Earnings Update: Torrent Power Limited Beat Earnings And Now Analysts Have New Forecasts For This Year

Torrent Power Limited (NSE:TORNTPOWER) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 5.3% to hit ₹79b. Statutory earnings per share (EPS) came in at ₹14.36, some 6.2% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Torrent Power's ten analysts is for revenues of ₹317.6b in 2026. This would reflect a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are expected to shrink 6.5% to ₹55.46 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹315.9b and earnings per share (EPS) of ₹53.02 in 2026. So the consensus seems to have become somewhat more optimistic on Torrent Power's earnings potential following these results.

See our latest analysis for Torrent Power

The consensus price target was unchanged at ₹1,406, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Torrent Power analyst has a price target of ₹1,636 per share, while the most pessimistic values it at ₹1,085. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Torrent Power shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Torrent Power's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Torrent Power'shistorical trends, as the 22% annualised revenue growth to the end of 2026 is roughly in line with the 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Torrent Power is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Torrent Power's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹1,406, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Torrent Power going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Torrent Power that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.