CESC Limited is a key entity within the RP-Sanjiv Goenka Group, one of India's prominent and rapidly expanding conglomerates. Positioned as India's first fully integrated utility company, CESC has a robust presence across the entire power sector value chain, encompassing generation, transmission, and distribution. The company's core operations are segmented into Thermal Power generation, a rapidly scaling Solar Power portfolio, and a widespread Power Distribution network. Its distribution footprint serves over 4.8 million consumers across diverse geographies, including Kolkata, Greater Noida (under its subsidiary NPCL), Chandigarh, and various distribution franchises (DFs) in Rajasthan (Kota, Bharatpur, Bikaner) and Maharashtra (Malegaon). The company operates a significant thermal generation capacity through its plants in Budge Budge, Haldia, and Chandrapur. In a strategic pivot towards clean energy, CESC is aggressively executing a large-scale expansion into renewable power, with clear targets to establish a multi-gigawatt portfolio. This forward-looking strategy is further complemented by a strategic foray into the manufacturing of solar cells and modules, signaling an ambition for deeper vertical integration and a comprehensive role in India's energy transition.

Official Website: http://www.cesc.co.in/

• Consolidated Performance (9M FY26): For the nine months ending December 2025, consolidated gross revenue increased by 10.4% year-over-year (YoY) to Rs 14,735 Cr. Profit After Tax (PAT) grew by 11% YoY to Rs 1,159 Cr.

• Consolidated Performance (Q3 FY26): In the third quarter, consolidated gross revenue saw a 12% YoY increase to Rs 4,099 Cr. EBITDA grew by 3% to Rs 1,036 Cr, and PAT rose by 8% to Rs 304 Cr compared to the same quarter in the previous year.

• Standalone Performance (9M FY26): The standalone entity reported a 2% rise in gross revenue to Rs 7,715 Cr for the nine-month period. PAT showed stronger growth, increasing by 8% YoY to Rs 629 Cr.

• Subsidiary Contributions: Key subsidiaries demonstrated strong performance in Q3 FY26. Noida Power reported a 9.4% revenue increase to Rs 673 Cr and an EBITDA of Rs 103 Cr. Dhariwal Infrastructure and Haldia Energy were significant contributors to profit, with PAT of Rs 70 Cr and Rs 57 Cr, respectively.

The company is delivering consistent top-line growth at the consolidated level, supported by the strong performance of its key subsidiaries, leading to steady bottom-line expansion.

• Fully Integrated Utility: CESC operates across the entire power value chain, from generation (thermal and solar) through to last-mile distribution. This integration provides operational control and revenue stability.

• Diversified Distribution Portfolio: The company manages power distribution across multiple states and under different operational models, including long-term licenses (Kolkata, Noida, Chandigarh) and input-based franchises (Rajasthan, Malegaon), mitigating geographic and regulatory risks.

• Operational Excellence: The subsidiary Noida Power Company Limited (NPCL) is consistently ranked as one of India's top-performing distribution utilities, securing an A+ rating for five consecutive years. This highlights a core competency in efficient distribution management.

• Strategic Asset Base: The company possesses a mix of legacy thermal assets that are operating efficiently and a rapidly growing portfolio of renewable energy projects, positioning it to balance current energy needs with future green energy demands.

CESC's unique position as an integrated utility with a geographically diverse and operationally excellent distribution network provides a stable foundation for its strategic expansion into renewable energy.

• Aggressive Renewable Energy Expansion: The primary growth driver is the massive expansion in renewable energy. The company has a target to build 3.2 GW of capacity by FY29 and scale it up to 10 GW by FY32. Currently, 2,150 MW of projects are under implementation.

• New Project Wins: In Q3 FY26, the company secured two significant projects: a 300 MW Solar + Battery Energy Storage System (BESS) project at a tariff of Rs 2.86/kWh and a 180 MW Round-The-Clock (RTC) project for Indian Railways at a higher tariff of Rs 4.35/kWh.

• Vertical Integration into Manufacturing: CESC is making a strategic foray into manufacturing by setting up a 3 GW Solar Cell & Module manufacturing ecosystem in Greater Noida. This new venture is scheduled to be commissioned in 2027.

• Distribution Network Performance: Growth is also supported by operational improvements in existing businesses. For instance, NPCL reported a 6% YoY growth in power sales during Q3 FY26.

The company's growth trajectory is firmly anchored in a large-scale, well-defined capital expansion into renewable energy generation, supplemented by a strategic move into solar manufacturing.

• Captive Power Offtake: A significant portion of the new renewable capacity is tied to captive demand from CESC's own distribution arms in Kolkata and Noida. This de-risks the investment by ensuring a guaranteed buyer for the power generated.

• High-Value Bids: The company is strategically targeting complex and higher-tariff projects such as Hybrid, Firm and Dispatchable Renewable Energy (FDRE), and RTC bids from government entities, which offer superior returns compared to plain solar projects.

• Solar Manufacturing Value Chain: The planned 3 GW solar manufacturing facility allows CESC to capture more of the renewable energy value chain. It can utilize its own cells and modules for captive projects and capitalize on government policies promoting domestic manufacturing.

• Operational Turnaround: There is a continued opportunity to improve efficiency and reduce losses in its distribution franchises, particularly in Malegaon and Rajasthan, which directly translates to improved profitability.

CESC is capitalizing on de-risked growth opportunities through captive power agreements while strategically positioning itself to benefit from higher-tariff projects and vertical integration in the solar sector.

• High Thermal Plant Load Factor (PLF): The company's thermal assets are operating at high efficiency. In Q3 FY26, the PLF for key plants was strong: Haldia Energy at 87%, Dhariwal Infrastructure at 82%, and Budge Budge Generating Station at 74%.

• Renewable Energy Capex: The first phase of the renewable expansion, totaling 2,150 MW, involves a significant capital expenditure of approximately Rs 14,800 Cr.

• Project-Specific Investment: The first 300 MW solar project in Rajasthan has a capex of ~Rs 1,500 Cr, for which financial closure has already been achieved, indicating robust financial planning and execution.

• Future Capacity: The company is preparing for future growth by having already secured grid connectivity approval for 3.9 GW of its planned 7.8 GW pipeline.

The company's thermal assets are being utilized efficiently, while it is executing a substantial, well-funded capex plan of nearly Rs 15,000 Cr to build out its initial renewable energy portfolio.

• Renewable Energy Roadmap: The company has a clear, time-bound plan to commission its first phase of 2,150 MW of renewable projects between Q4 FY26 and Q2 FY29, with a long-term goal of reaching 10 GW by FY32.

• Solar Manufacturing Commissioning: The 3 GW Solar Cell & Module manufacturing facility in Greater Noida is planned for commissioning in 2027, aligning with the expected increase in demand for domestically produced components.

• Securing Resources: CESC is proactively acquiring land and securing supply chain agreements for its future projects. It has signed agreements for 3,500 MW of wind projects with major suppliers like Inox, Suzlon, and Envision and is in discussions with global OEMs for battery storage systems.

• Focus on Hybrid and Storage: The project pipeline demonstrates a clear focus on more advanced renewable formats, including Solar+BESS and Hybrid projects, which provide more reliable power and command higher tariffs.

CESC has a detailed and aggressive roadmap focused on commissioning over 2 GW of renewable projects by FY29 and establishing a large-scale solar manufacturing facility by 2027.

• Cost Management Initiatives: The company reported achieving significant savings in variable costs related to both fuel and power procurement during the period, which is a key lever for protecting and enhancing profitability.

• EBITDA Growth: Consolidated EBITDA grew 7% in 9M FY26 to Rs 3,433 Cr. While this is slightly below the revenue growth rate, the absolute increase reflects healthy operational performance.

• Operational Efficiency Gains: Margin improvement is evident at the subsidiary level through operational enhancements. For example, Rajasthan DF's EBITDA increased to Rs 30 Cr from Rs 23 Cr YoY in Q3, driven by a reduction in T&D losses.

• Profitability at Subsidiary Level: Noida Power's EBITDA increased to Rs 103 Cr in Q3 FY26 from Rs 90 Cr in the prior year, demonstrating improved profitability in established, well-run distribution areas.

While overall margin expansion is moderate, the company is actively managing costs and driving operational efficiencies, particularly within its distribution subsidiaries, to support profitability.

• T&D Loss Reduction: The company continues to make significant strides in improving operational efficiency in its distribution business. In Q3 FY26, consolidated T&D loss in the Rajasthan franchise was reduced to 11.5% from 14.2% YoY, and in Malegaon, it was brought down to 35% from 37.4% YoY.

• Project Execution Progress: The first 300 MW solar project in Rajasthan is advancing on schedule. Construction is in full swing, 100% of the land has been acquired, PPA has been signed, and key equipment like power transformers have been received on-site.

• Supply Chain Finalization: For its renewable projects, CESC has finalized major contracts. EPC work for solar projects is contracted with Waaree and Sterling & Wilson, while turnkey and supply agreements for wind projects are in place with major domestic manufacturers.

• New Asset Performance: Chandigarh Power, which was acquired in February 2025, is now integrated and contributing positively, reporting a PAT of Rs 5 Cr for the quarter.

The company is demonstrating strong project execution and achieving tangible operational improvements, most notably the significant and consistent reduction of T&D losses across its distribution network.