Ladies and gentlemen, good day and welcome to Torrent Power Limited Q4 FY 2026 earnings conference call. From the management team, we have with us Mr. Saurabh Mashruwala, Executive Director and CFO, Mr. Rishi Shah, GM Finance, and Mr. Jayprakash Khanwani, AGM Finance. As a reminder, all participant lines will be in the listen only mode, and there'll 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 0 on your touchtone phone. Please note that this conference is being recorded. Now from the conference over to Mr. Saurabh Mashruwala. Thank you, over to you, Sir. Thank you so much. Good morning to all of you, and thank you for joining earning call of Torrent Power for Q4 FY 2026. I will take you through the performance of the quarter, after which we would welcome questions. We'll explain the performance of the company as PBT first, then we'll take you through the tax expenses separately. PBT for the quarter stood at INR 547 crores as compared to INR 619 crores in the corresponding quarter of last year, a reduction of INR 72 crores. PBT for the current quarter includes non-recurring provisions of INR 171 crores arising due to capping of per power purchase cost for UNOSUGEN Power Project in the year FY 2024, 2025 true-up order. A similar restriction has been imposed in earlier years as well, which was contested by us and subsequently approved in our favor. As a result, a credit of INR 273 crores was recognized in P&L in the previous quarter of the current year. Considering prudence, provision has been recognized in the current quarter. Based on the past precedent, we are reasonably certain that the current matter will be also approved in our favor. Adjusted for this one-off, PBT for the quarter stood at INR 718 crores as compared to INR 619 crores in the comparable quarter of last year, an increase of INR 99 crores, that is 16% on adjusted basis. Tax expenses were lower during the corresponding quarter of last year due to non-cash reversal of deferred tax liabilities of INR 637 crores, and the deferred tax liability is not comparable. Business-wise factors contributing the performance are as follows. First, receipt of favorable orders from the regulators approving the carrying cost of previous years of INR 186 crores. Receipt of incentive for installation of solar rooftop in Ahmedabad and Surat by INR 58 crores. Reduction in T&D saving in licensed distribution units due to significant reduction in normative parameters by regulators, partially offset by improved T&D losses in distribution license, distribution franchisee business by INR 15 crores. Additionally, the contribution from the licensed distribution business was supported by the increase in ROE and ROCE on account of capitalized assets and higher rate of returns on equity as per new tariff regulations and other incentive increase of INR 15 crores. We would like to take this opportunity to apply certain pertinent changes in the tariff regulations with respect to allowance of ROE and ROCE on assets capitalized. There are two situations. One, first is for asset capitalized on or after April 1, 2025. Returns are now allowed on a return on capital employed basis, wherein underlying return on equity is guaranteed at a base rate of base ROE of 13%, which can go up to 15% based on the achievement of incentive milestone stipulated. This is as compared with the fixed ROE of 14% in the previous regime. For the asset capitalized prior to April 1, 2025, the situation is method of allowing of the return on equity on the regulatory equity base continue as under the earlier framework. Regulator has allowed incentive to be approved on this asset also based on achievement of incentive milestone, which in effect has increased the effective ROE from 14%- 15%. It is pertinent to note that the performance-based incentive included within the ROE are over and above the incentive which were already allowed in the form of saving in controllable expenses. This effectively has probability to improve ROE by 1% on an annual basis, depending on the performance of the licensed distribution business. The regulatory gap for the company has been reduced by almost INR 800 crores, backed by better operational efficiency as well as lower power purchase cost, with FPPPA remains the same as of last year. Contribution from thermal generation business adjusted for non-recurring items decreased by INR 90 crores, mainly on account of two factors. First, additional O&M expenses incurred during the quarter on account of scheduled maintenance. Second, reversal of certain provision made during the corresponding quarter of last year under the thermal generation segment. The third reason, contribution from the renewable generation reduced by INR 20 crores, mainly on account of income from generation-based incentive on account of achievement of statutory threshold timeline allowed for the incentive. The other factor contributing to the lower profitability was on account of increase in miscellaneous expenses and depreciation, which was on account of higher capitalization, mainly the renewable segments. Increase in finance cost backed by the higher capitalization and related borrowing. This completes the explanation of the financial performance during the quarter. Moving on to the project update. The progress to commissioning of 367 MW MSEDCL project, aggregate installed capacity, generation capacity of the company stood at 5.1 GW as on 31st March 2026, comprising of 2.7 GW of gas, 2 GW of renewable, and 362 MW of gas-based capacity. Khavda -Bhuj Transmission Project got commissioned during the quarter. For implementation of 1.6 GW thermal project in MP., activities are underway, wherein following major milestone have been achieved. First, a power sale agreement executed with MP Power Management Company Limited. Second, letter of award issued for boiler, turbine, and generator, as well as balance of plant. And environmental clearance received for the project. The second project update is on account of hydro pump, storage hydro project. For implementation of 3 GW of pump storage hydro capacity, activities are underway, wherein the following major milestone have been achieved. MSEDCL storage facility agreement with MSEDCL executed. Second, letter of award issued for a civil and hydro mechanical package as well as electrical and mechanical package. Third, environmental clearance received for the project. In terms of Nabha Power acquisition, CP compliance are underway right now. Transaction expected to be completed in the current quarter. Apart from these renewable projects of 4 GW and transmission project of Solapur are being under implementations. Further details of the pipeline projects have been summarized in our latest investor presentation available in our website. That's all for this quarter. Now I would 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 Operator. Thank you very much. We'll now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone 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. Participants, you may press star and one to ask a question. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Yeah. Good morning, Sir, and thanks for the opportunity. My first question is, can you please help us again with the one-off in the quarter in generation and explain the nature of the one-offs? I think, we missed you mentioned opening commentary, I missed, but I could not understand it. One-off item is basically UNOSUGEN power purchase cost, which they have capped it for FY 2024/2025, and true-up was due by March in the last quarter. We got a true-up order in the last quarter of March. In the last quarter of March, they have capped the UNOSUGEN power purchase cost particularly, and they have made a disallowance of INR 171 crores. That is one-off item for the UNOSUGEN Power Project. We, as we highlighted, we inform that in the earlier quarter, similar allowance was given by INR 273 crores. We made a provision earlier, which was allowed by the regulators in the previous quarter. We are hopeful that this will also get approved in due course. Understood. This order came in the March quarter. Am I right? Before 31st of March 2026. Understood. My second question is, can you help us with the gas availability and clarify about whether there's the earning risk or there's any availability risk of the gas for our gas-based power plants is in FY 2027? Yes, the war, as we informed earlier also that we have contracted three cargoes for meeting the summer demand. That, we are getting those cargoes. We are not being impacted because of the war situation between U.S. and Iran. The summer cargo, for meeting the summer demand, we have contracted three cargoes, out of which two cargoes we already received it. The next cargo is expected to come in the month of June, for meeting the summer demand. That situation remains same. The situation going forward, yes, price has gone up a bit. What we expect is that things will stabilize in some time, and supply will start, supply will flow in, I would say, from the Strait of Hormuz. As per the supply is concerned, our view is that the gas there is ample amount of gas is available in the market, though the price, because of the current situation, price has gone up. As per the supply is concerned, is not a major concern, I would say. Availability, proving availability is not the issue. We will continue to recover the fixed cost based on the availability of gas. Price is, yes, bit higher. We'll take some time to stabilize. My last question on the CapEx, which you did in FY 2026. Can you help us with the number and also the segment-wise CapEx and your expectation of CapEx in FY 2027? In terms of, can I give the full year details or the quarterly details you want? No, full year details, sir. FY 2026 full details, yeah. Yeah. License distribution and franchising, we incurred almost INR 1,600 crores CapEx for the full year. Transmission, since the one project, Khavda project, has got permission. That would enter construction right now. We spent about almost INR 550 crores in transmission projects. Thermal project, particularly the coal-based project, we spent about INR 70 crores CapEx. The renewable is a substantial chunk, close to INR 6,500 crores CapEx we spent for the renewables. Understood. The CapEx number for FY 2027, sir, expectation, how much? It will be definitely higher than this. I would say definitely much higher than this amount. Is it right? To expect two times of this number? Mohit, we will not be able to give you any guidance per se. You know, investor PPT, we have uploaded project-wise COD dates. Yes. Guidance would be difficult to give, but what we can say is that current year CapEx, the next year CapEx would be higher than what we have incurred in FY 2026. Understood, sir. Thank you and all the best. Thank you. Thank you. Thank you. Next question is from the line of Sumit Kishore from Axis Capital. Please go ahead. Good morning, Saurabh and Rishi. My first question is, you know, around gas again. Good to hear that two cargoes of gas out of three have come. What are the source countries from which you are getting gas now? The LNG sourcing agreement, which was with BP, JERA, which kicks off 2027, was that from Middle East countries or is the sourcing not specified in the contract? The cargo, which two cargoes we have got it's not coming from the Strait of Hormuz. It is other than Strait of Hormuz. We are getting the cargoes. The third cargoes also we expect we'll get it, should not be a issue. That is what currently we foresee. In terms of the supply starting from FY current, calendar 2027, yes, it is on with the BP and JERA. Hopefully things will be normal at by that time. Should not have any material issue as in getting the supply in FY calendar 2027 onwards. BP, JERA would be how many cargoes in the next financial year? In total, both of them combined, around 10 cargoes per calendar year. Oh, that's a lot of gas. This is only for Torrent Power or for Torrent Gas also? No, something will be, we have to allocate for the Torrent Gas also. How much is for Torrent Power, which is relevant for us? About five cargoes for Torrent Power. Got it. Sir, is the pricing in the contract for the three cargoes for summer demand this year, is around $10, is my understanding? Sumit, we'll not be able to give you exact pricing, but these are all fixed cargoes and hence, they are not high as what we see at the spot pricing. Very clear. They are lower than that. Yeah. The second question is on the T&D segment. You explained the couple of non-recurring items during the quarter. What I'm more interested in is that after the shift in the return framework, the on a like-for-like basis, if you would have calculated your sort of return under the new regime versus the old regime, is that proving to be ROE accretive? To what extent? You know, if you can sort of help explain this particular point. Yeah, let me take that question. Basically, if you look at it, the ROE regime, which was earlier was 14% flat, now it has been shifted to ROC. But assets which were capitalized pre 1/4/2025, those will also get incremental incentives if we are able to perform. If I look at it current year, the ROE is better than what we would have earned under the earlier regime. The incremental incentives will depend on the performance-based incentives, which means if you are able to manage that or if you are able to get that, you will have higher incremental ROE. Assuming that we'll be able to achieve those performance-based parameters, ROE definitely will be higher than what we got under the earlier regime. Rishi, you are already one of the best operating DISCOMs in the whole country. I mean, the AT&C losses are 2.5%, if I remember. Yeah. What better can you do? So it's not only- What is the performance? It's not only T&D losses. Sumit, it is a host of factors which also takes care of your availability of network. It also takes care of your smart meters, how are you achieving that. It also talks about definitely T&D losses and all. It also talks about your collection efficiencies. There are milestones being given. We are hopeful of achieving the most of the milestone. That is what the current expectation is. Got it. Just the last question on the renewable segment. There was a year-on-year decline in PBDIT in the quarter from the renewable segment. Are you also getting impacted because of the curtailment issues? How are you placed in terms of evacuation for the 4.6 GW peak that you are that is under implementation? How would you phase out the capacity addition after a rather lackluster year, if I may say so, in terms of capacity addition for Torrent Power at 250 MW +. What is it looking through FY 2027, 2028, and what is the phasing? How much will come in first half and second half of the year, if you can give some color. We are not impacted by this scenario, I would say. We are backed with PPA. We are not worried. Our open capacity, very minuscule open capacity. There is no curtailment, I would say, in our renewable power project supply. We are not impacted, and we don't expect that there'll be some impact going forward also because of the curtailment things. As far as phasing is concerned, Sumit, effectively, we expect that next year there should be 1.2 GW-1.4 GW of commissioning. If you look at the phasing, if look at our investor PPT, we have broadly given which projects are expected to come along with months, which are expected to come. You can refer t hat phasing. Yeah. Okay. Sorry. I think, yeah, that information is there. Thank you. Yeah. Thank you. Next question is from the line of Satyadeep Jain from Ambit Capital. Please go ahead. Hi. Thank you. Clarification on the one-offs. If I understood correctly, generation reported EBITDA losses, INR 39 crore. You're saying there's a one-off of INR 171 crore, so that gets added. Still that's still maybe INR 120 crore, INR 130 crore of adjusted EBITDA, which is typically lower than the EBITDA you generate on the regulated assets. What is driving that, or is there anything else we're missing? Secondly, on the one-off would be just clarifying, INR 1,110 crore is the transmission distribution EBITDA. You're saying there is INR 186 crore of one-off there, right? Just clarification on the one-offs. Generation, as you rightly said, the INR 171 crores were the charge we have taken in the generation business which has impacted the generation EBITDA. Removing that, there is about INR 90 crores reduction, mainly because of two factors. One is the higher O&M expenses because of our scheduled maintenance. We made some certain provisions last year, which we may reverse. We have reversed certain provisions last year, which is not the case this year. That both has impact on the generation EBITDA. In terms of distribution, we got the carrying cost order in the month of March. We have booked distribution income of INR 186 crores. This is a routine feature, I would say. It's not basically, we don't see as a one-off because every year we are getting carrying cost order because of the regulatory assets we have built up so far. It will be a routine feature, and we keep on getting this kind of orders when the certain items will be approved in our favor. Okay. The second one, gas business. You mentioned there are 10 cargoes you have contracted, and some will be Torrent Gas and Torrent Power. Just wanted to understand how do you have to show availability because seven, eight cargoes for Torrent Power will not be sufficient for showing 80%-85% availability. What do you have to show to get the full carrying cost? Just understanding how that process works. Also at the current gas prices, do you see any potential at all for selling into HP-DAM? Are you seeing any demand in HP-DAM, or do you see any LNG trading gain possibility at the current slope levels? The 10 cargoes which we have booked, for, from the next year onwards is, we have contracted 10 cargoes. We always spot market or anything. Whenever we required, we can buy it basically. It's not these are the cargoes available only. Always opportunities available to buy more cargoes also as and when demands, we see the demand coming in and the price are reasonable. Yes, it is, procurement will go up based on the demand and the price going forward. Satyadeep, just to add, effectively, if you look at it, last four or five years, my PPA-based, gas-based thermal power plants, their average PLFs has been around 30%- 35%. If I assume that kind of PLF going forward also, six to seven cargoes are sufficient enough to take care of that. Effectively, all these cargoes are take or pay contracts. If you assume at 85% PLF and book your cargoes, and if that is not lifted by the DISCOM, then you are, you are looking at take or pay penalties or take or pay. Payments to be paid. What we try to do is manage the flexibility of gas based on the DISCOM demand. As Saurabh rightly mentioned, that we anyways have spot available if there is a need for cargoes. Gas is available, so demonstrating availability is not at all an issue, which we have demonstrated earlier also, where while referring about 35% PLF. Demonstrating availability is not an issue. We will always demonstrate availability because ample amount of gas is available in the market. You try to show availability based on maybe anticipated PLF in case, the demand is higher because the availability has to be in sync with the schedule. In that case, you would just book cargoes on spot and show availability. Is that? Otherwise there will be under-recovery if there is. Gas is always available. It's a question of pricing, at what price gas is available. If re-price is reasonable, we always import the gas, and that is what we did in previously also. We have a fair amount of coverage available go next round also. Availability, dispatching capability, we won't foresee any issue. The possibility of, maybe hedge time, at all at current prices or LNG trading at current slope. Are you seeing anything in the near term? I think, at current prices, there would be I mean, very difficult to sell power on the merchant prices. At current $20 or $16 sort of gas prices. If prices go down, LNG prices and demand considering what we have seen in last two months, if that remains, then there could be a possibility going forward. For that, LNG prices in the international market should come down. LNG trading, anything slope given the current slope, are you. No. Right now we don't have many cargoes booked. There is no inventory right now with us for a trading business. Okay. Just last very quickly on the leverage. You've obviously exercised the optionality by using capital for Nabha Power and also for MP. Given the leverage that you're looking at right now, is there potential? Are you looking at deploying more capital on any new thermal bids or any other opportunity? For now you think you're comfortable with the leverage and maybe execute the projects you already have? No. See, if you look at the power sectors, we're in investment phase right now, our leverage ratio is quite comfortable. With the committed CapEx also, we don't see that the leverage will exceed beyond our beyond our reach, I would say. There is enough cushion available within the balance sheet to take up more project if we are getting the good project and the good returns also. We, there is no restriction, I would say, in terms of leveraging. To take up any further opportunities for investment. Satyadeep, all these thermal projects are typically five, six years sort of investment cycle, which you see. Right now the CapEx cycles or the committed CapEx which we have goes till FY 2031, 2032. If you really look at, based on current profitability and the new projects coming in, the leverage is under control. Once the project commissions, it falls off significantly once EBITDA starts coming in. We feel that there is still room for us to, you know, take on incremental projects, as far as thermal is concerned or renewable is concerned, considering that new projects will start giving us EBITDA or cash flows, as soon as they commission. Current CapEx phasing is well balanced, we will be able to manage any incremental project coming into fund both kind of our CapEx. Okay. Thank you so much, Sir. Thank you. Next question is from the line of Sucrit D. Patil from Eyesight Fintrade. Please go ahead. Good morning to the team. I have two questions. My first question to Mr. Saurabh is, in your point of view, how is Torrent Power preparing to capture future opportunities in renewable and distribution areas while addressing challenges such as regulatory uncertainty, fuel cost volatility, and capital intensity? What strategic levers will you be putting into place that we will see in the coming quarters that will help you to sustain the growth and keep the profitability stable? That's my first question. I'll ask my second question after this. Thank you. In terms of our investment plan, as you know, we have already announced investment plan of renewable of 4 GW of capacity with INR 28,000 crores CapEx. Coal also we 1.6 GW with INR 23,000 crores CapEx. Pumped storage 3 GW, we have investment plan about INR 14,000 crores. Distribution CapEx keep on happening every year as a gradual CapEx in all across all our distribution area. Yearly we expect about INR 2,000 crores CapEx at least for 4 years-5 years going forward. We are doing this Nabha acquisition. In terms of CapEx plan, we have very fairly good CapEx plan. We are looking and Torrent Power sector per se is on an investment phase. Good opportunities are available, good projects are available. Always we are ready to be, and our balance sheet is very strong, under leverage balance sheet. Ample room is available to sort of further investment also. We are quite comfortable, I would say, in terms of our investment strategy. Thank you. My second question to Mr. Rishi Shah is, what improvements in financial reporting and analytics are being implemented to enhance the decision-making and investor confidence? How do you see technology and automation contributing to faster, more accurate financial operations in the coming quarters? Thank you. In terms of decision-making and all those things, as I explained in my earlier remarks also that the power sector is on investment phase. Good opportunities are available for players like us, and the leverage ratio is also comfortable. We are on the means, and demand is also going to be strong. At least if you look at the last 10 years CAGR of the power demand is about 6% CAGR. Same thing we'll see that the same momentum is continuing. Since we have a very balanced portfolio of license distribution, franchise distribution, in terms of generation, we have a two-part tariff available for our key projects, basically, key plans. We have some open capacity. All kind of a levers available to achieve a good performance, I would say, going forward. Thank you, and best wishes. Thank you. Thank you. Next question is from the line of [Sunny] from Avendus Spark. Please go ahead. Yeah. Am I audible? This is Bharani from Avendus. Yeah. What is the adjusted EBITDA for 4Q FY 2026, Sir, given the adjustments that you will be making in the generation segment and in the transmission and distribution segment? After you adjust for that, what would be the adjusted EBITDA? For the quarter, our EBITDA report is of INR 1,220 crores. One-off is INR 171 crores we have charged. You have to add INR 171 crores in the reported EBITDA. That's what the adjusted EBITDA for the current quarter. Could we adjust even the INR 186 crores in the transmission and distribution segment? That I explained that. It's a basically normal. Since we are carrying regulatory asset, it's bound to happen that we are going to get the carrying costs as and when on most of the orders coming in. It's a normal features, I would say. It's not, may not be considered as a one-off. That is what our our, what it is. It's a normal features with all, I would say, not only to us, with all distribution company who they've Because they are carrying a regulatory asset, and they will accrue the carrying costs every year. Bharani, we are not considering that as a one-off, as Saurabh explained. Okay. When it comes to the generation segment, when I'm adjusting for this INR 171 crores, we reported - INR 39 crores. The adjusted EBITDA comes to INR 132 crores+ side, compared to INR 233 crores for FY 2025 same quarter, that is the fourth quarter. This drop you are telling is because of what reasons, Sir, that I missed? The first is on account of the some scheduled maintenance in our gas-based power plant through the course of the quarter, which has cost us additionally, I would say. INR 40 crores. There was some reversal which we made the last similar quarter of last year, which is not the case current, in the current quarter, which has impacted the performance of the generation business. Okay. Usually there is some LNG gain or merchant gain in this segment. I'm assuming there is no such number in this particular quarter? The Q4 is always a winter month. The winter quarter would be less merchant sale and LNG sale. If you look at the both the quarter, comparable quarter of last year and the current quarter, there were no material, I would say, gain to be reported, I would say. Some big gain will be there, but not material, I would say. Okay. One final clarification on this, UNOSUGEN power purchase cost, which is resulting in this, INR 171 crore number. Is it because the regulator is yet to approve this INR 171 crores of extra cost incurred in FY 2024? They have put a cap on the cost, basically. They up to certain amount they have approved. Beyond that, they said, As of now, they are not approving it. We will have similar situation we have happened earlier also. In the last quarter, in Q2, they have approved, they have removed the cap and approved the UNOSUGEN full power purchase cost. We expect that we'll file appeal, and decision will come in our favor going forward. Okay. Coming to the renewable segment's EBITDA, which is at INR 186 crores, this is flattish to even lower compared to last year same quarter despite capacity additions. How should we read that? It's a flattish number. Some reduction is there because of the GBI in one of the project getting expired. This means period is over. This is because of the mainly reduction in the GBI income. That has impacted the EBITDA of the current quarter. Sorry, I didn't get. What is the GBI income? Generation-based incentive which government give for the renewable project for certain period of time, 7 years-10 years. That has expired. This means that benefit was completed, so that was not available for the current quarter. That has impacted the profit of the renewable segment. Understood, sir. When would we have Nabha Power's numbers getting consolidated? We expect the month of June, we will be able to complete the transaction because currently the Nabha, L&T is in the process of complying the CP, condition precedent. Which once it will happen, it transact, we'll continue the transaction before the in the current quarter. We expect the June numbers will reach the Nabha Power project. Okay. That is 1Q FY 2027, we'll have consolidation of Nabha? Yeah. That is what currently we expect. Okay, sir. Final question is on our gas supply. If my understanding is right, we have three cargoes from IOCL and Reliance. Three cargoes for the summer demand. We also have then that JERA cargo that we have booked from calendar year FY 2027. If my understanding is right, with all these cargoes, would we be able to first have the availability for SUGEN assured for FY 2027, plus also generate power during the summertime in the next one year also? No, your understanding is not right. I would say in terms of first point about the IOCL and the ONGC and Reliance Gas, it's not three cargoes. IOCL currently is a force majeure because They were getting the gas through the Qatar, which is under the force majeure. Nobody is getting the gas from the IOCL right now. In terms of ONGC and the Reliance gas, which is a domestic gas, it was as the government has pooled the cargo, pooled all the gas so that they can supply to the private sector requirement like CGD and the fertilizer kind of a thing. Power sector comes later. Those gas is not available to the power sector, so we are not getting the gas because the government has pooled the gas of Reliance and ONGC. That is not available. In terms of your second point about three cargoes, yes, the two cargoes we have received. One cargo is expected to get in month of June. Any further requirement we can meet from the spot purchase or maybe short-term contract we can able to do during the course of the balance period of the year. In terms of cargoes coming in from the JERA and the BP basically, we'll keep on getting from the next year onward, so that will continue. Right now, with the three cargoes that we are getting from summer demand, we are meeting availability of SUGEN and UNOSUGEN, and also, we'll be able to, you know, generate, if required from DGEN plant. Is the understanding right, sir? These three cargoes we are is available for our distribution. We are optimizing our distribution requirement and supplying, meeting the availability criteria. Any additional gas available through this optimization will be used for the merchant sale. You mentioned in one of the replies that at $16-$20, it's difficult to make money in the merchant market. Just wondering, given it will come to variable cost of around INR 9-INR 10, the high priced DAM market will have merchant prices higher than that. Just wondering why would you say that? No, no, we are not saying that it would be difficult. What we are saying that on a RTC basis it would be difficult, but on the peak market, which we, which is our target market, we are able to do something upon the peak market, not on the RTC basis. Bharani, you can't buy a cargo only for the peak market. You need some basic demand for RTC wherein you then book the cargo and then supply. It is not just peak market for which you buy a cargo. There are logistical issues also involved. With our peak cargo, we are optimizing all our demand requirement and then doing it. Final two questions. With the JERA and BP cargo coming from next year, would we have enough comfort for the full year instead of relying on this summer cargo? Will that be the right understanding? Yeah. With JERA and BP cargo, yes, some. Additionally, we can always buy the spot cargoes or do the short-term contract. Will be enough to demonstrate the availability for SUGEN and UNOSUGEN. Okay, sir. Pardon me. Last question on these three summer cargoes. You said we got two. Does that mean that this is coming from the non-Persian Gulf source? Yes, you are right. You are right. The last cargo that we are expecting in June would also be non-Persian Gulf, so it may not be impacted. Is that understanding right? Yes, you are right. Okay, sir. Thank you so much and all the best. Thank you so much. Thank you. Thank you. Next question is from the line of Anuj Upadhyay from Investec India. Please go ahead. Yeah, hi. Thanks for the opportunity, sir. Just one clarification on the CapEx guidance which you mentioned. Roughly you mentioned it's around INR 28,000 for renewables, INR 26,000 for coal and INR 14,000 was for the PSPs. That takes the total to roughly INR 68,000+ your normal distribution CapEx to the tune of INR 1,500 or INR 2,000 per annum. That takes the total to INR 80,000 over a period of five years. Is this a fair assumption if we assume that annually that number could range in the range of INR 15,000-INR 20,000? Coal you said INR 26,000 crores, which is about INR 23,000 crores. Only one correction. Yeah, INR 26,000 crores, sir. Total INR 80,000 crores over next five years. Is that a fair assumption? Yes. You can take this kind of assumptions, yes. We are working with this kind of assumptions. Oh. Okay. I know, like if you are just want to phase it out, I believe probably, you know, second or third year onward it would be heavy CapEx depending upon the milestone which we are achieving on the transaction phase. Right. Okay, okay. Fair enough, sir. Secondly, sir, on the connectivity part, can you know, just mention how the connectivities are placed for the upcoming renewable projects? Connectivity in most of the projects are in place right now, so connectivity is not the issue. Upcoming transmission line which has to come in on time so that we can implement all our renewable projects on time as per the expected schedule, I would say. Otherwise, connectivity is not an issue for our renewable projects. It's available for the almost most of the project, I would say. Okay, sir. Lastly, on any development on the parallel licensing? No further development at this moment. Thank you, sir. That's all from my end. Thank you so much. Thank you. Next question is from the line of Shirom Kapur from Jefferies India. Please go ahead. Hi, sir. Thanks for the opportunity. Just had a question on your merchant LNG gain. You said, of course, 4Q was not material, but for the full year, could you maybe quantify how much was the overall gain during the year and how many merchant units were sold? We don't bifurcate it between LNG sales and merchant. If I look at the total gains from both of them, it would be around INR 675 crores for the full year. In terms of units what we sold, it would be around 1,400 MUs. Got it, sir. Just to understand on your Nabha Power acquisition. Could you, this is INR 6,900 crore acquisition. How much would be the debt component and equity component? Do you have a sense of a rough split? Secondly, you know, how much of this could second question on Nabha would be how much of this, you know, would add to your fixed asset base going ahead? Thirdly, what are the tariffs you're looking at in Nabha Power on that plant? It's a acquisition enterprise value, as we announced, is about INR 6,800 crores. Equity value, we have about INR 3,400 crores debt. The balance is the equity value. The plan tool is about close to INR 3,500-INR 4,000 crores for the funding of the project. Tariff will be as it's a two-part tariff, basically. Variable cost is pass-through. That is what this is what Nabha is. Would you be able to share, you know, what kind of tariffs we are expecting, then at least on the fixed side? We don't have information available right now, but we can share the information offline. Okay. Understood, sir. Thank you so much. Thank you. Thank you. Next question is from the line of Dhruv Muchhal from HDFC AMC. Please go ahead. Yeah, sir. Thank you so much. A few questions on the renewable pipeline. The MSEDCL solar project, when should we expect the COD? In fact, 360 MW out of 367 MW, most of the capacity we have commissioned. Some capacity is not commissioned because of the locations of the land, which we have got it from the government is not ideally suitable. We have asked for the replacement and from the government. It's a basically leased land which was provided by government. We expect the replacement of the government. We expect, next 6 months-9 months, I think it should get commissioned. You can do pro-partial billing, for the portion of the capacity that you have commissioned? Commission we have started billing. Is a government issue because it is a scattered project. It's located various locations. Project is we have installed a solar project in Nashik area. Once that issue is sorted out, in fact, the whatever capacity we have commissioned, we have started the billing also. All right. Sir, for the SECI XII project, COD? COD we have mentioned. We have applied for extension there. It will take some time. Should I expect, say, sometime FY 2027 or 2028? 2027. I think before March 2027 it will get commissioned. March, yeah. Got it. Sir, are you still going ahead with the merchant power, 600 MW merchant project or are there any changes? We are doing that project. Dhruv, if you recollect our past interactions, what we have said is that all these merchant. Right now is merchant, we are commissioning those capacities. As and when going forward Sure. If we win any tenders or bids, we will be allocating that to those bids. Effectively, it may not remain merchant for the life of the project. Yeah. You go ahead with the project construction and everything. You're going ahead with the project? Yeah. Okay. Lastly, we have seen that a lot of developers are doing is the, you know, switch to batteries, because you also have a lot of FDRE projects and hybrid projects. Any configuration changes in your projects, and any cost, you know, reduction or, probably improvement in IRR that you are seeing? Not as of now. I think most of the projects have a small battery. Some of our projects which are hybrid or RTC projects, they have battery component already built in, but these are not very large, so there will not be a significant shift in cost. Okay. Sure, Sir. Okay, perfect. Thank you so much, and all the best. Thanks. Thank you. Thank you. Next follow-up question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Yes, sir. Thanks for the opportunity once again. Few clarification. One is, did you used to book, generation-based incentive for the RE, mainly in the fourth quarter? Is that understanding right? No, it was, it was across, throughout the year, every quarter. Understood. Understood. Second question? One of the project, the time period and the amount was used basically. That is what discontinued from the last quarter onwards we used. Understood, sir. Given the wind-heavy portfolio, how do you see the impact of DSM, the new regulation? Can you please help us with the current status of the new regulation? Our portfolio is not a wind-heavy. I would say it's a balanced portfolio. If you look at the 4 GW capacity we are commissioning, almost, 50% is coming from the wind, 50% is coming from the solar. It's not a wind-heavy portfolio, I would say. I'm talking about, Sir, existing portfolio. Sorry? Existing portfolio has more wind. How do you see the impact on DSM, Sir? Do you see the impact? Portfolio about 60% wind, 40% solar here. Yeah, some impact is there in terms of PLF, I would say. Understood. Maybe I'll take it offline. My third question, sir, are you seeing the incremental opportunity, thermal bidding opportunity for the state? Are we looking to bid for it? Yeah, there are a couple of states contemplating of, enhancing the thermal capacity. We are actively looking at it. Understood. My last question on the merchant capacity, which you spoke about on the RE side. Is there any configuration between the solar and wind you're looking at? Are you also looking to add battery to that to ensure that you get a higher tariff? If you look at our profile of our bidding pattern of last two years, I would say we are more inclined towards the complex project like hybrid project or RTC power projects. That is what we are focusing more on those kind of projects, so that we can get better tariff also, better IRR also. Sorry, sir. My question was the merchant capacity of 603 MW peak, which you have mentioned in the PPT. Are you now looking also multiple peaks between wind and solar? Are you looking to add also battery in this? Mohit, if you look at our 603 MW, it would be slightly higher on the wind side out of the, and there is some solar. Right now we are not contemplating any battery usage there. Going forward, if we feel that it is required, we may add on. As of now, we are not adding any battery because it is more of wind, which is typically non-solar hours and where you can get better returns. Understood, sir. Thank you. Best of luck, sir. Thank you. Thank you. Thank you very much. Next question is from the line of Neil Ostwal from PGIM India. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. Sir, do you have any current capacities tied up on the C&I side? Do you plan to tie up future, significant future capacity on the C&I side? What is your view on the C&I segment? No. I think, Neil, we currently have around 860 MW of C&I projects under construction. We keep on looking at tying up with C&I consumers as and when they are available. We are open of tying up additional capacities. As of now, we have 860 MW of C&I projects under construction. Understood, sir. All right. Thank you, sir. Thank you. Thank you. Next follow-up question is on line of Aditya Birla. Please go ahead. Sorry, [Nirmal] from Aditya Birla. Hello, am I audible? Go ahead now. Yes. Yeah. I just wanted to understand how you are thinking about your gas-fired plant business in the long term. Given that LNG as a fuel has proven expensive for India, and that's where, that's one of the reason why we have seen Indian plants running at 15%- 20% PLFs. There was an impending global gas glut that was expected to come in the, in 2027 due to increased liquefaction capacity. Due to Iran war, that has also been pushed forward. I just wanted to understand what kind of PLFs do you are you expecting over long run? Thank you. Basically, you are right. There's a gas glut is coming in basically. Lots of gas is going to flow in. Maybe because of the Iran war, some pushback will be there in terms of timing, I would say, not in terms of availability going forward. We don't see any change in the situation except some timing will be delayed, I would say, when more gas will be flow, I would say. In terms of PLF. It's very difficult to predict the PLF, but yes, availability may not be the issue going forward. Price, one has to monitor the price and then take your calls. The other thing is if you look at our portfolio, around 50% of our portfolio of gas-based power plant, we have tied up long-term PPAs with our own DISCOMs. There, we are getting fixed cost recovery on the availability basis. That should not be an issue. As far as merchant capacities are concerned, we take benefit of short-term pricing mismatches. This year it was slightly constrained because of LNG, very high cost of LNG. If you look at last four to five years, we have been able to make decent profits. Out of this merchant capacities which we have. Our expectation going forward is once all this subsides, India as a market demand should improve, and there will always be a deficit of power going forward, which will allow us to take benefit from our merchant capacities. That is the expectation right now. Okay, sir. Thank you so much. Thank you. Next question is from the line of [Sunny] from Avendus Spark. Please go ahead. I just forgot to ask one question. After June of this year, what is the source of gas we will have to show availability at SUGEN and UNOSUGEN? It's a very short-term. We have to buy from the short-term market, basically. On the spot is in the short-term. We have to do the short-term contracts. Gas is available. Gas is not an issue. Basically, at what price we are getting gas. Bharani, I think the question is the price, not availability of gas. For demonstrating availability, Gas is amply available. Whether DISCOM is willing to take that gas and use that electricity at high rates, or they are able to manage it from buying it from the merchant market, that balancing will have to be done. As far as availability of plant is concerned, there is no shortage of gas. It is only the price which is higher. Sure. When you say spot, it would be, you know, gas from IGX, something like that or? No, spot cargoes. What he's trying to say is spot cargoes. Right now, domestic gas is not available as government has pooled everything. We have to import the gas. Understood. Hence, you know, when the tenders are invited, you would be able to get it in the short notice? Which sort of tenders? The spot cargo? Yes. We keep on doing. If you are procuring cargoes, we generally do, we float a tender in the international market and then we bid it out. Understood. Okay. That's it from my side. Thank you. As there are no further questions, I'll now hand the conference over to Mr. Saurabh Mashruwala for closing comments. Thank you everybody for joining Torrent Power earnings call. We wish everybody to stay safe and healthy. Thank you so much. Thank you very much. On behalf of Torrent Power Limited, that concludes this conference. Thank you for joining us, and you may now disconnect the lines. Thank you. Thank you. Thank you Sir.