Technical solutions are described for controlling operation of an inverter to manage voltage upon a direct current (DC) bus and regenerative power (current) provided to a battery. A control system and method are provided to control operation of an electric machine using a controller. More specifically, the controller is configured to calculate a current-based torque limit to satisfy a regenerative current limit, and a voltage-based torque limit to satisfy a voltage limit constraint of the DC bus. The controller is configured to calculate a torque limit to satisfy the regenerative current and voltage limits of the DC bus, and to command a plurality of switches within the inverter to generate a direct-axis current from the electric machine corresponding to a torque demand and according to the torque limit. The proposed system and method provide for motor current that exceed a demagnetizing current limit of the electric machine.