DISCOMs Achieve ₹2,701 Crore Profit in FY25, Marking Major Turnaround

• Indian power distribution utilities (DISCOMs) reported a net profit of ₹2,701 crore in FY25, a significant improvement from a ₹25,553 crore loss in FY24 and ₹67,962 crore loss in FY14.
• Aggregate Technical & Commercial (AT&C) losses decreased from 22.62% in FY14 to 15.04% in FY25, indicating improved operational efficiency.
• The Average Cost of Supply–Average Revenue Realised (ACS–ARR) gap narrowed substantially from ₹0.78/kWh in FY14 to ₹0.06/kWh in FY25, reflecting stronger cost recovery.
• Electricity (Late Payment Surcharge) Rules led to a 96% reduction in outstanding dues to generating companies and compressed DISCOM payment cycles.
• Reforms like RDSS, Additional Prudential Norms, and amendments to Electricity Rules contributed to this financial viability and operational improvement.

Why It Matters: DISCOMs achieved profitability in FY25 due to sustained reforms, improved operational efficiency, and better cost recovery.