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Ahmedabad-based utility giant Torrent Power Limited has taken a decisive step towards
expanding its presence in the thermal energy sector. On September 23, the company announced the acquisition of Newzone India Private Limited (NZIPL) and Newzone Power Projects Private Limited (NZPPPL) for a total of ₹211 crore.
The transaction involves the purchase of 11.95 lakh shares of NZIPL (49% equity) and 3 crore
shares of NZPPPL (100% equity) from the Sarawagi family and associated HUFs. Since NZPPPL already held a 51% stake in NZIPL, Torrent Power has effectively gained full ownership of both companies.
What makes this acquisition significant is the 922 acres of land in Madhya Pradesh’s Annupur district under NZIPL’s portfolio. This land, comprising both private and government-leased parcels, is earmarked for the development of a large-scale thermal power project. Neither company has been active in operations so far, with no reported revenue over the past three years.
Torrent Power has clarified that the deal is a cash-based acquisition and does not fall under the ambit of related-party transactions. The company expects the process to be completed within the next four months.
This move comes at a time when Torrent Power is navigating a challenging financial phase. The company recently posted a 24.7% drop in net profit for the first quarter of FY26, recording ₹731 crore compared to ₹972 crore a year ago. Revenue also slipped by 12.5% year-on-year, while operating profits (EBITDA) declined by over 20%, reflecting the twin challenges of reduced power demand due to early monsoons and higher gas prices.
Despite these headwinds, Torrent Power emphasized that its core business remains strong.
Adjusted for one-off factors like weaker merchant gains, the company’s financials remain largely comparable to last year’s performance.
On the market front, Torrent Power’s stock saw modest movement, ending the day at ₹1,279.20 on the BSE, up by 0.84%. Investor sentiment appeared buoyed initially by optimism around the company’s future plans, especially its commitment to a ₹22,000 crore thermal power project, though some of the early gains were pared later in the day.
By securing strategic land assets in Madhya Pradesh, Torrent Power is signaling its intent to
strengthen its foothold in thermal energy, even as it balances the broader transition toward
renewable power. The coming months will reveal how effectively the company translates this acquisition into a robust addition to its energy portfolio.