CESC Limited, a flagship company of the RPSG Group, stands as one of India's pioneering fully integrated utility companies. With a legacy rooted in powering millions of homes and businesses, the company has a formidable presence across the entire power sector value chain, encompassing thermal generation, renewable power generation, and electricity distribution. Its thermal power assets are strategically located, with key generating stations in Haldia (600 MW), Chandrapur (600 MW), and Kolkata (885 MW), forming the backbone of its conventional energy portfolio.

In a significant strategic pivot towards sustainable energy, CESC is aggressively expanding its renewable footprint through its subsidiary, Purvah Green. The company is developing a substantial portfolio of solar and wind power projects, with an ambitious vision to scale its renewable capacity to 10GW by FY32. This includes large-scale solar projects in Rajasthan and a diversified pipeline of hybrid, wind, and solar+BESS projects across the country.

The distribution arm of CESC is a critical component of its integrated model, serving over 4.8 million consumers across a diverse geography. Beyond its original license area in Kolkata, the company manages distribution franchises in Greater Noida (NPCL), Chandigarh (CPDL), and several cities in Rajasthan (Kota, Bharatpur, Bikaner), as well as Malegaon in Maharashtra. This extensive distribution network not only ensures stable revenue streams but also provides a captive market for its generated power, creating a resilient and synergistic business model. As part of a diversified conglomerate, CESC is positioned to leverage group-level strengths while executing its vision to be a responsive and innovative leader in India's evolving energy landscape.

Official Website: www.cesc.co.in

• Consolidated Performance (FY26): The company demonstrated robust financial health. Gross Revenue grew by 9% year-over-year (YoY) to Rs. 18,927 Cr. EBITDA saw a corresponding 9% increase to Rs. 4,707 Cr. Profit After Tax (PAT) showed stronger growth, rising 13% YoY to Rs. 1,618 Cr.

• Consolidated Performance (Q4 FY26): The final quarter continued the positive momentum. Gross Revenue increased by 4% YoY to Rs. 4,192 Cr. EBITDA grew by a strong 15% to Rs. 1,274 Cr, and PAT increased by 19% YoY to Rs. 459 Cr, indicating improved profitability.

• Standalone Performance (FY26): The core CESC entity reported steady results. Gross Revenue grew 2% YoY to Rs. 9,939 Cr. EBITDA also increased by 2% to Rs. 2,673 Cr, while PAT grew by a healthy 7% to Rs. 852 Cr.

• Key Subsidiary Performance (FY26):

• Noida Power (NPCL): Revenue increased by 8% to Rs. 3,001 Cr, with an impressive 32.3% PAT growth to Rs. 227 Cr.

• Haldia Energy Ltd: Maintained stable performance with revenue of Rs. 2,166 Cr and PAT of Rs. 286 Cr.

• Dhariwal Infrastructure Ltd: Showed strong growth with revenue rising to Rs. 2,250 Cr from Rs. 2,018 Cr and PAT increasing to Rs. 359 Cr from Rs. 313 Cr.

• Chandigarh Power (CPDL): In its first full year of operations post-takeover, it generated Rs. 1,007 Cr in revenue and a PAT of Rs. 25 Cr.

• Balance Sheet Position (FY26): The company's total assets grew to Rs. 46,470 Cr from Rs. 41,010 Cr in the previous year. This was funded by an increase in borrowings, which stood at Rs. 21,319 Cr (vs. Rs. 17,719 Cr in FY25), and retained earnings, with Other Equity rising to Rs. 13,056 Cr.

The company's financials reflect solid top-line growth driven by its subsidiaries and improved operational efficiencies, leading to double-digit profit growth at the consolidated level.

• Fully Integrated Utility: CESC operates across the entire power value chain, from coal mining and thermal generation to renewable energy production and last-mile distribution. This integration provides operational control, cost efficiencies, and a natural hedge against market volatility.

• Diversified Geographical Footprint: The company is not limited to its home base in Kolkata. Its distribution network spans multiple states, including Uttar Pradesh (Greater Noida), Chandigarh, Rajasthan, and Maharashtra. This geographical diversification mitigates regulatory and region-specific risks.

• Proven Turnaround Expertise: CESC has demonstrated a strong capability in improving the operational performance of acquired distribution assets. The consistent reduction of Transmission & Distribution (T&D) losses in challenging areas like Malegaon and Rajasthan showcases a core competency that is difficult to replicate.

• Strategic Renewable Expansion: While maintaining a stable thermal base, the company is aggressively building a large-scale renewable energy portfolio through Purvah Green. This dual focus positions it to benefit from both the stability of conventional power and the high-growth potential of green energy.

CESC's unique combination of being a fully integrated utility with a proven track record in turning around distribution assets and a clear strategy for renewable growth sets it apart.

• Renewable Energy Pipeline: The primary growth engine is the renewables business, Purvah Green. It has a growth vision to reach 3,200 MW by FY29 and 10,000 MW by FY32. The current pipeline includes 2,400 MW of projects with signed Power Purchase Agreements (PPAs) or Letters of Award (LOAs), providing strong revenue visibility.

• New Project Wins: During Q4 FY26, Purvah Green secured two significant projects: a 300 MW hybrid project with CESC Kolkata and a 250 MW wind project with the Solar Energy Corporation of India (SECI). These wins add to the robust execution pipeline.

• Operational Efficiency Gains: Continuous reduction in T&D losses directly boosts profitability. In FY26, T&D losses were reduced across all distribution areas, including CESC Kolkata (to 6.11%), NPCL (to 6.95%), and Rajasthan DFs (to 11.4%).

• Volume Growth in Distribution: Sales volumes are increasing in key distribution areas. NPCL (Greater Noida) recorded an 8% YoY growth in sales volume to 3,888 Million Units (MU) in FY26, indicating rising energy demand in its licensed areas.

The company's growth is being driven by a powerful combination of aggressive expansion in the high-potential renewables sector and sustained operational improvements in its stable distribution business.

• Solar Manufacturing Foray: CESC is making a strategic entry into manufacturing by setting up a 3 GW Solar Cell & Module manufacturing ecosystem in Greater Noida. This backward integration will help secure the supply chain for its renewable projects, capitalize on domestic content requirements (DCR), and serve captive demand.

• Advanced Renewable Projects: The company is moving beyond plain solar and wind projects into more complex and higher-value contracts. Its pipeline includes Round-The-Clock (RTC), Hybrid, and Solar + Battery Energy Storage System (BESS) projects, which command different tariff structures and cater to evolving grid requirements.

• Distribution Privatization: With a proven track record of successfully managing licensed and franchised distribution areas, CESC is well-positioned to capitalize on future government initiatives to privatize state-owned power distribution companies. The successful integration of Chandigarh Power is a recent example of this capability.

CESC is actively creating new opportunities by vertically integrating into solar manufacturing and moving up the value chain in renewable project development, positioning itself for the next phase of energy transition.

• High Thermal Plant Load Factor (PLF): The company's thermal assets operated at high efficiency in FY26. Haldia Energy achieved an impressive PLF of 94.9%, Dhariwal Infrastructure operated at 82.9%, and the flagship Budge Budge Generating Station recorded a PLF of 81.7%.

• Renewable Capacity Roadmap: The company has a clear execution plan for its renewable capacity. Out of a 3,200 MW target by FY29, 2,400 MW is already under implementation or has secured offtake agreements. A 300 MW solar project is currently under commissioning.

• Significant Capex Plan: The execution of the 2,400 MW secured renewable project pipeline involves a planned capital expenditure of approximately Rs. 16,500 Cr. This investment is expected to generate an annualized revenue of around Rs. 2,300 Cr once fully operational.

The company maintains high utilization of its legacy thermal assets while committing significant capital to build out its large, visible pipeline of renewable energy projects.

• 10 GW Renewable Target: The cornerstone of the company's future strategy is to scale its renewable energy portfolio to 10,000 MW by FY32. This represents a massive expansion and a definitive shift towards clean energy.

• Commissioning of Solar Manufacturing: The 3 GW Solar Cell & Module manufacturing facility in Greater Noida is a key strategic initiative. The cell lines are scheduled for commissioning in 2027, aligning with the projected demand for domestically manufactured components.

• Diversified Clean Energy Portfolio: The company plans to build a balanced portfolio of renewable assets, including solar, wind, hybrid, RTC, and Solar+BESS projects. This diversification will mitigate resource intermittency and cater to varied customer needs.

• Continued Focus on Distribution Excellence: The strategy involves continuing to drive down T&D losses and improve operational metrics across all its distribution circles, cementing its reputation as a highly efficient distribution utility.

CESC's future is clearly oriented towards becoming a dominant player in the renewable energy space, complemented by a strategic entry into manufacturing and continued excellence in its core distribution business.

• Consolidated Margin Stability: The company maintained stable operating margins. The consolidated EBITDA margin for FY26 was approximately 25.1% (EBITDA of Rs. 4,707 Cr on Gross Revenue of Rs. 18,927 Cr), a slight improvement from ~24.8% in FY25.

• Standalone Margin Consistency: The standalone business also exhibited consistent profitability, with an EBITDA margin of approximately 26.9% in FY26, nearly identical to the 26.8% recorded in FY25.

• Cost Optimization Initiatives: Margin resilience was supported by active cost management. The company noted that it achieved "significant savings... in variable cost on both fuel and power procurement" during the period, which helped offset other inflationary pressures.

The company has successfully protected its profitability margins through a combination of stable operational performance and effective cost control measures on fuel and power purchases.

• T&D Loss Reduction Across the Board: FY26 saw a notable improvement in operational efficiency across all distribution assets. Malegaon DF achieved a significant reduction in T&D loss to 36.3% from 39.7% a year ago. Similarly, CESC Kolkata, Rajasthan DF, and NPCL all reported their lowest-ever or significantly reduced T&D loss figures.

• Successful Integration of Chandigarh Power: The acquisition of Chandigarh Power Distribution Limited (CPDL) in February 2025 has been a success. In FY26, the entity reported sales of 1,746 MU, revenue of Rs. 1,007 Cr, and a PAT of Rs. 25 Cr, while rapidly reducing T&D loss from 12.5% to 8.3%.

• Renewable Project Milestones: The 300 MW solar project for CESC Kolkata is in the final stages of commissioning. Furthermore, the company has already secured land (4,900 acres) and connectivity (3.8 GW) for a significant portion of its future renewable projects, de-risking the execution pipeline.

Key operational updates confirm the company's strong execution capabilities, particularly in improving distribution efficiency and advancing its renewable energy project pipeline on schedule.