Torrent Power stock in focus after signing 10 year LNG deal with Japan’s JERA

SYNOPSIS: Torrent Power signed a 10-year LNG supply agreement with Japan’s JERA to fuel its gas-based power plants and CGD network, strengthening energy security and supporting India’s push toward a cleaner, gas-based energy mix.

Shares of one of the largest companies in the country’s power sector, with presence across the entire power value chain – generation, transmission and distribution are in focus on the stock exchanges on Monday, after signing a 10-year agreement with JERA Co., Inc., Japan’s largest power generation company.

At 02:40 p.m., shares of Torrent Power Limited were trading in red at Rs. 1,246 on BSE, down by around 3 percent, compared to its previous closing price of Rs. 1,284.5, with a market cap of Rs. 62,786 crores. The stock has delivered negative returns of more than 24 percent in one year, and has fallen by nearly 5 percent in the last one month.

What’s the News:

According to the latest disclosures filed with the stock exchanges, Torrent Power Limited (TPL) has entered into a long-term Sale and Purchase Agreement (SPA) with JERA Co., Inc., Japan’s largest power generation company and a global leader across the LNG value chain. Under this agreement, JERA will supply up to 0.27 MMTPA of LNG to Torrent Power for a period of 10 years, beginning in 2027.

The LNG secured through this agreement will be strategically utilised by TPL. It will be used to operate the company’s 2,730 MW combined cycle Gas-Based Power Plants (GBPPs) across India, helping meet the country’s rising power demand, manage peak load requirements, and support renewable energy balancing. Additionally, the arrangement will cater to the growing LNG needs of Torrent Gas Ltd. (TGL), the Torrent Group’s City Gas Distribution (CGD) business, ensuring reliable gas availability for households, commercial and industrial customers, and CNG vehicles.

This long-term partnership marks a significant strategic step for Torrent, reinforcing its commitment to clean energy and enabling access to competitively priced LNG for sustained power generation and gas distribution. It aligns with the Government of India’s vision to increase natural gas’s share in the national energy mix to around 15% by 2030 while strengthening the country’s overall energy security.

Capitalising on the current softness in global LNG prices, TPL and TGL also intend to explore additional medium- and long-term LNG procurement opportunities. This approach aims to diversify their energy portfolio, support growing demand across GBPPs and CGD networks, and ensure a reliable and efficient energy supply for customers.

Financials & More:

Torrent Power reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 10 percent, from Rs. 7,176 crores in Q2 FY25 to Rs. 7,876 crores in Q2 FY26.

Likewise, the company’s net profit increased during the same period, from Rs. 496 crores to Rs. 742 crores, reflecting a rise of around 50 percent YoY. Torrent Power Limited, the Rs. 29,165 crores integrated power utility of about Rs. 45,000 crores Torrent Group, is engaged in the business of generation, renewables, transmission and distribution of electricity.

The company has an aggregate installed generation capacity of 4.96 GWp, comprising 2.73 GW of gas-based capacity, 1.87 GWp of renewable capacity and 362 MW of coal-based capacity. Further, Renewable projects of ~3.6 GWp, Pump Storage Capacity of 3 GW and coal-based power capacity of 1.6 GW are under development. Total generation and Pumped Storage capacity, including projects under development, is ~10.16 GWp and 3 GW, respectively.

Written by Shivani Singh

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