Torrent Gas, the city gas distribution (CGD) arm of the Gujarat-based Torrent Group, is all set to hit the markets with an initial public offering (IPO) in H2FY26. With an issue size of INR 2,500 to 3,000 crore, Torrent Gas IPO is expected to value the company at INR 10,000 to 12,000 crore. The proceeds will be used for capital expenditure, green energy initiatives and debt reduction.
The company is in talks with top investment bankers to structure the issue which may involve a mix of fresh equity and promoter stake dilution.
Torrent Gas operates in the rapidly growing CGD space in India and has licenses to build and operate gas distribution infrastructure in 34 districts across 7 states and 1 UT. Its business includes CNG for vehicles and PNG for residential, commercial and industrial use.
For FY24 (April 2023 to March 2024), Torrent Gas reported revenue of INR 3,154 crore. The company posted EBITDA of INR 252 crore in 9 months of the fiscal, which is around 8% EBITDA margin.
Strategic Growth and Green Hydrogen Foray
Torrent Gas has ambitious plans to expand its CGD footprint, particularly in Tamil Nadu. The company is investing INR 5,000 crore to really solidify its position in the state. That includes building out a 466-km pipeline network. Environmental clearance for the project came through from the Tamil Nadu State Coastal Zone Management Authority (TNSCZMA) recently. That should – and has – given the project a boost.
One of the company’s most significant moves into new territory is its entry into the green hydrogen space. A pilot project is already up and running in Gorakhpur, where it’s blending 2.5% green hydrogen with natural gas. That marks the company’s first steps into the hydrogen value chain of the future. Torrent Gas also has a 5% stake in the Indian Gas Exchange. That reflects just how seriously the company is taking its role as an innovator in the energy sector.
Strengthening Supply Chain and Industry Collaborations
Along with its expansion plans, Torrent Gas is also strengthening its ties with infrastructure providers. Desco Infratech Limited, a leading engineering and construction services company, has bagged orders worth approximately INR 44.77 crore (inclusive of GST) from Torrent Gas, Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited. These orders will support last mile connectivity and direct marketing activities in Andhra Pradesh, Telangana and Tamil Nadu.
Desco’s order from Torrent Gas is in line with the latter’s aggressive network development plans especially in underserved and emerging markets. Desco, which has seen its stock rise 64.4% from its 52-week low, brings expertise in pipeline installation, commissioning, and O&M—critical components for the timely execution of CGD projects.
Torrent Group’s Broader Financial Landscape
Meanwhile, Torrent Power, another group company, reported a net profit of INR 1,077.2 crore in Q4 FY24, a 141% y-o-y growth, mainly due to deferred tax reversals and transition to new tax regime. Torrent Power also plans to raise up to INR 3,000 crore through non-convertible debentures and has declared a final dividend of INR 25 per equity share.
Conclusion
Torrent Gas IPO is a big moment not just for the company but for India’s city gas distribution space. As the country moves toward cleaner energy sources and expanded access to gas infrastructure, Torrent Gas’s investment-driven growth, strategic diversification into hydrogen, and its debt-light vision position it as a key player in India’s energy transition story. With a robust revenue base, strategic partnerships, and a long-term green energy vision, the company’s market debut will be closely watched by institutional and retail investors alike.
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