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Discoms back in the black after...

Financial Express Delhi

January 19, 2026

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.

The distribution segment has historically been the weakest link in the power value chain, with high technical and commercial losses, delayed tariff revisions and mounting dues to power generators affecting the financial health of the entire sector. The positive PAT in FY25 is being seen as a turning point after years of persistent losses.

“Private discoms were already profitable and have remained so.

“The real shift has come from state discoms sharply reducing their losses. Between FY23 and FY25, losses at state discoms have fallen by nearly 80%. This is what has pushed the overall power distribution sector into positive profit territory for the first time, reflecting state discoms finally beginning to repair their financial performance,’ said a power ministry official on the condition of anonymity.

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