Torrent Power Limited (TORNTPOWER.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-69.0%

₹371.34

vs ₹1,199.10 price

Levered DCF

-₹136.88

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

—

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	27.23×	24.47×	37.3×	11.58×	52.05×	15.78×	11.42×	14.11×
P/B	3.45×	4.15×	5.67×	2.23×	2.38×	2×	1.47×	1.41×
P/S	2.27×	2.54×	2.54×	0.97×	1.68×	1.7×	1×	0.98×
EV / EBITDA	13.47×	14.16×	16.33×	6.8×	12.92×	7.8×	8.18×	6.59×
Gross margin	20.9%	22.0%	20.2%	21.6%	30.2%	35.3%	50.6%	44.8%
Operating margin	13.6%	13.3%	12.0%	13.9%	16.6%	18.8%	16.9%	15.4%
Net margin	8.3%	10.4%	6.8%	8.3%	3.2%	10.7%	8.7%	6.9%
Current ratio	0.95×	1.14×	1.09×	1.08×	0.85×	0.97×	1.02×	1.1×
Debt / equity	0.73×	0.5×	0.96×	0.96×	0.92×	0.77×	0.97×	1.08×
Interest coverage	4.2×	4.25×	3.92×	4.76×	3.71×	2.93×	2.61×	2.38×
Dividend yield	1.6%	1.2%	1.1%	4.3%	3.0%	1.3%	7.2%	2.3%
Payout ratio	42.3%	30.2%	42.1%	50.1%	154.6%	20.8%	82.5%	32.5%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	12.7%	17.0%	15.2%	19.2%	4.6%	12.7%	12.8%	10.0%
Return on invested capital	7.8%	11.9%	8.7%	10.2%	9.1%	9.5%	11.4%	6.6%
Return on assets	5.3%	8.2%	5.5%	7.1%	1.8%	5.5%	5.0%	3.7%
Free cash flow yield	-4.8%	0.6%	0.9%	2.6%	5.7%	8.3%	16.8%	3.4%
Earnings yield	3.7%	4.1%	2.7%	8.6%	1.9%	6.3%	8.8%	7.1%
Enterprise value	₹790.1B	₹816.5B	₹796.5B	₹348.8B	₹324.9B	₹280.8B	₹222.3B	₹222.8B
Net debt / EBITDA	2.25×	1.48×	2.31×	2.02×	3.52×	2.14×	3.24×	2.84×
Cash conversion cycle (days)	7	11	67	57	74	71	60	69