Ladies and gentlemen, good day and welcome to Torrent Power Limited Q1 FY26 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Saurabh Mashruwala, Executive Director and CFO. Thank you, and over to you, sir. Thank you so much. Good evening to all of you, and thank you for joining Torrent Power's earnings call for Q1 FY26. First, I will take you through the performance of the quarter, after which phone lines will be open for question and answer session. We'll explain the performance of the company at PBT level. First, reported PBT for the quarter stood at INR 985 crores as compared to INR 1,315 crores in its corresponding quarter last year. Decrease of INR 329 crores, decrease by INR 329 crores, a reduction of 25% on a reported basis. PBT for the quarter includes non-recurring loss of INR 59 crores on account of non-cash adjustment due to foreign exchange fluctuations. PBT for the corresponding quarter of last year includes non-recurring credit of INR 102 crores on account of receipt of favorable tariff order of our licensed distribution area, which primarily includes carrying costs and allowances. Adjusted for about non-recurring items, the adjusted PBT for the quarter stood at 144 crores as compared to 1,213 crores in comparable quarter of last year, which is lower by about 169 crores, a reduction of 14%. Company's underlying business remained resilient. However, the company quarter was mainly impacted by lower merchant gain, partially offset by improvement in the other businesses on account of positive operational parameters. Company remained well-positioned to navigate cyclical variations supported by the diversified business operations. The business-wise key factors contributing to the performance are as follows. There are four factors which I will explain to you. First, reduction in gain from sale of merchant power as well as LNG of 333 crores. Demand of the power remained subdued due to early onset of the monsoon. Further, LNG price remained elevated, impacting the sales of merchant gas with capacity of 1.5 gigawatts. Overall, PLF for the thermal generation deteriorated from 60% in Q1 of FY25 to 39% in Q1 of FY26 due to lower long-term as well as merchant sales. Second, improved contribution from distribution business by INR 82 crores, mainly on account of two factors. First, improvement in operational parameters like lower distribution losses and higher collection efficiencies. Second, additionally, contribution from the licensed business was also supported by the increase in ROE as well as ROCE on account of capitalization of assets, as well as higher rate of returns on equity, as well as new tariff regulations. Third, contribution from renewable business improved by INR 31 crores mainly on account of interest income on delayed payment under LPS scheme. Higher PLF partially offset by lower contribution from new solar project of 300 megawatts of TPLD as well as MSKVY. Fourth, lower interest expenses of INR 547 crores on account of repayment of debts from the QIP proceeds due to QIP proceeds. This completes the explanation of the financial performance during the quarter. Moving on, we'll now give the brief update on the pipeline projects. During the quarter, the company successfully secured a contract under SECI 18, tying of 300 megawatts merchant capacity at a competitive rate of INR 3.97 per unit. With progressive commissioning of 360 megawatts MSEDCL project, aggregate installed generation capacity of the company stood at 4.9 gigawatts as of 30th June 2025, comprising of 2.7 gigawatts of gas, 1.8 gigawatts of renewable capacity, and 362 megawatts of coal-based capacity. Pipeline projects at the end of the quarter include 3.1 gigawatts of renewable projects, three gigawatts of pumped storage projects, two transmission projects of Khavda as well as Solapur. Further details on the pipeline project have been summarized on our latest investor presentation available on the website. I would now request coordinator to open the line for Q&A session. We wish everybody to stay safe and healthy. Thank you so much. Handing over to the operators. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Hi. Good evening, sir, and thanks for the opportunity. My first question is, of course, this quarter we are impacted by the lower merchant prices and lower offtake for the gas-based power plant. Is it fair to say that we are guaranteed a certain amount of payment for the till October under the existing PPA? So the Q2 should be better compared to last year. Is that a fair assumption? So see, the quarter is being impacted mainly by the merchant sales because of the early onset of monsoon as well as elevated gas price. So our NVVN tender, which is operational for 15th of March and will be continued till October, 15th of October. So it will be split into two quarters. So whatever supply has not happened under NVVN tender will going to happen going forward in Q2. Possibly something may spill over to Q3 also. Understood, sir. Second question is on the RE portfolio. Is it possible to spell out the CapEx which you've done for the Q1? Q1. The Q1 CapEx is about INR 350 crores. How does that typically progress in the balance year? Balance, there is a plan. We have a plan. So we have planned to have about 500-700 megawatt capacity coming in. So progressively we'll increase the CapEx for the RE portfolios. Any broad number for fiscal year 2026 and 2027, sir? Is it possible to share? Sorry? Is it possible to share the broad CapEx number for expected number for FY26 and FY27 for RE? So for 26, it should be around INR 7,000-8,000 crores for this year and slightly higher number for next year. Understood, sir. Thank you. That's very helpful. Thank you. Thank you. The next question is from the line of Satyadeep Jain from Ambit Capital. Please go ahead. Hi. Thank you. So first, on the merchant EBITDA for the quarter, just want to understand the PLF was low, but under the NVVN tender, you have minimum guaranteed offtake. So was there some EBITDA contribution this quarter from take or pay where, even if NVVN doesn't lift, you are guaranteed fixed cost on whatever is not lifted? Just wanted to understand, was there some contribution from there in this quarter? The contribution from merchant is there, definitely, because of the NVVN. They have lifted some portion, but it will be whatever is a guaranteed thing is going to happen next quarter as well as something spillover will happen in the Q3 also. So minimum guaranteed quantity is going to happen. Just trying to understand, there will be some guaranteed offtake every day. I think last time we were trying to understand, what I understood was if they don't lift the minimum guaranteed offtake, which would be 2,300 MU, they will not pay you the entire tariff, but you will be guaranteed at least a fixed cost. So just trying to understand this quarter. So Satyadeep, I think what you're trying to understand is that this quarter, what was the minimum guaranteed offtake and correspondingly what was the realization from that. So basically, this tender is for till October, right? So the guaranteed offtake they have to take is till October. Now, it is not split into every day demand. So if, let's say, on a particular day, if the demand is not there, they may not commission or they may not ask you to provide power. It can spill over to a different day. So basically, what we are saying is that there was some offtake under the NVVN tender, and the expectation is that minimum guaranteed offtake will be taken by NVVN going forward progressively. There is a possibility that some guaranteed offtake may also get spilled over from October to the next quarter also. Because my understanding in the tender was there are specific crunch days, 111, and during those crunch days, there's a minimum PLF of 50% during non-peak and 100% during peak. So accounting-wise, I thought whenever they're not meeting within this quarter also, you would have booked some fixed cost recovery, but that. No, no. We book based on the sales which happens, right? And what you're saying should be true in case when the period expires and they have not offtaken the minimum guaranteed. Then we'll have to see whether we want to account that for or not. But as of now, whatever we have booked is based on the offtake which they have done. Based on the actual offtake they have done. Okay. Not based on some estimated number, but based on the actual offtake, we have booked the revenues and contributions. Very nice. Just one thing I noticed in the presentation, some merchant wind capacity you had. Seems like you've transitioned that into SECI 18. What is the rationale? Because earlier, you were thinking of keeping some merchant wind in the portfolio. It seems to have been toned down. Is that true, and what is the rationale for that? So we have two merchant projects, in fact, developing. So we got this SECI 18 tender. So we have shifted the tariff was INR 3.97, which is quite good, I would say. So we have shifted this merchant capacity to SECI 18 tenders. So that is what the objective. Because tariff was good, INR 3.97 in the SECI 18 tenders. So better to switch over this merchant capacity to SECI and lock in a better tariff. And we will develop further merchant capacity going forward also. Just one quick question if I can squeeze another one. On the parallel licensing, I think there is some news report indicating some CapEx opportunity in Nagpur. I think there is some hearing. Just wanted to understand the steps in that process right now, and I think the news reports indicate maybe PAT losses for the first four years. Just wanted to understand why is that? I'm not sure if it was misquoted or something. If that is, why should there be PAT losses in the first four years? Maybe can you talk about this opportunity, these steps, and I'm not sure whatever the media reports are. Just wanted to understand your thoughts there. So we can't comment on the media report, but the fact of the matter is that today, in fact, today is the public hearing happened in Mumbai, organized by the MSEB. So that happened today. Now, they have reserved the orders now. So it will be published, going to be announced in a couple of days, I would say, and then we will come to know the exact status about the parallel licensing. The public hearing took place today in Mumbai. So the results of the public hearing will be announced in two days. What are the steps after that? A couple of days. Not two days. A couple of days. They will reserve the order whether to allocate to give the circle to Torrent Power or not, based on the public hearing. Okay, so within a couple of days or so, we should find out, you see. Yeah. That is what we expect the MERC, Maharashtra State Regulatory Commission, will announce the result. This will be for all the three, right? Pune, Nagpur, all the three areas. Yes, all the three areas. Okay. All right. Thank you so much. Thank you. The next question is from the line of Sumit Kishore from Axis Capital. Please go ahead. Thank you. Could you give us a sense of what is the total sale of merchant units in Q1 and what was your merchant contribution from gas-based power plants in the first quarter of the year? Our sense last year was that in Q1 last year, you had realized almost INR 6 million of merchant gain. It was a merchant sale of about 714 MUs this quarter. 714? 714 MUs, including the NVVN tender also. Contribution was about ₹327 crores. Got it. This is very clear. The second question is, sorry? Yeah. No, you go ahead. Yeah. The second question is, I think you mentioned to a previous participant that Q1 CapEx was INR 3.5 billion only. I thought that your. 350 crores for the renewable only. Overall CapEx is about INR 850 crores, but the renewable CapEx was INR 350. So company-level CapEx was INR 850 crores. Out of this, renewable was INR 350. Okay. Just to understand, given the numbers that we are looking at on an annual basis are north of INR 70-INR 80 billion, so is there any reason why Q1 CapEx in renewable is so low, or how should we read this sort of number? It seems quite low. Yeah. It will be ramp up in the Q2, H2, I would say, significantly as compared with H1. Okay. And in addition to the two gigawatt Maharashtra PSP, now the total PSP that you are showing is three gigawatt. So. 2 gigawatt is a tied-up MSEDCL. And 1 gigawatt we are planning on a merchant basis, which will be tied up at some point of time. But as of now, we are developing 3 gigawatt capacity, PSP capacity. Okay, so that one gigawatt merchant is at the same location? Yeah, same location. Because location is a 3-gigawatt capacity. Out of this, 2 gigawatt we have tied up the MSEDCL. Got it. Got it. Those were my questions. Thank you. Thank you. Thank you. The next question is from the line of Suyash Jain from NDTV Profit. Please go ahead. Mr. Suyesh, are you there? Sir? As there is no response from the participant, we move to the next one. The next one. The next participant is Ketan Jain from Avendus Spark. Please go ahead. Thank you. Sir, just to follow up on the previous question, you said your EBITDA contribution from merchant was around INR 327 crores. Does this include the LNG sale also? LNG sale. So basically, when we say merchant, it includes LNG and MU sales also. Both. Both. Ajah. Okay. Sir, any number? What is the comparable number for same for previous quarter, previous year? It's basically we don't give the breakup. It's interchangeable depending on the opportunity available between merchant and. Okay. Just a comparable number for first quarter, FY25, for the same INR 327 crores? Yeah. We have seen INR 660 crores for the last year number. 660 crores. Okay. Thank you. Sir, my next question is on what would be your average realization for this quarter, sir? Realization and EBITDA for this quarter, average realization for the 700 MUs which we sold. So we have seen that 714 MUs we have sold in the merchant market and contribution of INR 327 crores. Around INR 450. INR 450. Around INR 450. Okay, sir. So just last question is on, we read a news report or media report on your company interested to look at L&T's power asset. Any comments on that, sir? No, we don't want to give comment on this. We don't want to give any comments on this at this moment. But are we looking at thermal assets? Are we always looking at thermal assets on a regular strategy basis? It's a part of our strategy. Yes, we look at the thermal and coal asset also, developing coal asset or participating in the IBC process also. It's a continuous exercise. We develop most of the acquisitions in the renewable side also, in the coal side also. Understood. Thank you. Thank you for your response. Thank you. Before we take the next participant, we would like to remind the participants to press star and one to ask a question. The next question is from the line of Bhavin Vithlani from Avendus Spark. Please go ahead. Am I audible? Yes, sir, you are. Yeah. So can you give an update on the UP Discom privatization and where is the process at? When do we expect the bid to be opened? It's too early because government is working at the RFP. So that is what currently they are working. So that is what the stage is currently. But we are definitely interested in participating in the tenders as and when it comes. But currently, the proposal is under finalization by the UP government. Okay. Okay. And my second question is on DGEN. If I look at the voluntary FY26 PLF reported, which is 21%, translates to around 2,300 million units of generation. So just trying to understand if we have sold about 714 in merchant, what are the other units being sold to? Where is it sold to? Is it being sold to the distribution circle in Ahmedabad, Surat? No. So I think you are considering this MUs on an annual basis. Yeah, exactly. Divided by four. Four. Yes, exactly. So I think you are looking at the MUs. You are calculating annual MUs, not quarterly MUs. 20%. You have to calculate for 90 days. Okay. Sorry. Yeah. Yeah. That's a mistake. One second. Yeah. Yeah. You're right. I was calculating for another plan. Got it. Got it. And finally, on the fact that how much would be the amount of units we are expecting to sell from or to put in other way in merchant market in the second quarter? I think we are not giving any estimates. As you rightly know, that merchant market is pretty unpredictable. And on top of it, LNG prices are also very volatile. So it is very difficult for us to give you any estimates. Okay. Sure. Sure, Rishi. Okay. Thank you so much. Thank you. Thank you. The next question is from the line of Nikhil Abhyankar from UTI Mutual Fund. Please go ahead. Yeah. So just one question, clarity on the NVVN tender. So is it fair to assume that the fixed cost related to the NVVN tender relating to 2.3 billion units of minimum offtake will get fully booked by end of Q3? So if contract is currently running up to 15th of October, but depending upon the demand from their side, if it's not fully utilized by that date, government may extend some portion. But we can safely assume that by Q3, it should get fully utilized. Okay. Fully utilized. Okay. And if it doesn't get utilized, will we be given the? We will get the minimum offtake fixed cost. Sure. Sure. Thank you. That's all from me. Thank you. Participants who wish to ask a question may press star and one at this time. I repeat, to ask a question, please press star and one now. To ask a question, please press star and one now. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Mr. Saurabh Mashruwala for closing comments. Thank you, everybody, for joining Torrent Power earnings call. Thank you very much. We wish everybody to stay safe and healthy. Thank you so much. Thank you. Thank you. On behalf of Torrent Power Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.