Reversing several years of losses since unbundling and corporatisation of State electricity boards, India’s power distribution utilities — namely, Distribution Companies (DisComs) and power departments — posted a net profit or positive profit after tax (PAT), primarily led by State-run DisComs trimming their losses by approximately 80% from FY 2023 to FY 2025, a senior official in the Power Ministry told The Hindu.
“One of the main reasons behind this [the overall industry being in net profits] is that the State DisComs’ after-tax losses have come down sharply in these three years, by about 80%,” they stated
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In the financial year 2024-25, India’s power distribution utilities collectively posted a net profit of ₹2,701 crore, the Ministry informed on Sunday (January 18, 2026). For comparable context, the utilities combined had incurred a loss of ₹67,692 crore in FY 2013-14 and had trimmed them to ₹25,553 crore in FY 2023-24.
Officials also expressed confidence that the Electricity Amendment Bill (2026), set to be tabled in Parliament during this Budget Session, would further help spur the trend toward profitability.
Reflecting on the development, Union Minister for Power Manohar Lal, stated, “This marks a new chapter for the distribution sector and is a result of several steps that have been taken to redress the concerns of the distribution sector.”
The Ministry further held that distribution utilities have also accrued an improved show across all performance indicators. The Aggregate Technical and Commercial (AT&C) losses, which is an indicator of losses because of technical inefficiencies, theft, billing inefficiencies, and commercial losses combined, has reduced to 15.04% in FY 2024-25 from 22.62% in FY 2013-14.
Additionally, the difference between the average cost of supply and the average revenue realised (ACS-ARR), has also narrowed from ₹0.78/kilowatt-hour (FY 2013-14) to ₹0.06/kilowatt-hour (FY 2024-25). A lower cost-revenue gap indicates lower operating loss for DisComs with increased ability to recoup their costs.
Further, the Ministry stated the Electricity (Late Payment Surcharge) Rules have contributed to a 96% reduction in outstanding dues to generating companies. It has come down to ₹4,927 crore until January this year from approximately ₹1.35 lakh crore in 2022.
The rules have also brought down distribution utility payment cycles, in other words, billing and payment schedules, to 113 days in FY 2024-25 from 178 days in FY 2020-21.
