Discoms back in the black after years

State-run units cut losses by 80% from FY23 to FY25

- SAURAV ANAND

FOR THE FIRST time in several years, the country's power distribution utilities - state-run and private firms combined - reported a consolidated net profit on an aggregate basis in 2024-25, marking a shift in a sector that has long struggled with structural inefficiencies and financial stress.

According to official data, these discoms, including a few yet-to-be unbundled state power departments, together recorded a profit after tax (PAT) of ₹2,701 crore in 2024-25.

The return to profitability came after a loss of ₹25,553 crore in the previous financial year (2023-24), and a much deeper loss of ₹67,962 crore in 2013-14, when the financial position of distribution utilities was under severe strain following the unbundling and corporatisation of state electricity boards.

However, a breakup of the finances of private and state-run discoms was not immediately available.

OFFICIAL SOURCES SAID that while private discoms have consistently reported profits in the three years through FY25, the turnaround has been "driven by" state discoms.