance sheet so ample room is available to further investment also. So we are quite comfortable I would say in terms of our investment strategy.
Sumit Kishore
Thank you. My Second question to Mr. Rishi Shah is what improvements in financial reporting and analytics are being implemented to enhance the decision making and investor confidence? How do you see technology and automation contribute contributing to faster, more accurate financial operations in the coming quarters? Thank you.
Saurabh Mashruwala
So in terms of decision making and all those things as I explained my earlier remarks also that power sector is on investment phase, good opportunities are available for players like us and leverage ratio is also comfortable so. Demand is also going to be strong at least if you look at the last 10 years CAGR of the power demand is about 6% CAGR and same thing. We’ll see that the same momentum is continuing so and we will since we have a very balanced portfolio of license, distribution, franchise distribution in terms of generation we have a two part tariff available for our key projects basically key plants and we have some open capacity so all kind of levers available to demo to achieve a good performance I would say going forward.
Sumit Kishore
Thank you and best wishes
Saurabh Mashruwala
Thank you.
Operator
Thank you. Next question is from Sunny from Aventus Park. Please go ahead.
Bharani V
Yeah. Am I audible? This is Bharani from Aventus.
Operator
Yes.
Bharani V
So what is the adjusted EBITDA for 4Q FY26? Sir, given the adjustments that you will be making in the generation segment and in the transmission and distribution segment after you adjust for that what would be the adjusted EBITDA?
Saurabh Mashruwala
So for the quarter EBITDA report is 1220 crores and one off is 171 crores we have charged. So you have to add 171 crores in the reported EBITDA. That’s what the adjusted EBITDA for the current quarter.
Bharani V
Would we adjust even the 186 crores in the transmission distribution segment?
Saurabh Mashruwala
So that I see I explained that it’s basically normal. Since we are carrying regulatory asset it’s bound to happen that we are going to get the carry cost as and when on most of the orders coming in. So it’s a normal features. I would say it’s not may not be considered as a one off. That is what our take is. So it’s a normal features. It’s all I would say not only to us with all distribution customers because they are carrying a regulatory asset and they will approve the carrying cost every year.
Rishi Shah
So Balani, we are not considering that as a one off as Saurope explained.
Bharani V
Okay. When it comes to the generation segment when I’m adjusting for this 171 crores we reported the -39 crores. So the adjusted EBITDA comes to 132 crores plus side compared to 233 crores for FY25 same quarter that is the fourth quarter. So this drop you are telling is because of what reason sir that I missed.
Saurabh Mashruwala
So the first job is on account of the some scheduled maintenance in our gas based process during the course of the quarter which has cost us additionally and there was some reversal which made the last quarter of last year which is not the case current in the current quarter which has impacted the performance of the generation business.
Bharani V
Okay. And usually there is some LNG gain or merchant gain in this segment. I am assuming there is no such number in this particular quarter.
Saurabh Mashruwala
The Q4 is always a winter month. The winter quarter would be would be less merchant sale and LNG sales. So. So if you look at the both the quarter comparable quarter last year in the current quarter there are. There are. There were no material I would say gain to be reported. I would say some will gain will be there. But not material I would say which can be. We can talk about.
Bharani V
Okay. And one final clarification on this. You know Sujan power purchase cost which is resulting in this 171crore number. So is it because the regulator is yet to approve this 171 crores of extra cost incurred in F24.
Saurabh Mashruwala
So they have put a cap on the cost. Basically they up to certain amount they have approved. Beyond that they said the. The as of now they are not approving it but we will, we will similar situation we have had happened earlier also and in the last quarter in Q2 they have approved the. The. They have removed the cap and approved the full power purchase cost. So we expect that we will. We’ll file appeal and we’ll decision will come in our favor going forward.
Bharani V
Okay. And coming to the renewable segments EBITDA which is at 186 crores. This is flattish to even lower compared to last year same quarter despite capacity additions. So how should we read that?
Saurabh Mashruwala
Yeah, it’s a flattish number. Some reduction is there because of the GBI engine one of the project getting expired. This is getting over. So the. There is a. There is was a merely. This is because of the mainly reduction in the GBI income. So that is. That has impacted the EBIT of the current quarter.
Bharani V
Sorry, I didn’t get what is the GBI income
Saurabh Mashruwala
Generation based incentive which government gave for the renewable project for a certain period of time 7 to 10 years that has expired that facility that benefit was completed. So that was not available for the current quarter. That is that has effected the profitable renewal segment.
Bharani V
So when would we have NABA powers numbers getting consolidated?
Saurabh Mashruwala
We expect the month of June we will able to complete the transaction because currently the NABA LNT is in the process of complying the CP condition precedent so which once they had it will happen will consume the transaction before the current. In the current quarter
Bharani V
We
Saurabh Mashruwala
Expect the June numbers will with the Napa for a project.
Bharani V
Okay. That is one QFI 27 will have consolidation of Napa.
Saurabh Mashruwala
Yeah. That is what currently we expect.
Bharani V
Okay sir and final question is on our gas supply. If my understanding is right we have three cargoes from IOC and Reliance and three cargoes for the summer demand. And we also have that that Japan cargo that we have booked from calendar year FY27. So if my understanding is right. So with all these cargoes would we be able to first have the availability for Sujan assured for FY27 plus also generate power during the summertime in the next one year also
Saurabh Mashruwala
Your understanding is not right. I would say in terms of first point about the IOCL and the ONGCN Reliance gas it’s not a three cargoes IOCL car IOCL currently in the post measure because it was they were getting the gas for the Qatar which is the post measure. So nobody is getting that gas from the IOCL right now in terms of ONGC and the Reliance gas which is a domestic gas that it was as the government has pulled the cargoes hold all the gas to so that they can supply to the paratro sector requirement like CGD and the fertilizer kind of thing.
So power sector comes later so those gas is not available to the power sector so we are not getting the gas because the government has pulled the gas of villas and onc so that is not available. In terms of your second point about Z cargoes yes the two cargoes we have received one cargo is expect to get in month of June and any further requirement we can meet the spot purchase or make maybe short term contract we can able to do during the course of the balance period of the year. And in terms of cargoes coming in from the Japan and the BP basically we’ll keep on getting from the next onwards so that will continue.
Bharani V
So right now with the three cargoes that we are getting from summer demand we are meeting availability of Sujan and you know Sujan and also will be able to you know generate if required from for from Degen plant. If the understanding right sir.
Saurabh Mashruwala
So three cargoes we are is available for our distribution. We are optimizing our distribution requirement and supplying meeting the availability criteria. Any additional gas available through this optimization will be used for the merchant Merchant
Bharani V
And you mentioned in one of the replies that at 16 to $20 it’s difficult to make money in the merchant market. Just wondering given it will come to variable cost of around 910 rupees the high priced DM dam market will have merchant prices higher than that. So just wondering why would you say that?
Saurabh Mashruwala
We are not saying that it would be difficult. So what we are saying that on a RTC business it would be difficult but on the peak market which is our target market we are able to do something about the peak market not the RTC. Very simple. But
Rishi Shah
Baron, you can’t buy a cargo only for the peak market so you need some basic demand for RTC where you then book the cargo and then supply. So on a it is. It is not just peak market for which you buy a cargo so there are logistical issues also involved.
Saurabh Mashruwala
So with our P cargo we are optimizing the our all over all our demand requirement and then doing it.
Bharani V
So final two questions. With the Japan and BP cargo coming from next year, would we have enough comfort comfort for the full year instead of relying on this summer summer cargo? Will that be the right understanding?
Saurabh Mashruwala
Yeah, with J and N. Yes, some. And additionally we can always buy the spot cargoes or do the short term contract will be enough to demonstrate the availability for Susan and Uno. Susan.
Bharani V
Okay, pardon me, last question. On these three summer cargoes we said we got two. So does that mean that this is coming from the non Persian Gulf source?
Saurabh Mashruwala
Yes, you are right.
Bharani V
And the last, the last cargo that we are expecting in June would also be non Persian Gulf. So it may not be impacted. Is that understanding right?
Saurabh Mashruwala
Yes, you are right.
Bharani V
Okay, thank you so much and all the best.
Saurabh Mashruwala
Thank you so much. Thank you.
Operator
Thank you. Next question is from the line of Anujapadhya from Investec India. Please go ahead.
Anuj Upadhyay
Yeah, hi, thanks for the opportunity. Sir. So just one clarification on the CAPEX guidance issue mentioned. So roughly you mentioned it’s around 28,000 for renewables, 26 for whole and 14 was for the PHP. That takes the total to roughly 68 plus your normal distribution CAPEX to the tune of 1500 or 2000 per annum. That takes the total to 80,000 over period of 5 years. Is this a fair assumption? If we assume that annually that number could range in the range of 15 to 2026
Saurabh Mashruwala
Which is coal. You said 26,000 crores which is about 23,000 crores. Only one correction. Yeah,
Anuj Upadhyay
Yeah, yeah. 26,000 sir. So total 80,000 crores over next five years. Is that a fair assumption?
Saurabh Mashruwala
Yes, you can, you can take this, you can have assumptions. Yes, we are working with this kind of results.
Anuj Upadhyay
Okay. And I know like if you guys just want to phrase it out, I believe probably you know, second or third year onward it would be heavy capex depending upon the milestone which we are achieving on the construction phase. So any. Okay, okay, fair enough sir. And secondly sir, on the connectivity part, so can you, you know just mention how the connectivities are placed for the upcoming renewable projects?
Saurabh Mashruwala
Connectivity in most of the projects are in place right now. So connectivity is not the issue but upcoming transmission line which has to come in on time so that we can execute our implement all our renewable projects on time as per the expected schedule. I would say so. Otherwise connectivity is not an issue for our renewable projects available for the almost most of the project. I would say
Anuj Upadhyay
Okay sir. And lastly on any development on the parallel licensing.
Saurabh Mashruwala
No further development at this moment.
Anuj Upadhyay
Thank you sir. That’s all from my end.
Saurabh Mashruwala
Thank you so much.
Operator
Thank you. Next question is from line of Shayram Kapoor from Jefferies India. Please go ahead.
Unidentified Participant
Hi sir. Thanks for the opportunity. Just had a question on your merchant LNG gain. So you said of course 4Q was not material but for the full year could you maybe quantify how much was the overall gain during the year and how many merchant units were sold
Rishi Shah
So we don’t bifurcate it between LNG sales and merchant. If I look at the total gains from both of them it would be around 675 crores for the full year. In terms of units, what we sold it would be around 1400 MU.
Unidentified Participant
Got it sir. And just to understand on your Nabha power acquisition, so could you, you know this is 6900 crores acquisition. How much would be the debt component and equity component? Do you have a sense of a rough split? And secondly, you know how much of this could. A second question on Nabha would be how much of this you know would add to your fixed asset base going ahead. And thirdly, what are the tariffs you’re looking at in NABA power on that plant?
Saurabh Mashruwala
So it’s acquisition. Enterprise value as we announced is about 6800 crores. And equity value, equity value we have about 3400 crores date. The balance is the equity value. The plan to raise about close to 3,005 to 4,000 crores for funding of the projects and tariff will be as the two part tariff. Basically so variable cost is passed through. That is what the business model of NABA is.
Unidentified Participant
Would you able to share you know what kind of tariffs we are expecting at least on the fixed side.
Saurabh Mashruwala
We don’t have information available right now but we can share the information offline.
Unidentified Participant
Okay, understood sir. Thank you so much.
Saurabh Mashruwala
Thank you.
Operator
Thank you. Next question is from the line of Dhruv Muchal from HDFC amc. Please go ahead.
Dhruv Muchhal
Yes sir. Thank you so much. So a few questions on the renewable pipeline. So the MSCDCL project, when should we expect the COD?
Saurabh Mashruwala
So in fact out of 367 megawatts most of the capacity we have commissioned, some capacity is not commissioned because of the locations of the land which we have got it from the government is not ideally suitable. So we have asked for the replacement and from the government it’s a basically lease land which was provided by government. So we expect the replacement of the government and we expect next six to Nine months. I think it should get commission
Dhruv Muchhal
So you can do partial billing for the portion of the capacity that you have commissioned.
Saurabh Mashruwala
Commission. We have started billing. So non commissioning is a government issue because there’s a scattered project, it’s located various locations. Project is we have made a solar project in natic area. So once that issue is sorted out, in fact the whatever capability we are commission, we have started the billing also.
Dhruv Muchhal
And sir, for the SECI 12 project, COD
Saurabh Mashruwala
We have mentioned
Rishi Shah
So we have applied for extension there. It will take some time.
Dhruv Muchhal
So should I expect say sometime in FY 2720 or 2827.
Rishi Shah
I think before March 27th will get.
Dhruv Muchhal
And so are you still going ahead with the Merchant Power 600 megawatt merchant project or are there any changes?
Rishi Shah
So we are doing that project. So but through if you recollect our past interactions, what we have said is that all these merchant right now is merchant. We are commissioning those capacities. But as and when going forward we win any tenders or bids, we will be allocating that to those bids. So effectively it may not remain merchant for the life of the project.
Dhruv Muchhal
Yeah, but you go ahead with the. With the project construction and everything. Yeah,
Bharani V
Yes.
Dhruv Muchhal
And lastly we have seen that a lot of developers are doing is the, you know, switch to batteries because you also have a lot of FDRE projects and hybrid projects. So any configuration changes in your projects and any cost, you know, reduction or probably improvement in IRRs that you are seeing
Rishi Shah
Not as of now, I think most of the projects have a small battery. So some of our projects which are hybrid or RTC projects, they have battery component already built in. But these are not very large. So there will not be a significant shift in cost.
Dhruv Muchhal
Okay, sure. Okay, perfect. Thank you so much and all the best. Thanks.
Rishi Shah
Thank
Mohit Kumar
You.
Operator
Thank you. Next follow up question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yes, sir. Thanks for the opportunity once again so few clarification. One is did you used to book generation based incentive for the RE mainly in the fourth quarter. Is that understanding right?
Rishi Shah
No, it was. It was across
Saurabh Mashruwala
Every quarter.
Mohit Kumar
Understood. Second question
Saurabh Mashruwala
One of the project, the time period and the amount was used basically so that is why discontinued from the last quarter onwards. Last quarter onwards.
Mohit Kumar
As a given the wind heavy portfolio, how do you see the impact of the dsm the new regulation? And can you please help us with the current status of the new regulation?
Saurabh Mashruwala
It’s not a work was not a wind heavy. I would say it’s a balanced portfolio. If you look at the 4 GHz capacities we are commissioning almost. So 50% is coming from the wind, 50% is coming from the solar. It’s not a wind heavy portfolio. I would say
Mohit Kumar
Existing portfolio.
Saurabh Mashruwala
Sorry,
Mohit Kumar
Existing portfolio has. How do you see the impact of this? Do you see the
Saurabh Mashruwala
60, 60% wind, 40% solar here? Yeah, some impact is there in terms of plf. I would.
Mohit Kumar
Under submit take it offline. My third question is the are you seeing the incremental opportunity thermal bidding opportunity for the states and are we looking to bid for it?
Saurabh Mashruwala
Yeah, there are a couple of states contemplating of announcing the thermal capacity. So we are actively looking at it.
Mohit Kumar
Understood. My my last question on the merchant capacity which you spoke about on the RE side is there any configuration between the solar and wind you’re looking at and are you also looking to add battery and battery to that to ensure that you get a higher tariff?
Saurabh Mashruwala
So if you look at our profile of our bidding pattern of last two years I would say we are more inclined towards a complex project like hybrid project or RTC Panama project. That is what we are focusing more on those kind of projects so that we can get.
Mohit Kumar
My question was the merchant capacity of 6.03megawatt peak which you have mentioned in the PPD. Are you looking at wind and solar and are you looking to add also battery in this?
Rishi Shah
So Mohit, if you look at my 603 megawatts it would, it would be slightly higher on the, on the wind side out of the and there is some solar right now we are not contemplating it, contemplating any battery usage there going forward if we feel that it is required we may add on but as of now we are not adding any battery because it is more of wind which is typically non solar hours and where you can get better returns.
Mohit Kumar
Understood sir. Thank you. Thank you.
Rishi Shah
Thank you.
Operator
Thank you very much. Next question is from line of Neel Otswal from PGIM India. Please go ahead.
Unidentified Participant
Yeah hi sir, thank you for the opportunity. Sir, do you have any current capacities tied up on the C and I side? Do you plan to tie up future, significant future capacity on the C and I side and what is your view on the C and I segment?
Rishi Shah
So I think Neil, we currently have around 860 megawatts of C& D projects under construction. Construction. We keep on looking at tying up tying up C and I with C and I consumers as and when they are available. So we are open of tying up additional capacities. But as of now we have 860megawatts of C& I projects under construction.
Unidentified Participant
Understood sir. All right, thank you.
Rishi Shah
Thank you.
Operator
Thank you. Next follow up question is online of Aditya Birla. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Operator
Yes.
Unidentified Participant
So I just wanted to understand how you are thinking about your gas fired plant business in the long term given that LNG as a fuel has proven expensive for India and that’s where. That’s one of the reason why we have seen Indian plants running at 15, 20% PLF. And also there, there was an impending global gas glut that was expected to come in the in 2027 due to increased liquefaction capacity and due to Iran war that has also been pushed forward. So I just wanted to understand what kind of PLFs do you are you expecting over long run?
Thank you.
Saurabh Mashruwala
So basically you are right, there’s a gas glut is coming in. Basically lots of gas is going to flow in. Maybe because of the Iran war some pushback will be there. In terms of timing I would say not in terms of availability going forward. Otherwise we don’t see any change in the situation. Expect some timing will be delayed. I would say more guests will be flow I would say so in terms of PLF it would be difficult to predict the plf. But yes, availability may not be the issue going forward price. So one has to monitor the price and then take your calls.
Rishi Shah
And the other thing is if you look at our portfolio, around 50% of our portfolio of gas based power plan we have tied up long term ppl with our own discounts. So there we are getting fixed cost recovery on the availability basis. That should not be an issue as far as merchant capacities are concerned. We we take the benefit of short term pricing mismatches. This year it was. This year it was. It is slightly constrained because of lng a very high cost of lng. But if you look at last four to five years we have been able to make decent profits out of this merchant capacities which we have.
So our expectation going forward is once all this subsides India as a market demand should improve and there will always be a deficit of power going forward forward which will allow us to take benefit from our merchant capacities. That is the expectation right now.
Unidentified Participant
Okay sir. Thank you sir.
Operator
Thank you. Next question is from line of Sunny from Amendus Park. Please go ahead.
Bharani V
Yeah, I just forgot to ask one question. After June of this year, what is the source of gas we will have to show availability at Sujal and Eurosujan.
Saurabh Mashruwala
It’s a basically short term, short term we have to buy from the short term market basically for on the spot is in the short term. We are doing the short term contracts.
Bharani V
So gas is
Saurabh Mashruwala
Available. Gas is available. Gas is not the issue. Basically at what price we are getting gas.
Rishi Shah
I think. I think the question is the price, not availability of gas. So for demonstrating availability, we can. Gas is amply available. Now whether discom is willing to take that gas and use that electricity at high rates or they are able to manage it from buying it from the merchant market, that balancing will have to be done. So as far as availability of plant is concerned, there is no shortage of gas. It is only the price which is higher.
Bharani V
Sure. When you say spot, it would be, you know, gas from igxc, something like that, or
Rishi Shah
Spot cargoes. What is trying to say spot cargoes. Right now domestic gas is not available as government has pulled everything. So we have to import the gas.
Bharani V
Understood. So hence, you know, when the tenders are invited, you would be able to get it in the short notice.
Rishi Shah
Which sort of tenders.
Bharani V
The spot cargo.
Rishi Shah
Yeah. So we keep on doing. If you are procuring cargo, we generally do. We float a tender in the international market and then we. We bid it out.
Bharani V
Understood. Okay, that’s. That’s it from my side.
Operator
Thank you. As there are no further questions, I’ll now hand the conference over to Mr. Sourav Mashrawala for closing comments.
Saurabh Mashruwala
Thank you everybody for joining Torrent for warning calls. We wish everybody to stay safe and healthy. Thank you so much.
Operator
Thank you very much 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.