Jefferies maintains a buy rating on Torrent Power, raising its target price to Rs 1,780 amid aggressive renewable projects and significant pumped storage development, signalling strong growth prospects despite short-term hurdles.
Jefferies has kept a “buy” view on Torrent Power and lifted its target price to Rs 1,780, a level that implies roughly 40 per cent upside from the stock’s recent close. The call has drawn attention to the utility because it comes as the company is pushing harder into renewable power and long-duration storage, even as near-term execution issues continue to affect some project timelines.
Torrent Power, which operates across generation, transmission and distribution, said in recent filings that it is building a broader clean-energy platform alongside its conventional thermal business. Reuters-style broker analysis is not available here, but the brokerage case centres on the same theme: renewable earnings are expected to grow faster than the wider business, helped by a pipeline that includes solar, wind and pumped storage projects.
The most closely watched part of that pipeline is pumped storage. Jefferies said Torrent Power plans to add about 3 GW of such capacity by FY29, and that these projects are not fully reflected in its forecasts. Business Upturn noted that pumped storage can support the grid by storing power when it is cheap and releasing it when demand and prices are higher, which could give the company another earnings driver if the programme advances as planned.
Company disclosures and other recent reports suggest the build-out is already substantial. Torrent Power said its operational generation portfolio stood at 5.1 GWp at the end of FY26, with clean and green energy accounting for about 82 per cent of total capacity. Power Peak Digest reported that around 4 GWp of renewable projects were under construction and 3 GW of pumped storage projects were under development, backed by planned investment of about Rs 27,830 crore for renewable expansion.
The company’s latest quarterly numbers were mixed. Revenue from operations rose to Rs 8,124 crore in the first quarter of FY27 from Rs 7,906 crore a year earlier, but net profit slipped to Rs 662 crore from Rs 742 crore. Compared with the previous quarter, however, profit recovered sharply from Rs 331 crore. Torrent Power also reported a return on capital employed of 13.7 per cent, return on equity of 12.5 per cent and a debt-to-equity ratio of 0.73, suggesting moderate leverage as it funds its expansion.
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