Intimation on Credit Ratings

October 23, 2026 To, To, Corporate Relationship Department Listing Department BSE Limited, National Stock Exchange of India Limited 14th Floor, P. J. Towers, “Exchange Plaza”, C – 1, Block G Dalal Street, Fort, Bandra- Kurla Complex, Bandra (East), Mumbai-400001 Mumbai-400051 SCRIP CODE: 532779 SCRIP SYMBOL: TORNTPOWER Dear Sir / Madam, Sub: Intimation of Credit Ratings Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 With reference to the above, we hereby inform that India Ratings and Research vide its letter dated October 23, 2026 at 12:21 pm (IST) has assigned the long term credit rating of proposed non-convertible debentures of amounting to ₹ 2500 Crore and re-affirmed its rating on the long term credit rating of non-convertible debentures amounting to ₹ 7700 Crore to “IND AA+/Stable”. India Ratings and Research has also re-affirmed its rating on the short-term commercial paper as “IND A1+”. We hereby further inform that, CRISIL Ratings vide its letter dated October 23, 2026, at 17:01 pm (IST) has assigned the long term credit rating of proposed non-convertible debentures of amounting to ₹ 2500 Crore and re-affirmed its rating on the long term credit rating of Bank Loan facilities and non-convertible debentures amounting to ₹ 8735 Crore to “CRISIL AA+/Stable”. CRISIL Ratings has also re-affirmed short-term Bank Loan facilities and commercial paper as “CRISIL A1+”. The Rationale for the same as given by India Ratings and Research and CRISIL Ratings are attached herewith. You are requested to take the same on records. Thanking you. Yours faithfully, For Torrent Power Limited Rahul Shah Company Secretary & Compliance Officer Encl.: As above India Ratings Affirms Torrent Power’s NCDs at ‘IND AA+’/Stable; CPs at ‘IND A1+’; Rates Additional NCDs Oct 23, 2026 | Torrent Power Limited | Integrated Power Utilities India Ratings and Research (Ind-Ra) has taken the following rating actions on Torrent Power Limited’s (TPL) debt instruments: Details of Instruments Size of Rating Regulator of Date of Coupon Maturity Rating Instrument Type Issue (INR Assigned with Instrument Issuance Rate (%) Date Action billion) Outlook/Watch Non- convertible SEBI - - - 25 Assigned AA+/Stable debentures* Non- Refer ISIN IND convertible - - - 77 Affirmed annexure AA+/Stable debentures* Commercial Up to 365 (reduced RBI - - IND A1+ Affirmed paper days from 16.50) *Details in Annexure Analytical Approach Ind-Ra continues to take a fully consolidated view of TPL and its subsidiaries while arriving at the ratings, as all the entities operate in the same line of business, have strong operational and strategic linkages among them, and a common management. Detailed Rationale of the Rating Action The ratings reflect: 1) the regulated cost-plus model of its distribution licensee (DL) business and generation assets (Amgen, Sugen and Unosugen), which allows TPL to generate a 14%-16% post-tax return on regulated equity; 2) strong operating performance of DL areas and distribution franchise (DF) areas, resulting in healthy EBITDA generation from its distribution business, contributing around 60%-70% to the total EBITDA; and 3) healthy credit metrics, with net leverage [(total debt – cash and cash equivalents)/EBITDA] at 2.1x at FY26 (FYE25: 1.4x). TPL successfully acquired Nabha Power Limited in June 2026. The acquisition was primarily funded through debt, which increased TPL’s debt level by INR65 billion- INR70 billion. Ind-Ra notes that TPL has adequate headroom to absorb the increased leverage resulting from the acquisition. The ratings also consider TPL's diversified under-construction book, including renewable, thermal, and storage projects. As of 1QFY27, the company had approximately 4.6 gigawatts (GW) of renewable energy project, 1.6GW of coal-based thermal power project, and a 3GW of pumped storage plant (PSP) under-construction. Ind Ra estimates that ongoing projects will result in elevated leverage over the medium term. However, credit metrics are likely to remain healthy, as TPL currently operates with a net leverage of operating assets of around 1.5x [(net debt–under-construction debt)/EBITDA] as of FY26. The gradual increase in accruals from operations, particularly from pipeline renewables project, is likely to support the equity contribution for its under-construction projects. Any significant time or cost overruns shall be a key rating monitorable. List of Key Rating Drivers Strengths EBITDA supported by regulated nature of operations Healthy operating performance of DL and DF areas DL and renewable capex to drive EBITDA in medium term Fuel and power purchase price adjustment (FPPPA) mechanism aids slower build-up of regulatory gap Healthy credit metrics, but leverage to increase in view of acquisition and large under-construction portfolio Weaknesses Large capex plan, with high gestation period, exposes TPL to execution risk, but mitigated by strong and experienced management Low plant load factor of gas-based plants Detailed Description of Key Rating Drivers EBITDA Supported by Regulated Nature of Operations: TPL’s operating profitability is supported by the regulated cost- plus model of its DL business (Ahmedabad, Gandhinagar, Surat, Dahej, Dholera, Dadra and Nagar Haveli and Daman and Diu) and the generation assets, including Amgen, Nabha, Sugen, Unosugen, and DGEN (33% of gross capacity under the PPA with own distribution business, 31% with Punjab, and 1% with Madhya Pradesh), which allow TPL to generate a post- tax return of 14%-16% on regulated equity. The ratings also benefit from the timely tariff allowance by the Gujarat Electricity Regulatory Commission (GERC) and Joint Electricity Regulatory Commission (JERC), with the tariff true-up having been completed in FY25 for the DL region. This ensures a timely recovery of the tariff gaps and eliminates the risk of continued cash flow mismatches from the distribution business. The transmission and distribution (T&D) segment contributed 60%-70% to the EBITDA in FY26. In the DL and generation assets, EBITDA generation is certain considering that (a) 33% of gross capacity is under the power purchase agreement (PPA) with its own distribution business (b) 31% of the capacity is tied up under a PPA with a Punjab distribution company are regulated in nature with variable cost pass thru. TPL's EBITDA remained almost stable at INR15.38 billion in 1QFY27 (1QFY26: INR14.83 billion; FY26: INR55.41 billion; FY25: INR53.07 billion; FY24: INR45.6 billion). TPL’s EBITDA includes net gains from merchant sales amounting to about INR2.5 billion during 1QFY27 (1QFY26: INR3.3 billion; FY26: INR6.8 billion; FY25: INR7.6 billion; FY24: INR3.3 billion). The licenses for Ahmedabad and Gandhinagar were valid until November 2025. Ind-Ra notes that TPL’s DL has been deemed automatically renewed by regulators for 25 years upon its expiry pursuant to the Electricity Amendment Rules, 2023. The license for Surat is valid until 2028, while that for Dahej is 2034, Dholera Special Investment Region (2043) and the union territory of Dadra and Nagar Haveli and Daman and Diu (2047). Furthermore, TPL is setting up a 1.6GW thermal power plant for which a PPA has been signed with Madhya Pradesh Power Management Company Limited (MPPMCL), with an initial tariff rate of INR5.83/kWh, comprising a fixed tariff of INR4.22/unit recoverable on a plant availability basis, with the variable cost as a full pass through. Under the PPA terms, the coal availability will be arranged by MPPMCL from Coal India Limited, under the Shakti Policy by the Ministry of Coal. Additionally, TPL had executed an energy storage facility agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for developing and supplying a 2GW/16GWh PSP in September 2024, which is scheduled to be set up by October 2028. Healthy Operating Performance of DL and DF Areas: The healthy EBITDA generation of TPL's T&D segment was enabled by [Showing first 8,000 characters — download PDF for full document]