Ahmedabad-based Torrent Power Ltd has signed a definitive agreement with L&T Power Development Ltd, a wholly owned subsidiary of Larsen & Toubro, to acquire 100% equity and convertible instruments of Nabha Power Ltd at an enterprise value of ₹6,889 crore. The transaction is subject to regulatory approvals and customary closing conditions.
Nabha Power operates a fully contracted thermal power asset that reported revenue of ₹4,866 crore and an adjusted EBITDA of ₹1,153 crore in FY2025. The supercritical plant, built using advanced Japanese technology, maintains availability levels above 90% and is located in a power-deficit region, offering potential for additional revenue opportunities. The existing infrastructure also allows for future capacity expansion.
Upon completion of the acquisition, Torrent Power’s operational capacity is expected to increase from around 5 GW to about 6.4 GW. The company is also expected to benefit from Nabha Power’s decade-long operational experience and technical capabilities, creating synergies that support Torrent’s thermal power expansion strategy.
Torrent Power Chairman Samir Mehta said the acquisition marks the company’s entry into the fast-growing northern India power market and will add a high-quality, fully contracted operating asset to its portfolio. He noted that the deal is expected to enhance revenue, profitability, operational efficiency, and cash-flow stability while expanding the company’s footprint without development or execution risks.
L&T Chairman and Managing Director S. N. Subrahmanyan said the divestment aligns with the group’s strategy to unlock value and strengthen its core businesses while delivering long-term benefits to stakeholders.
Nabha Power owns and operates a 1,400 MW (2×700 MW) supercritical coal-based thermal power plant at Rajpura in Punjab’s Patiala district. Commissioned in 2014 under the Government of India’s Case II competitive bidding framework, the project operates under a 25-year power purchase agreement and has long-term fuel supply tie-ups, along with provisions for alternate coal sourcing and the flexibility to blend domestic and imported coal. The plant has consistently maintained strong operational performance, recording high availability and load factor levels, placing it among the country’s top-performing thermal power stations.