Torrent Power will acquire 100% stake in Nabha Power for ₹6,889 crore—adding a fully contracted thermal power asset with strong revenues and stable cash flows.
The deal will raise Torrent's total operational capacity from around 5 GW to 6.4 GW, while also bringing technical expertise and expansion potential in a power-deficit northern region.
Torrent expects immediate gains in revenue and profitability with low execution risk, while L&T said the sale aligns with its strategy to unlock value and focus on core businesses.
Torrent Power to Acquire L&T Subsidiary Nabha Power for ₹6,900 Cr
Upon completion of the acquisition, Torrent's operational capacity will increase from 5 GW to 6.4 GW. In addition, Torrent will gain Nabha Power's institutional expertise and decade-long technical capabilities, developed through exceptional implementation and operational excellence
Torrent Power Acquires L&T Subsidiary Nabha Power for ₹6,900 Cr
Summary
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Torrent Power has entered into a definitive agreement to acquire 100% of equity stake and convertible instruments in Nabha Power for ₹6,889 crore. Notably, Nabha Power is the wholly-owned subsidiary of Larsen & Toubro (L&T) Power.
Nabha Power is a fully contracted thermal power asset with revenue of ₹4,866 crore and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of ₹1,153 crores in financial year 2024-25 (FY2025). The supercritical plant, built on advanced Japanese technology, maintains sustained availability levels above 90%.
"Strategically located in a power-deficit region, the plant also supports potential ancillary revenue streams. Furthermore, existing infrastructure allows for seamless expansion of capacity, supporting future growth opportunities," Torrent said.
Upon completion of the acquisition, Torrent's operational capacity will increase from 5 gigawatt (GW) to 6.4 GW. In addition, Torrent will gain Nabha Power's institutional expertise and decade-long technical capabilities, developed through exceptional implementation and operational excellence.
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"This acquisition creates valuable synergies that will strengthen Torrent’s greenfield thermal power development strategy," the company further said.
Samir Mehta, Chairman of Torrent, said the acquisition marks the company's entry into the fast-growing power market of northern India. He explained that once the deal is completed, Nabha Power will become a strong and high-quality addition to Torrent's portfolio.
Mehta added that the acquisition will start contributing to the company’s revenue and profits from day one. According to him, Torrent's experience in operating and managing power assets will help improve efficiency further and increase the scale of its power business. He highlighted that this deal is particularly attractive because it does not involve the risks typically associated with building a new project from scratch—such as construction delays or cost overruns—since the plant is already operational.
"Importantly, the transaction expands our footprint without introducing development or execution risk and further enhances portfolio diversification while remaining firmly aligned with our disciplined approach to growth, prudent capital allocation, and balance-sheet resilience," he further said.
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S N Subrahmanyan, Chairman and MD of L&T, said the sale of Nabha Power fits with L&T's strategy of unlocking value from non-core assets and sharpening its focus on its main businesses. He added that this decision will help the company create long-term value for all stakeholders, including shareholders, business partners, and employees.