The RP-Sanjiv Goenka Group utility major reported steady Q4 FY26 earnings growth driven by distribution efficiency, lower power procurement costs, and expanding renewable energy operations across India.
Q4 FY26 Financial Performance
CESC Limited (NSE:CESC), the flagship power utility company of the RP-Sanjiv Goenka Group, reported resilient earnings growth in Q4 FY26 supported by operational efficiencies across its distribution and generation businesses.
The company posted consolidated revenue from operations of ₹4,096 crore during Q4 FY26, up 5.6% year-on-year from ₹3,877 crore in Q4 FY25. Total revenue rose to ₹4,627 crore compared with ₹4,171 crore in the corresponding quarter last year.
Operating EBITDA increased 15.2% YoY to ₹1,274 crore from ₹1,106 crore, while profit before tax climbed to ₹653 crore against ₹467 crore in Q4 FY25. Profit after tax stood at ₹459 crore, registering 18.9% growth over ₹386 crore reported in the year-ago quarter.
Management attributed the performance to significant savings in fuel and power procurement costs alongside improved efficiencies in distribution operations. During FY26, CESC Kolkata distribution business reduced transmission and distribution loss to an all-time low of 6.11%, while NPCL further reduced T&D losses to 6.9%.
The company also reported healthy momentum across subsidiaries including Noida Power, Haldia Energy, and Dhariwal Infrastructure, which continued delivering strong operational performance during the quarter.
Full-Year FY26 Performance
For FY26, CESC reported consolidated revenue from operations of ₹18,570 crore compared with ₹17,001 crore in FY25, reflecting 9.2% year-on-year growth. Total revenue stood at ₹19,830 crore against ₹18,624 crore in the previous financial year.
Operating EBITDA increased to ₹4,707 crore from ₹4,312 crore in FY25, while profit before tax rose to ₹2,119 crore against ₹1,783 crore a year earlier. Consolidated PAT climbed 13.2% to ₹1,618 crore compared with ₹1,429 crore in FY25.
The company’s standalone Kolkata distribution business generated revenue of ₹9,939 crore with PAT of ₹852 crore during FY26. Noida Power also delivered strong growth, reporting revenue of ₹3,001 crore and PAT of ₹227 crore for the year.
CESC’s renewable platform, Purvah Green, emerged as a major strategic growth driver during FY26. The company secured new renewable projects including a 300 MW hybrid project with CESC Kolkata and a 250 MW wind project with SECI. Its renewable pipeline now targets 3.2 GW by FY29 and 10 GW by FY32.
Strategic Moves
During FY26, CESC accelerated expansion across its renewable energy business through Purvah Green. The company currently has 2,400 MW of renewable projects under implementation and aims to establish a 3 GW solar cell and module manufacturing ecosystem by 2027 in Greater Noida.
The company also continued strengthening operational efficiencies across its distribution franchises. Rajasthan distribution franchise reduced T&D losses to 11.4%, while Malegaon distribution franchise improved losses to 36.3% through vigilance and network improvement initiatives.
Additionally, the 300 MW solar project for CESC Kolkata entered commissioning stage during the quarter, supporting the company’s long-term clean energy transition roadmap.
Technical Summary
CESC shares traded near ₹186.97 after gaining 1.06% in the latest session while remaining firmly above the 50-day SMA near ₹163.6. RSI stood around 62, indicating sustained bullish momentum despite mild cooling from overbought levels. Elevated trading volumes reflected continued investor interest following the recent sharp rally.
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Conclusion
CESC delivered a stable FY26 performance backed by strong utility operations, lower distribution losses, and expanding renewable energy capacity. The company’s aggressive clean energy roadmap and improving operational efficiencies across distribution businesses strengthen long-term growth visibility. Execution of large renewable projects and manufacturing expansion will remain key drivers for future performance.
FAQs
- What supported CESC’s Q4 FY26 earnings growth?
Lower fuel and power procurement costs, reduced distribution losses, and strong subsidiary performance helped drive CESC’s profit growth during Q4 FY26. - What is CESC’s renewable energy expansion target?
Through Purvah Green, CESC aims to scale renewable capacity to 3.2 GW by FY29 and 10 GW by FY32 across solar, wind, and hybrid projects. - How did CESC’s distribution business perform in FY26?
CESC Kolkata achieved record-low T&D losses, while Noida, Rajasthan, and Chandigarh operations also improved efficiency and sales performance during FY26.