Torrent Power Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Torrent Power Limited (NSE:TORNTPOWER) shareholders, because the company has just released its latest full-year results, and the shares gained 5.2% to ₹1,443. Revenues were ₹292b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹61.23, an impressive 24% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Our free stock report includes 2 warning signs investors should be aware of before investing in Torrent Power. Read for free now.

Taking into account the latest results, the most recent consensus for Torrent Power from nine analysts is for revenues of ₹318.7b in 2026. If met, it would imply a notable 9.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to reduce 8.2% to ₹54.42 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹320.8b and earnings per share (EPS) of ₹53.96 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Torrent Power

The analysts reconfirmed their price target of ₹1,352, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Torrent Power at ₹1,563 per share, while the most bearish prices it at ₹1,050. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Torrent Power's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.3% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. Compare this to the 12 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it looks like Torrent Power is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Torrent Power , and understanding these should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.