MANAGEMENT DISCUSSION AND ANALYSIS REPORT
(Annexure A to the Boards Report)
CESC Limited (CESC or the Company) is a flagship company of the RP-Sanjiv Goenka Group (the Group). It is an integrated power utility engaged in the generation and distribution of electricity across 567 square kilometres of its licensed area-Kolkata, Howrah, Hooghly North and South 24 Parganas in West Bengal-supplying safe, cost-effective and reliable electricity to its 3.78 million customers. The Company through its subsidiaries, also has a portfolio of independent power generation projects and distribution ventures in other parts of the country
This chapter presents an overview of the macroeconomic environment—especially as it relates to energy market dynamics-as well as the operational and financial performance of CESC. It also discusses important initiatives taken by the Company and its subsidiaries during the year to achieve its growth and performance objectives.
ECONOMIC OVERVIEW
Global Energy Scenario
Despite the geopolitical tensions and challenges posed by the US tariff policies in 2025, global energy markets witnessed remarkable stability-with energy prices gradually retreating from its highs following the Russia- Ukraine conflict. The World Banks energy price index1 came down to 90.0 in 2025, compared to 101.5 in 2024 and 152.6 at the start of the Russia-Ukraine conflict in 2022. Prices were expected to remain stable and economic outlook for 2026 was positive.
But this was before the war started in the Middle East at the end of February 2026. Attacks on energy and shipping infrastructure as well as blockades on transit through the Strait of Hormuz, which handles about 35% of global seaborne crude oil trade, has severely disrupted global energy markets. The supply shock has resulted in a surge in global energy prices — with the World Banks energy price index jumping from 82.9 in Dec 2025 to 130.9 in Mar 2026.
While the situation should moderate as hostilities wind down, commodity prices are expected to remain high in 2026 with soaring energy and fertilizer prices, as well as those for several key metals. According to the World Banks latest Commodity Markets Outlook released on 28 April 2026, the energy price index is expected to increase by 24% from 90.0 in 2025 to 111.3 in 2026.
This will impact the global economy which was already going through the fallout of trade and tariff policies of the US, not to mention the lingering conflict in Ukraine — again throwing it off a sustained growth path. In this scenario, a few trends in global energy markets are worth noting.
First, developing countries now drive incremental demand for energy. As China saturates, this will be increasingly led by India and Southeast Asia, as well as countries in the Middle East, Latin America and Africa. Second, the structural shift in energy mix away from fossil fuels, especially oil and gas, is likely to intensify further in favour of renewable technologies, led by solar PV. There is also a renewed interest in nuclear. Third, the biggest gainer will be electricity which is at the heart of modern economies — with growing demand from consumer households, as well as advanced manufacturing and AI. It also fits neatly with policy agenda for clean energy.
According to the World Energy Outlook 2025 released by the IEA in October 2025, total primary energy demand under the Stated Policies Scenario (STEPS)2 will grow by 93 exajoules3 (EJ) — from 654 EJ in 2024 to 747 EJ in 2050 (see Chart A) — at a compound annual growth rate (CAGR) of 0.5%. Advanced economies4 will see their demand come down from 204 EJ to 188 EJ during the same period — resulting in a decline in their share of world energy demand to 25% by 2050.
A considerable part of the rise in global energy demand between 2024 and 2050 will come from India. Indias energy demand is projected to increase by 29 EJ — at a CAGR of 1.8% — from 48 EJ in 2024 to 77 EJ in 2050 (see Chart B). In contrast, energy demand from the other two major consumers — China and the US — is projected to remain stable. Overall, China, US and India will continue to be the top three consumers of energy in the world in 2050, with their shares being 22.7%, 12.2% and 10.4%, respectively.
In terms of energy sources, fossil fuels — coal, oil and gas — will continue to be dominant, though their share in global energy mix will come down considerably from 79% in 2024 to 58% in 2050 (see Chart C). This is primarily due to renewable technologies, which will grow from 83 EJ in 2024 to 233 EJ in 2050. Notably, renewables will replace demand from coal and oil-based energy sources. As a result, share of renewables will increase disproportionately from 13% in 2024 to 31% in 2050. Nuclear will also increases its share in the global energy mix during this period.
As noted above, an important facet of this change is the rise in electricity demand — driven in varying proportions by appliances and air conditioners, electrified heating and electric mobility as well as advanced manufacturing, data centres and AI. On the supply side, this is aided by policy commitments as well as better project economics of clean energy systems such as solar PV modules and batteries. The current geopolitical environment should further strengthen the green energy ecosystem as economies look to diversify and derisk their energy mix away from oil and gas.
Under the Stated Policies Scenario (STEPS), electricity generation is expected to grow at a CAGR of 2.4%-roughly five times the growth in total energy demand-from 31,229 terawatt hour (TWh) in 2024 to 58,081 TWh in 2050. It is also worth noting that under scenarios that assume more aggressive policy action5 by governments to achieve climate goals, the shift towards electricity will be even more decisive.
This increase in electricity generation between 2024 and 2050 will see a significant change in the fuel mix. As shown in Chart D, share of fossil fuels in electricity generation is expected to come down significantly from 59% in 2024 to 21% by 2050. In contrast, renewable sources — solar, wind, hydro and modern bioenergy-will become the dominant source of power, accounting for 69% of the total power generation by 2050.
Indias Power Scenario
Electricity demand in India was muted in 2025-26 due to an extended monsoon season, suppressing cooling demand that typically drives peak electricity consumption in summer months. During the year, demand increased marginally by 14 billion units (BU) — from 1,694 BU in 2024-25 to 1,708 BU in 2025-26. Chart E presents the data for last five years which reflects stable growth during this period. Equally important, most of this demand was met by the system, with a shortfall limited to 0.5 BU or about 0.03% of the total demand in 2025-26 versus a deficit of 0.1% in the previous year.
Power generation capacity also increased, with the addition of 57.5 GW in 2025-26 — reflecting a 12.1% growth over last year. This increase in capacity was led by renewable sources (includes Hydro), which accounted for 94.9% of this increase — growing from 220 GW in 2024-25 to 275 GW in 2025-26. As a result, share of renewable power grew to 51.6% by the end of 2025-26. Total generation capacity in India stood at 533 GW at the end of 2025-26. Table 1 gives the details.
Table 1: Power Generation Capacity in India: 2025-26, By Fuel Source
Fuel |
MW | % Share | Growth (%) |
Coal & Lignite |
2,28,560 | 42.9% | 3.0% |
Gas |
20,122 | 3.8% | -18.0% |
Diesel |
589 | 0.1% | 0.0% |
Thermal |
2,49,272 | 46.8% | 0.9% |
Nuclear |
8,780 | 1.6% | 7.3% |
Hydro (Large) |
51,415 | 9.7% | 7.7% |
Other Renewables |
2,23,273 | 41.9% | 29.5% |
(Other than large Hydro) |
|||
Total |
5,32,740 | 100.0% | 12.1% |
Source: Central Electricity Authority
As shown in Table 2, the peak demand for power in 202526 was 245 GW, marginally lower than 250 GW recorded in 2024-25. The demand-supply situation remained balanced with the peak power supply meeting the demand at the all-India level. No state or union territory had a peak power deficit exceeding 5% in 2025-26.
Table 2: Power Demand and Deficit: 2025-26
Region |
Peak Demand (MW) | Peak Met (MW) | Deficit | Deficit % |
Northern |
91,335 | 90,772 | 563 | 0.6% |
Western |
83,081 | 83,081 | 0 | 0.0% |
Southern |
73,805 | 73,805 | 0 | 0.0% |
Eastern |
33,527 | 33,452 | 75 | 0.2% |
North-Eastern |
4,157 | 4,157 | 0 | 0.0% |
All India |
2,45,444 | 2,45,416 | 28 | 0.0% |
Source: Central Electricity Authority
Macroeconomic Outlook
Global economy reflected tremendous resilience in 2025 despite headwinds from shifting trade policies, particularly the tension between the US and China. According to the IMF, world output grew at 3.4% in 2025, same as the previous year. And until recently, the outlook for 2026 remained positive. Driving this positive outlook was benign inflationary expectations, fiscal space and broadly accommodative financial conditions in major economies, as well as burgeoning private sector investments in US and parts of Asia in technology and AI.
But this environment abruptly changed following the war in the Middle East. While the duration and scale of the conflict will determine the ultimate shock to the global economy, immediate surge in energy prices and broader impact on commodities, including fertilizers and food is already underway. In its latest review in April 2026, the IMF expects world GDP growth to decelerate to 3.1% in 2026. This is a 20 basis points cut compared to 3.3% growth projected in its previous update in January 2026. The deceleration in growth will be more pronounced in the Emerging Market and Developing Economies, compared to the Advanced Economies.
India also witnessed stable performance during the year. According to the Second Advance Estimates released by the National Statistical Office (NSO) in February 2026, Indias Gross Domestic Product (GDP) grew at 7.6% in 2025-26, compared to 7.1% in 2024-25. All key sectors of the economy contributed to this performance.
Although India will continue to be the fastest growing large economy in the world, it will be impacted by the war given its dependence on energy imports, especially for oil and gas. Apart from elevated crude oil prices, disruption in global commodity markets and fertilizers can impact manufacturing and agricultural output. Inflation and uncertainty can further impact domestic demand, especially those on discretionary spend, whereas weak global prospects may dampen external demand. Taking these factors into account, the RBI, its latest Monetary Policy Report released in April 2026, has pegged Indias GDP growth in 2026-27 at 6.9%.
KEY HIGHLIGHTS
CESCs system demand for Kolkata operations remained stable during the year at 12,068 million units (MU) in 2025-26 and a peak demand of 2,572 Mega Watt (MW).
Chart F provides quarterly power requirement for 202425 and 2025-26. Demand was particularly subdued in Q1 (Apr-Jun) due to a milder summer resulting in lower requirement for cooling.
CESC reported creditable results for 2025-26. Total income (including other income) of CESC as a standalone entity grew by 1.8% from Rs.9,765 crore in 2024-25 to Rs.9,939 crore in 2025-26. Total expenses during the year declined by 5% from Rs.9,838 crore in 2024-25 to Rs.9,349 crore in 2025-26. As a result, standalone profit before taxes (PBT), after incorporating regulatory income, improved by 5.9% from Rs.1,062 crore in 2024-25 to Rs.1,125 crore in 2025-26. Standalone profit after taxes (PAT) stood at Rs.852 crore in 2025-26, compared to Rs.800 crore in 2024-25. Further details are available in the section on Financial Results.
Ensuring uninterrupted supply of electricity, while maintaining high service levels continues to be the overarching objective at CESC. Initiatives to improve efficiencies in Generation, Distribution and Customer Service are covered in respective sections of the report.
CESC has a well laid-out strategy for growth and has taken concrete steps to achieve it. This consist of independent generation projects, including recent foray in renewables energy (RE) business with a target capacity of 10 GW by 2031-32 through a mix of solar, wind and hybrid projects. Further details on this are provided in the section on Renewable Energy. It also operates distribution businesses outside Kolkata, which are discussed in the section on Distribution Ventures.
BUSINESS PERFORMANCE
CESCs businesses comprise the Kolkata operations as well as other generation and distribution ventures:
• Kolkata Operations: Distribution of electricity, with its own generation facilities, across the licensed area in Kolkata, Howrah, Hooghly, North and South 24 Parganas, West Bengal. Other than the 600 MW plant at Haldia, which is under its 100% subsidiary Haldia Energy Limited (HEL), the operations are directly under CESC Limited.
• Generation Projects: Thermal and renewables projects owned and operated by various subsidiaries of CESC (excluding HEL). At the end of 2025-26, cumulative generation capacity of these projects stood at over 650 MW, whereas 2400 MW of renewable projects were under implementation at the end of 2025-26 in Rajasthan, Madhya Pradesh. Karnataka and Andhra Pradesh through its subsidiaries. Out of 2400 MW, 296 MW has been commissioned since the close of the year.
• Distribution Ventures: Distribution licences for
Greater Noida (Uttar Pradesh) and Union Territory of Chandigarh; three distribution franchisees (DFs) in Kota, Bharatpur and Bikaner in Rajasthan; and the DF in Malegaon, Maharashtra. These are operated by CESCs subsidiaries.
KOLKATA OPERATIONS
Generation
CESC operates a 750 MW generating station at Budge Budge (BBGS) and a 135 MW generating station at Garden Reach (Southern). In addition, HEL, a 100% subsidiary of the Company, operates a 600 MW generating station at Haldia. HEL has a long-term power purchase agreement (PPA) for selling its power to CESC. During the year, total generation from these three plants was 10,723 Million units (MU), out of which 10,354 MU or 96.6% of the total generation in 2025-26 came from BBGS and HEL. HEL ranked 1st in PLF wise all India ranking for thermal generating stations in India as per CEA report for 2025-26.
Table 3: Performance of Key Generating Stations
Plant |
Capacity | 2025-26 |
2024-25 |
||||
| (MW) | PAF% | PLF% | Gen (MU) | PAF% | PLF% | Gen (MU) | |
Budge Budge (BBGS), CESC |
3 x 250 | 96.8 | 85.3 | 5,368 | 96.2 | 89.5 | 5,489 |
Haldia, HEL |
2 x 300 | 99.3 | 96.7 | 4,986 | 97.0 | 92.9 | 4,790 |
RAF: Plant Availability Factor. PLF: Plant Load Factor
Table 3 presents data on performance of the two key generating stations — BBGS and HEL. Both stations are certified in respect of Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001), Occupational Health & Safety Management Systems (ISO 45001), Energy Management Systems (ISO 50001), Information Security Management Systems (ISO 27001) and Business Continuity Management System (ISO 22301).
CESC has been at the forefront of using best-in-class technology and digital interventions to effect improvements in several key areas such as operations, maintenance, safety and asset management. Key projects undertaken in 2025-26 are presented in Box 1.
Box 1: Driving Efficiencies in Generation — Key Projects
• Sankalp 2.0-Culture of Inspiring Excellence was extended for improvement of operational efficiency through Cross Functional Teams (CFTs) to improve KPIs of power plants over a period of five years and sustaining these gains. This helped in reduction of losses and improving operational efficiencies in all thermal power plants.
• Param Sankalp - Raising Bar of Excellence implements a medium to long term strategy to enhance performance. This follows a run-repair-replace strategy with a 360-degree view over multiple years to enhance operational life of assets and overcome challenges associated with operating ageing fleets under the current flexible operational regime. This also helped to formulate unit running strategy based on Run, Repair and Replace and equipment Maintenance strategy on:
i. Fit to Service
ii. Fit for Service
iii. Fit ever Service
• Samarth 2.0-Analytics Driven Solutions was launched with the goal to develop in-house data analytics capabilities in data and analytics driven decision making. It instituted an Analytics Centre of Excellence (ACOE) to promote capacity building in advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML). Under this project, team ACOE has developed and deployed more than 60 in-house advanced analytics models and innovative solutions for reliability and efficiency improvement to support data driven real-time decision making.
• Drishti-Process Standardization was implemented with the goal of involves driving consistent processes across all CESC plants, standardising ways of working, monitoring and tracking of right KPIs and performance metrics to make the organization ready to implement a full scope ERP for its operations. A KPI dashboard has also been developed to track the progress and improvement.
• Saksham-Community of Interest (COI) is the initiative that was planned to create a common platform "Saksham" for knowledge sharing, expert advice and solutions in troubleshooting, root cause analysis and best practices, to resolve any technical issue timely for early restoration. A total of 14 COI groups covering more than 100 experts from plants and corporate functions are currently operational. These groups have collectively resolved more than 300 technical issues in 2025-26.
Over the years, CESC has excelled in environment and sustainability. It is striving hard to generate electricity with optimum use of fossil fuel and reduction in Green House Gases (GHG). Its climate change mitigation strategy for generation business focuses on Auxiliary Power Management, Improvement on Process Efficiency and Optimisation of GHG and Air Emissions. Both BBGS and HEL plants continue to achieve 100% utilisation of ash in an environment friendly manner and optimise their water usage by reducing consumption, reusing and recycling wherever possible.
BBGS is a zero liquid discharge (ZLD) plant. In HEL, approximately 225 acres of land (75% of total plant area) is covered under rainwater harvesting — with 800,000 cubic meters of rainwater being utilized for plant operations. During the year, water audits were conducted at three generation sites to assess current water usage patterns and identifying opportunities to further improve efficiencies. Projects are now being planned to drive identified water conservation efforts.
CESCs Miyawaki Forestation Efforts for Carbon Sequestration were recognized at the 30th Conference of the Parties (COP30) organized by UNFCC held in Belem Brazil. The project has been featured in COP30 Booklet of Cases for Sustainable Business (SB) under the Nature-based Solutions Working Group by CN. This acknowledgment highlights the significant impact of their initiatives aimed at restoring biodiversity and enhancing ecological resilience.
In an important initiative, preparation of the CESC Generation GHG inventory was completed during the year. This requires a systematic approach to accurately quantify emissions associated with the generation facilities operated by CESC. In another project, Paper Recycling Points at BBGS were developed in alignment with Sustainable Development Goals. In 2025-26, around 6,600 and 2,100 saplings were planted at HEL and BBGS respectively, taking the total tree plantation at both the plants to well over 1 lakh each. HEL has the distinction of having over 30% of its plant area under green cover. This includes Nabagraha Vatika at HEL to promote biodiversity by planting various species of indigenous trees known for their cultural significance and ecological contribution.
CESC won several awards and recognitions in 2025-26 that underscore its achievements in the areas of environment and sustainability. This includes 9th edition of CII National Energy Efficiency Circle Competition Award 2025. BBGS received (i) GEEF Global Environment Award 2026 for Environment Management, (ii) 19th ICC Environment Excellence Awards 2025, (iii) CEE 3rd National Power- Gen Leadership Awards 2025 (ESG category) at Flexible Operations in Thermal Power Plants, and (iv) CEE 4th National Power-Gen Water Management Award 2026. HEL received (i) Corporate Energy Management of the Year of AEEs 2025 Regional Awards - Asia Subcontinent Region at Atlanta, USA, (ii) 19th CII-ITC Sustainability Awards by Honourable Vice President of India in July 2025, and (iii) Best Sustainability Initiative of the Year Award - 2025 at the Global CSR and ESG National Conference, organized by Narayan Seva Sansthan and Brand Honchos.
DISTRIBUTION
CESCs distribution infrastructure serves about 3.78 million customers in Kolkata, Howrah, Hooghly, North and South 24 Parganas in the state of West Bengal. The demand for power is quite variable in its licensed area, with the Company having registered a peak demand more than 2700 MW and a lean demand lower than 500 MW in recent years.
During periods of high demand, CESC also imports power to complement its own generation (including from HEL). Conversely, it exports surplus power, when possible. Banking of power is also done with other licensees to facilitate availability of power during periods of high demand.
In 2025-26, demand was subdued due to a milder summer resulting in lower requirement for cooling. As a result, the peak power demand was 2572 MW, compared to 2728 MW in the previous year. Total energy requirement remained stable at 12,068 million units. About 82% of this requirement was met by CESCs own generation, including HEL.
CESC undertakes continuous upgradation of its distribution infrastructure to maintain the quality and reliability of supply as well as to reduce downtime, overloads and distribution losses. Over the years, CESC has achieved high degree of automation through its investments in technology and equipment, resulting in faster restoration in case of supply interruptions. Given the rise of technology-based solutions, one area which becomes very important is cybersecurity. CESC has a comprehensive Cyber Crisis Management Plan (CCMP) and is compliant with ISO 27001.
CESC is at the forefront of deploying advanced technology and innovations to provide better services to its customers. Some of the key initiatives in 2025-26 were:
• A five-year import network augmentation plan (202627 to 2030-31) has been finalized after joint planning with appropriate authorities. This considers typical annual demand growth as well as projected increase in renewable energy sourcing. Internal network optimisation is also underway to address needs of the high demand hot spots based on distance from import points.
• Given the intermittence of RE power, the Company is in the process of installing a grid-connected 40 MW/80 MWh BESS at one of its substations to develop capabilities in flexible operations. Furthermore, it is contemplating installing grid-connected MW scale BESS projects at strategic locations.
• Installation of RF-mesh Smart meters and 4G Cellular Smart meters is an ongoing effort to facilitate remote billing, outage management, credit control and pinpointing thefts in high-loss areas. Proactive deployment of 4G Cellular Smart meters is underway for replacement old AMR meters operating on 2G to prevent technology obsolescence ensuring business continuity. Around 8,800 smart meters were installed in 2025-26. An important breakthrough achieved in this context was development of interoperable system for capturing data from meters of different OEMs.
• Substantial capacity has been unlocked at existing stations by swap over and relocation of underloaded power transformers, appropriate network reorganisations as well as augmentation of underrated cables. This will help in better asset utilisation, loss optimisation and enhancing power handling capacity of the system.
CUSTOMER SERVICE
CESCs ongoing journey to redefine Customer Service and enhance customer experience involves a strategic blend of technology, data-driven innovation, and humancentric design. During the year, the Company focused on enabling seamless, intuitive and proactive customer interactions, strengthening adoption of self-service options and improving responsiveness at scale. The year also saw a shift in approach from transactional service delivery to personalised, insight-led engagement that align better with evolving customer expectations and the Companys long-term digital vision. Key highlights include:
• New Connections, Billing and Payment: During 2025-26, CESC added about 85,749 new connections, maintaining an average turnaround time of 1-2 days. In cases where infrastructure was readily available, electricity supply was typically energised within 24 hours of completion of formalities and payment.
The Company continues to offer a complete range of secure and convenient payment options, thereby improving convenience and payment discipline. By March 2026, digital channels accounted for an all-time high approx. 88.3% of total bill payments, contributing approx. 94.5% of the overall revenue collection.
• Digitalising Customer Experience: The Companys 24x7 centralised call centre is powered by a state-of- the-art cloud based IVR and Multilingual Voice Bot, which serves as the primary interface for addressing customer queries and complaints. During the year, customer issue registration using digital channels recorded an all-time high of about 83% of total complaints-including IVR, web chat, WhatsApp, and multilingual Voice bot-up from about 80% in the previous year. Further, nearly about 12 lakh consumers have opted for WhatsApp-based services.
• Supply Reliability and Complaint Management:
CESCs robust systems ensure reliable power supply, supported by a 24x7 Control Room and GPS-linked mobile vans for prompt response. The Company has been strengthening its complaint resolution mechanisms through robust governance and technology-driven process improvements. The structured CAPA framework, RPA-enabled process optimization, and SOP-based unified customer communication have reduced supply and commercial complaints.
• Promotion of Sustainability: CESC is committed to sustainability and demand side management during peak summer, and it uses targeted communication campaigns to promote responsible electricity usage. The Company facilitates green tariff adoption for consumers opting for renewable energy, procuring green energy from sources like wind, solar etc. Robust regulatory oversight ensures authenticity and transparency, building customer confidence in green energy consumption. As of March 31, 2026, around 116 consumers have enrolled in the programme, utilizing about 131.05 MU of green energy during the year.
• Rooftop Solar Initiatives: CESCs rooftop solar initiatives are aligned with the Government of Indias PM Surya Ghar: Muft Bijli Yojana and the nations Net Zero emissions target by 2070, reinforcing its commitment to Renewable Energy (RE) integration and ESG objectives. During FY 2025-26, CESC processed 1,449 rooftop solar applications and facilitated 764 installations. The Companys digital, consumer-centric processes have further accelerated adoption of clean energy. Increased rooftop solar integration will support peak demand shaving and contribute towards fulfilling renewable obligations, while advancing CESCs sustainable energy transition.
• Social Media and Branding: CESCs social media presence spans platforms like Facebook, Twitter, LinkedIn, Instagram, and YouTube, connecting with diverse consumers based on interests and age. The content strategy highlights the Companys contributions to Kolkatas development, legacy, CSR efforts, employee lives, and consumer voices. CESC remains Indias most followed utility brand on Facebook, with over 4 lakh followers. In 2025-26, around 99.7% of customer queries were answered within 5 minutes using the Gen AI powered social media response system, with an average response time of just about 1 minute. Overall social media reach of its content during the year was around 175 million.
As noted above, digital engagement and innovation are the cornerstone of CESCs strategy to transform customer experience. Significant initiatives in these areas of are presented in Box 2.
Box 2: Transforming Customer Experience Through Digital Engagement and Innovation
During the year, CESC has launched Project DICE (Digitally Integrated Customer Experience) — to build a unified, AI- enabled customer experience ecosystem, enabling seamless omnichannel interactions across Chatbot, WhatsApp, Voice, Email, Social Media, along with website and mobile app enhancements. The program integrates Bot customer journeys — including new connections, billing, payments, and complaints — into a GenAI-powered conversational framework with multilingual support, smart routing, and faster resolution. Several digital initiatives aimed at enhancing service delivery and engagement are introduced:
• Customer Loyalty Program: CESCs "E Points" digital rewards program continued to gain strong momentum during the year, with registered customers growing from 47,000 in 2024-25 to over 1.1 lakh in 2025-26. The program also witnessed over 3,000 redemption transactions across diverse partner brands, reinforcing customer engagement and success.
• Revamped Mobile Application: During the year, CESCs mobile application strengthened customer experience by piloting Outage Management Vehicle (OMV) — a first of its kind service in the Indian DISCOM industry — enabling real-time tracking of supply restoration teams thus driving improved accountability and faster resolution. This continuous focus on usability and reliability resulted in improved customer satisfaction, with the apps Play Store rating rising to 4.2, signalling growing trust and acceptance.
• AI Powered Website: CESC has embarked on a comprehensive overhaul of its corporate website, anchored in AI- powered capabilities to deliver a seamless, responsive experience across devices. The platform incorporates AIled search and smart FAQs for faster query resolution, along with OCR-enabled self-meter reading. The upgrade is currently under testing, and the rollout will be done in a phased manner.
• AI Powered Voice of Customer and Analytics: At the heart of CESCs digital transformation is its dynamic e-Voice of Customer (e-VoC) program. Leveraging Gen AI based real-time analytics, it captures customer sentiments, preferences and concerns to drive ongoing service enhancements. Continuous detractor outreach and feedback analysis ensure swift action and closure on pain points. These insights have led to a noticeable upliftment in Net Promoter Score, a globally acknowledged customer loyalty metric, reflecting growing customer trust.
• Customer Experience Data Lake: The customer experience Data Lake complements creation of a Machine Learning based centralized data platform with 360-degree customer insights visibility, complaint analytics, realtime advanced insights, strengthening decision-making and positioning CESC as a data-driven, future-ready utility.
CESCs commitment to digital transformation, customer experience, and operational excellence have been recognised through several prestigious awards. In 202526, it won the Gold in the Change Management for Improved Consumer Service category at the All India Discoms Association (AIDA) Annual Awards 2025. It was the second runner-up in Best Distribution Company Promoting Consumer Awareness (Private + PPP)category at the Independent Power Producers Association of India (IPPAI) Power Awards 2026.
SAFETY AND HEALTH
CESC is committed to maintaining high standards of industrial sa fety across its operations. The Company ha s a safety vision, principles, pledge and policy, including a policy on use of personal protective equipment. During the year, SGS received the Gold Certificate at the 7th ICC
National Occupational Health & Safety 2025 and BBGS received the ICC OHS Platinum Award and CII SHE Certificate of Appreciation
All key thermal generating stations, including generation stations of its subsidiary companies — BBGS, Southern, HEL and Dhariwal are certified to ISO 9001, ISO 14001, ISO 45001, ISO 50001 and ISO 27001, reflecting our commitment to quality, environmental stewardship, occupational health and safety, and energy management. Through a zero-incident safety culture and continuous improvement initiatives such as KAIZEN and 5S, we strive for operational excellence and a consistently safe workplace.
During the year, workplace safety shifted to a proactive, data-driven safety approach integrating mental, physical, and digital aspects to achieve "Zero Incident". Key Initiatives taken to improve the safety culture is provided in Box 3.
Box 3: Generation Safety Highlights & Strategic Initiatives
• Data-Driven Safety (Safety Analytics): Unsafe act and unsafe condition reporting conducted by all employees and contractor employees. All Observation being analysed Utilizing Pareto analyses to track unsafe condition and identify high-risk zones and take action before injuries occur.
• AI based Safety Monitoring: AI Powered Detection of PPE Violation through Analysis of CCTV Footage implemented at all Generating station. Automated PPE violation image captured and shared with relevant team for corrective action.
• Modernized Training: Implementing Virtual Reality (VR) simulators for high-risk tasks to improve retention and worker response.
• Safety Kiosk installation: A self-operating, touchscreen station that delivers safety education, training modules, assessments, and emergency procedures to employees, contractors, or visitors at the Main Gate entry.
• High Visibility Tour (HVT): HVT initiative has been introduced leaded by Station Head. This program aims to leverage our extensive experience and best practices across the generation division.
• Saksham- Community of Interest (COI) - A Community of Interest (COI) is the Initiative that are taking to create a common platform "Saksham" for knowledge sharing, expert advice and solutions in troubleshooting in the Safety parlance.
• Monthly Safety Theme: Standardisation of monthly drive to improve Safety amongst all the Generating Stations simultaneously. This has helped to identify & mitigate the key risk across thermal generation. Monthly safety themes (~95% compliance)
• Emergency Preparedness: Emergency preparedness measures, including Safety & fire drills and first aid training, were also carried in specific intervals.
• Reward & recognition: Awarded employees and contractor persons for Best Safety practice adoption & various safety initiatives taken.
• HAZOP Study conducted at all Generating Station to proactively identify safety hazards, potential accidents, and operational bottlenecks caused by process deviations or human error.
• Continuous improvement in safety standards and practices through Central Safety Committee Meeting at site, Quarterly Safety review meeting by Leadership Team from Corporate.
The Safety Department and HRD Department have been instrumental in training the workers, implementing safe work procedures and monitoring unsafe situations. Besides, officers have undergone safety-related training by institutions of national and international repute like DuPont, Bureau Veritas and Jadavpur University. Job site audits, safety observation, safety communication meetings, safety workshops, hand holding exercises at sites and observation of Safety Day are other activities that have contributed to promoting a safety culture in the organisation.
CESC has a structured communication system for coverage of its safety related initiatives, which includes its web-based monthly newsletter Safety Spotlight. To educate customers on electrical and fire safety, the Company sends safety mailers and showcases decorated safety tableaus in its licensed area along with distribution of safety leaflets.
CESC has a strong focus on health and well-being of its employees. It offers medical insurance and hospitalization support for officers and their families, along with access to in-house medical services that provide free OPD consultations and medicines through partner chemists. A Family Medical Benefit Scheme extends to serving employees, their spouses, two dependent children, retired employees and their spouses, as well as dependent parents. CESC also conducts annual health check-ups, periodic investigations and follow up for employees suffering from comorbidities.
GENERATION PROJECTS
Apart from plants catering to Kolkata operations, CESC has built independent generation capacities to benefit from the opportunities in the sector and build capabilities in the renewable energy space. This includes two thermal power projects with a capacity of 600 MW and 40 MW, as well as a solar power project with a capacity of 18 MW DC.
As a part of its strategy for growth, CESC is building its presence in the renewables energy (RE) sector — with a planned renewable capacity of 3.2 GW by 2028-29 in Phase 1 and an overall capacity of 10 GW by 2031-32, i.e, by the end of Phase 2. These projects will be carried out through its subsidiary Purvah Green Power Private Limited (Purvah), which serves as the dedicated platform for renewable energy investments and project development.
Purvah is established as a holding company for utility- scale renewable assets, spearheading CESCs foray in the RE space by developing large-scale solar, wind, hybrid,
and battery energy storage projects across India. It has a platform ready for participation in bids for various formats invited by Renewable Energy Implementing Agencies (REIA) and distribution companies, including solar, wind, hybrid, firm and dispatchable renewable energy (FDRE) and Round the-Clock (RE-RTC). It also has a strong and experienced RE team in place to drive the business and achieve these targets.
Purvah has actively participated in renewable energy tenders issued by leading agencies such as Solar Energy Corporation of India (SECI), NTPC Limited, NHPC Limited, SJVN Limited, Railway Energy Management Company Limited (REMCL), and various distribution companies, for long-term supply of renewable energy under tariff-based competitive bidding guidelines.
Purvah had built a robust development pipeline, with approximately 8.4 GW of connectivity across the CTU and STU networks. These projects are strategically located in key renewable energy-rich states including Rajasthan, Madhya Pradesh, Uttar Pradesh, Gujarat, Andhra Pradesh, and Karnataka. Projects with a cumulative capacity of 2400 MW were under implementation at the end of 2025-26. In a significant development since the close of financial year, projects comprising of 296 MW out of these have been commissioned as on the date of this report.
Thermal
Chandrapur, Maharashtra: This is a 2x300 MW thermal power project implemented by Dhariwal Infrastructure Limited (DIL), a 100% subsidiary of CESC Limited. For power evacuation, the units are connected to the Maharashtra state grid as well as the central grid. This provides the flexibility to sell power to customers from within and outside the state. DIL has Fuel Supply Agreements (FSAs) with South Eastern Coalfields Limited, Western Coalfields Limited and Mahanadi Coalfields Limited.
DIL Unit-I supplies power through medium term contracts. In 2025-26, it entered medium term PPAs with Adani Electricity Mumbai Limited, Tata Power Company Limited and Noida Power Company Limited for supply of power aggregating to 225 MW. DIL has also secured a medium term PPA with Maharashtra Airport Development Company Ltd. (MADC) through RPG Power Trading Company Limited for supply of 10 MW from Unit I of DIL, with power supply starting from April 2026. For Unit-II, DIL has long-term Power Purchase Agreements (PPAs) for supply of 100 MW power to Tamil Nadu Power Distribution Corporation Limited (formerly known as Tamil Nadu Generation and Distribution Corporation Limited) and 171 MW power to the Noida Power Company Limited (NPCL). In 2025-26, the overall PLF for DIL was 82.9%. It ranked 8th in PLF ranking of independent power producers and 18th among all thermal power plants in India.
DIL is certified in respect of Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001), Occupational Health & Safety Management Systems (ISO 45001), Energy Management Systems (ISO 50001), Information Security Management Systems (ISO 27001) and Business Continuity Management System (ISO 22301)
DIL has excelled in meeting high environmental standards in its operations through continuous innovations and efforts. It has achieved 100% ash utilization and has an outstanding record on health and safety. Being a zero liquid discharge (ZLD) plant, various initiatives for utilization of waste water have been implemented, resulting in water consumption levels well below the national standards. It has also taken several measures to protect and enhance biodiversity. During the year, DIL installed a 22 kWp solar system to reduce its carbon footprints and promote sustainability.
DIL has a published Biodiversity Policy and is also a member of the India Business and Biodiversity Initiatives (IBBI). The development of biodiversity park by DIL represents a significant step towards enhancing environmental conservation efforts in the region. This park is designed to serve as a crucial habitat for various plant and animal species, promoting ecological balance and sustainability. A Ficarium forest was also developed during the year with 110 selected saplings, representing 22 distinct species known for their ecological benefits and aesthetic value.
During the year, it received several awards that underscore its performance and initiatives in the areas of environment and sustainability: (i) CII 26th National Award for Excellence in Energy Management 2025 under efficiency improvement, (ii) ASSOCHAM National Water Awards 2025 for the Water Management within the Plant, (iii) Sustainable Performance Award 2025 in the category of Best Environmental Excellence - IPP Coal (250-500 MW), organized by the Council of Enviro Excellence on June-2025, (iv) Private Sector Excellence Digital Initiative Plant of the Year by CEE 3rd National Power - Gen Leadership Award 2025 under DIGITAL INITIATIVE, and (v) Most Useful Presentation by CII 26th National Award for Excellence in Energy Management 2025 under efficiency improvement.
Asansol, West Bengal: This is a 40 MW atmospheric fluidised bed combustion (AFBC) power plant using washery rejects and inferior grade coal (IGC) from the adjacent captive coal mine in Sarisatolli. The unit has been operational since July 2009. The power plant is owned by Crescent Power Limited, a CESC subsidiary, which operates in the merchant power market. In 2025-26, the plant generated 321 million units (MU) of power with a PLF of 91.7%.
Renewable Energy
Ramanathapuram, Tamil Nadu: Commissioned in January 2016, this solar power project has been undertaken through Crescent Power Limited, a subsidiary of CESC. It has a capacity of 18 MW DC and the power generated in the project is being sold to the Tamil Nadu Power Distribution Corporation Limited (formerly known as Tamil Nadu Generation and Distribution Corporation Limited) under a long term energy purchase agreement. During 2025-26, it generated 27 MU of electricity.
New RE Projects (Rajasthan, Madhya Pradesh, Karnataka and Andhra Pradesh)
Purvah, a subsidiary of CESC, is currently implementing six renewable energy projects with a cumulative capacity of 2400 MW through its subsidiaries. These projects were awarded to the company under competitive bidding frameworks:(i) 300 MW Solar project at Bhadla, Rajasthan awarded by CESC, (296 MW commissioned till date)(ii) 450 MW Hybrid project comprising a 150 MW Solar at Bikaner, Rajasthan and a 300 MW Wind at Ananthapuram, Andhra Pradesh awarded by Noida Power Company Limited (NPCL), (iii) 300 MW Solar with 180 MW / 901 MWh BESS at Nagaur and 250 MW Wind at Bellary, Karnataka awarded by Railway Energy Management Company Limited (REMCL) for supply of round-the-clock (RTC) power to Indian Railways, (iv) 400 MW Solar with 150 MW / 600 MWh BESS at Bikaner, Rajasthan, awarded by Solar Energy Corporation of India (SECI), (v) 250 MW Wind at Bijapur, Karnataka, awarded by SECI, and (vi) 450 MW Hybrid project comprising a 150 MW Solar at Bikaner and a 300 MW Wind, located at Ananthapuram, Andhra Pradesh awarded by CESC.
Purvah won the Sustainable Energy Visionary Company award for excellence in Power & Energy, at the National Awards of Excellence, Mumbai. It was also recognised as the Fastest Growing Utility-Scale Project Developer of the Year at National Solar Awards 2025 at Suryacon Delhi by EQ — acknowledging its rapid growth and commitment to renewable energy, particularly in the field of large-scale solar power projects.
DISTRIBUTION VENTURES
CESC has been active in the private distribution outside Kolkata since 1993 through the Noida Power Company Limited (NPCL), its subsidiary that distributes power in Greater Noida, Uttar Pradesh. CESC also operates three distribution franchisees (DF) in Rajasthan and one in Maharashtra. Kota and Bharatpur became operational in 2016-17, Bikaner became operational in 2017-18 and Malegaon commenced operations in 2019-20. The latest addition to the Companys portfolio in this space is the distribution license for Chandigarh, which became effective in 2024-25.
The six operational distribution ventures of CESC (other than Kolkata operations), collectively service around 11.4 lakh consumers (10.9 lakh in 2024-25) and accounted for electricity sales amounting to 8,983 million units (MU) in 2025-26, up by 26% from 7,119 MU in 2024-25. A large part of the increase in sales is due to the addition of Chandigarh operations to the Companys portfolio, which contributed to the Companys performance for the full financial year in 2025-26, compared to about 2 months in the previous year as operations were taken over with effect from 1 February, 2025.
Greater Noida, Uttar Pradesh: Noida Power Company Limited (NPCL), a subsidiary company of CESC, started its operations in 1993-94 after it was granted distribution licence by the Government of Uttar Pradesh. The license area covers 335 square kilometres comprising a mix of industrial establishments as well as 118 fully electrified villages. Currently, around 7% of its 2,14,759 customers comprise business establishments.
NPCL completed 32 years of its operation in 2025-26. In this period, it has implemented state-of-the-art technology and processes to deliver safe and reliable electricity along with highly customer-centric services, setting industry benchmarks in the process. It has a fully integrated GIS and a 100% SCADA compliant network.
In 2025-26, NPCLs peak load grew at 9% to 848 MW, compared to 775 MW in 2024-25. Sales grew at 8% from 3,598 Mus in 2024-25 to 3,888 MU during the year. As
a mature and efficient distribution utility, NPCL achieved significant reduction in distribution losses from 7.48% in 2024-25 to 6.95% in 2025-26. Following prudent practices and proactive engagement with its customers, NPCL was able to maintain collections at more than 99% in 2025-26. The Companys digital collection ratio increased to 95%, compared to 93% in the previous year.
NPCL achieved the highest A+ rating for the fifth consecutive year in the 14th Annual Integrated Rating & Ranking of Power Distribution Utilities under the framework of Ministry of Power, Government of India.
Apart from this, NPCL received several prestigious awards and recognitions in 2025-26 including six international awards from QCFI and GEEF Global. Some of the key ones are Greentech CSR India Award for excellence in Skill Development, IPPAI - Best performing distribution utility and best utility in consumer awareness and smart metering solutions, CSR Leadership award at 11th CSR Summit, Mahatma Award for CSR Excellence, Jury champion award in the MUDA category by CII, Platinum award under "Excellence in Quality" in FAME 2025.
Chandigarh: Chandigarh Power Distribution Limited (CPDL), a subsidiary of CESC, commenced operations on 1 February 2025 as electricity distribution licensee in the Union Territory of Chandigarh. The licensed area of around 114 square kilometres caters to approximately 2.4 lakh consumers, with an annual energy sales volume of around 1,746 MU in 2025-26.
Within its first year of operations, CPDL has undertaken several strategic and operational initiatives to enhance service delivery and efficiency. These include digital transformation efforts such as deploying an end-to-end in-house SAP system, transitioning to monthly billing enabling significant reduction in meter-to-cash cycle, and implementing demand forecasting to optimize power procurement. Consumer service initiatives included integrating real-time digital payment solutions, introducing and efficient call centre and faster processing of new connections. The company has also strengthened its distribution infrastructure through capacity augmentation, including the addition of new power transformers and distribution transformers, along with the establishment of a 24x7 command centre for real-time network monitoring.
As a result of these efforts, the Company has reported better control on AT&C losses, higher ARR-ACS as well as enhanced billing and collection efficiency-leading upto better margins. This improvement in operational and financial performance is also reflected in the company securing its first credit ratings of IND AA- (Stable) / IND A1+ by India Ratings during the year.
Kota, Rajasthan: Kota Electricity Distribution Limited (KEDL), a wholly owned subsidiary of CESC, took over operations in Kota on September 1, 2016, after signing of Distribution Franchisee Agreement with the Jaipur Vidyut Vitran Nigam Limited (JVVNL).
In 2025-26, KEDL added 10,955 new customers. Despite offtake from a large HT customer remaining low, the total sales volume remained stable at 1241 Mus in 2025-26, compared to 1290 MU in the previous year. Distribution losses came down from 14.28% in 2024-25 to 12.38% in 2025-26, whereas the overall collection efficiency for nongovernment customers stood at over 100% during the year.
Bharatpur, Rajasthan: Bharatpur Electricity Services Limited (BESL), a wholly owned subsidiary of CESC, took over the operations in Bharatpur on December 1, 2016, after the signing of Distribution Franchisee Agreement with JVVNL.
BESL added 2,720 consumers during the year and its electricity sales volume grew marginally from 314 MU in 2024-25 to 322 MU in 2025-26. Distribution losses came down from 9.74% in 2024-25 to 9.24% in 2025-26, whereas the overall collection efficiency for non-government customers stood around 100% during the year.
Bikaner, Rajasthan: Bikaner Electricity Supply Limited (BKESL), a wholly owned subsidiary of CESC, took over the operations in Bikaner in May 2017 after the signing of Distribution Franchisee Agreement with Jodhpur Vidyut Vitran Nigam Limited (JdVVNL).
In 2025-26, BKESL added 6,734 new consumers. Even with significant addition in solar connected consumers with a 30.2 MW solar load in 2025-26, the Company registered a marginal increase in sales volume from 860 MU in 202425 to 864 MU in 2025-26. Distribution losses came down from 11.96% in 2024-25 to 10.88% in 2025-26, whereas the overall collection efficiency for non-government customers was above 100% during the year.
Box 4: Driving Efficiencies in Distribution — Key Initiatives in Rajasthan DFs
CESC has taken several initiatives across its DFs in Rajasthan — Kota, Bharatpur, and Bikaner — to drive operational excellence across its three identified strategic focus areas.
• Increasing Customer Satisfaction: Centralized new connection centre made operational across all three DFs; dedicated customer care centre launched in Bikaner for all customer service needs at the heart of Bikaner city; implementation of NIQ report-based improvement plan to boost customer satisfaction underway across DFs.
• Deploying Technology: Electronic meter reading through Mobile App; implementing centralized Meter Data Management (MDM) system for data collection; expanding choice of payment channels for consumers; standardizing quality, deposit management, and safety workflows though system modules; end-to-end governance for IT developments and change requests; Mobile App to capture and submit vigilance reports directly from the field.
• Driving Operational Efficiencies: HT metering audit and periodic testing to prevent pilferage; HT loss monitoring at feeder level to identify and isolate commercial losses in the network; DTR load balancing and feeder bifurcations across network for technical loss reduction. Also initiated process for implementation of Integrated Management System and NABL accreditation.
In recognition of its efforts, CESC was recognized for excellence in power distribution operations across all three DFs at the Zee Rajasthan and Bharat 24 Excellence Award in 2025-26. It was also honoured with the "Sustainable Innovation of the Year" award for its BESL operations at the ET Rajasthan Business Awards, following last years recognition for "Best Green Innovation - Distribution" across all three DFs. This reflects the organizations continued commitment to sustainable growth and operational excellence.
Malegaon, Maharashtra: Malegaon Power Supply Limited (MPSL), a wholly owned subsidiary of CESC, took over the operations in Malegaon on 1 March 2020 after signing a Distribution Franchisee Agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL). The distribution area covers the Malegaon Corporation Area spread across 57.6 square kilometres with around 1.36 lakh Consumers. Approximately 75% of the demand comes from the power loom sector.
The Company added 7,731 new connections and replaced 9,980 meters during the year. MPSL registered sales of 922 MU in 2025-26, compared to 836 MU in the previous year. It also stepped-up vigilance activities, while at the same time making significant efforts to improve collection efficiency. This has resulted in considerable improvement in performance.
HUMAN RESOURCES (HR)
CESC is focused on leveraging best-in-class HR practices to create an environment that ensures growth, development and well-being of its employees. Accordingly, all HR strategies are formulated with employees at the core, supporting them in contributing to organisational growth. Processes are in place to receive employee feedback and align the organisation with changing business needs.
During the year, focus was on reviewing and aligning HR policies — including Talent Acquisition, Reward & Recognition, Promotion and Leave — across all Group companies operating in the power sector. An important initiative during the year was launch of Power Pride portal for employee engagement. In line with move towards greater adoption of digital platforms as well as making them people friendly, the portal features tools for communication, internal social networking, appreciation, polls, quizzes, and hobby clubs.
CESC seeks to attract top talent through a balanced approach of engaging with premier engineering and management institutes, as well as hiring experienced professionals. Its recruitment processes are aimed at enhancing objectivity and transparency, incorporating structured assessments and pre-placement presentations. CESC also focuses on developing women leaders in various roles. Six women executives were recognised with the Most Admired Women Award by Advantage Club in 2025 and in 2026.
Learning and Development (L&D) continues to be a key pillar of CESCs HR strategy, supported by a robust framework for delivering structured training and learning interventions. These initiatives are designed to equip employees with the competencies required to meet evolving business and technological demands. During the year, CESC launched AI Academy, a flagship development initiative designed to make the entire organization AI Ready. 500 employees from across businesses and functions participated in the programme. During 2025-26, CESC conducted 617 training programmes — comprising both in-person classroom sessions and online learning modules — resulting in 7,770 man-days of training.
Last year, CESC had launched Power 100, a flagship leadership development initiative designed to build a strong pipeline of leaders within the organisation. Phase II of the project is currently underway, with a focus on advancing leadership readiness and preparing talent for strategic roles. To promote knowledge sharing and recognise contribution of in-house subject matter experts, it operates an Internal Faculty Reward & Recognition Programme which is in line with its vision to establish itself as an Employer of Choice. Another programme called Power Talk provides a platform to learn from industry and domain experts.
Box 5: Asia Institute of Power Management (AIPM)
Asia Institute of Power Management (AIPM), the ISO 9001 certified L&D arm of CESC, is engaged in capacity building of power sector professional since 2010. Over the years, AIPM has conducted taiior-made programmes supported by the rich expertise and experience of practicing professionals from CESC.
Its signature programmes include Modern Distribution Practices, Demand Side Management, Arresting Failure of Distribution Transformer, Power Distribution Through Underground and Overhead Cables, Power Sector Regulations, Electrical Safety in Power Distribution Sector, Business Economics of Electricity Sector, Smart Grid: From Concept to Reality & E-Vehicle, Application of IT in Power Distribution Business, Environment Management & Renewable Energy and many more. Since its inception, AIPM has trained 16,500 power professionals covering 47,000 training man-days.
During 2025-26, AIPM upskiiied engineers and executives of power utilities like Damodar Vaiiey Corporation, West Bengal Power Development Corporation, West Bengal State Electricity Distribution Company Limited, collaborated with Green Energy Transition Research Institute (GETRI), Vadodara, nodai training agency of Gujarat DISCOMs, as well as international client like Bhutan Power Corporation. During the year, AIPM launched an online training portal for imparting training to professionals as well as students and conducted 6 L&D sessions on the portal.
CESC places strong focus on wellbeing and engagement of its workforce. The Company has effective, employee-friendly HR policies and processes that keep employee engagement high and enhance welfare. It also operates several reward and recognition programmes, including periodic public recognition forums in addition to on-the-spot acknowledgement. The Company also engages family members of the employees through various flagship initiatives like Ankur Samman and sports events. Communication meetings are also regularly organised by the leadership team to encourage a culture of listening by addressing employee queries and generating free flow of ideas.
As on March 31, 2026, CESC had 5,289 employees on its payroll. Unions representing the employees continued to play a positive role in partnering with management to drive excellence in operations. The memorandum of settlement (MOS) for non-covenanted employees for the period 1 Apr 2024 to 31 Mar 2030 was signed between the Management and the Union during the year. CESC enjoyed industrial harmony in its operations during the year with no major incidents of service interruption due to industrial relations issues.
Business Excellence and Quality (BEQ)
A strong quality culture continues to be an integral part of CESC. The enduring ethos of customer centricity and operational excellence, coupled with a firm commitment to quality management discipline, has positioned CESC among the most efficient power utilities in the country.
During the year, focused efforts were made towards further strengthening a culture of continuous improvement through deeper integration of digital interventions and wider deployment of quality practices such as Kaizen and Workplace Organization under the 5S framework. For the first time since the inception, the number of Kaizens crossed the 1,000 figure mark.
Significant progress was also achieved in institutionalising structured problem-solving methodologies, with increased adoption of data-centric approaches in driving improvement projects. Initiatives across different functions were facilitated through workshops, leveraging analytical insights for precise problem identification, root cause validation, and implementation of sustainable solutions. This has enabled more informed decision-making, enhanced process reliability, and delivery of outcomes aligned with stakeholder expectations.
CESC continued to excel at prestigious quality forums, including gold medal at the 38th CCQC 2025 conducted by QCFI Kolkata. These recognitions reafirm the strength of our quality systems and strong employee engagement in continuous improvement.
Overall, the year marked a continued strengthening of Business Excellence practices, with greater standardization, enhanced governance, and deeper employee involvement, driving measurable improvements in operational performance and service delivery.
INFORMATION TECHNOLOGY IT
CESC continues to invest in strengthening its IT infrastructure and application ecosystem to enhance service delivery, support innovation and address the evolving requirements of its customers. A resilient and scalable digital foundation remains a key enabler of the Companys ability to deliver best-in-class services, build a competitive edge and deliver on its strategic and performance objectives.
The Companys IT infrastructure includes CESCNET, a captive optical fibre-based data network that connects service establishments across the licensed area, along with the Data Centre hosting enterprise applications and systems. During the year under review, focus continued to be on developing competencies in the areas of Artificial Intelligence, Machine Learning and Generative AI.
Several projects were launched during the year to address business needs (See Box 6). These efforts reflect the Companys ongoing approach to leveraging technology to enhance efficiency, decision making and customer experience.
Box 6: Key Data Analytics and Artificial Intelligence Initiatives
• AI driven automation model for Call Management System used to attend to unmanned substations, supporting timely response.
• AI driven intelligent screening of meter inspection advice to prioritise genuine cases for site inspection, thereby optimising field visit costs.
• Robotic Process Automation for handling walk in consumer complaints, streamlining complaint processing and reduction in customer wait times
• Centralised AWS Data Lake implementation for Project Drishti, delivering integrated analytics for generation assets while establishing the blueprint for CESCs enterprise information architecture.
Cyber security solutions and risk mitigation continued to remain a key focus area during the year under review. Regular Vulnerability Assessment and Penetration Testing exercises were conducted for critical IT assets, enabling timely identification of security gaps and implementation of appropriate remedial measures to strengthen the overall security posture. To enhance real time threat detection and response capabilities, business-critical application servers are protected with the help of leading- edge Managed Detection and Response (MDR) software and services. In addition, modern DevSecOps tools have been implemented to embed security controls across the application development lifecycle, supporting proactive identification and mitigation of vulnerabilities in business applications.
Other notable initiatives include implementation of Privileged Access Management tool for all critical software applications, migration of ISO 27001 to the latest 2022 standard as well as creating Cyber Crisis Management Plan (CCMP) guidelines for both Generation and Distribution businesses.
Environment Social Governance (ESG)
CESC Limited remains committed to balancing reliable energy supply with responsible and sustainable operations. Sustainability is embedded in its business strategy, guiding efforts to reduce environmental impact, enhance operational resilience and uphold strong governance. During FY 2025-26, the Company has achieved reduction in Scope 1 GHG emissions and recorded an increase in renewable energy consumption through initiatives including rooftop solar, micro-hydel projects, battery energy storage systems etc. Energy efficiency measures and digital technologies further improved operational performance and resource utilisation.
The Company also strengthened water conservation, waste recycling and management, including achieving 100% utilisation of ash generated from thermal operations. Biodiversity initiatives, improved workplace safety, expansion of electric mobility infrastructure and continued CSR programmes in education, healthcare, skill development and livelihood generation reinforced its commitment to inclusive growth. Backed by strong governance and stakeholder engagement, CESC remains focused on advancing ESG integration and creating long-term sustainable value for all stakeholders. Some of the key initiatives in the areas of environment and sustainability have been discussed in this Report, a more structured and in-depth presentation of the Companys ESG journey in 2025-26 can be found in the CSR Report, Business Responsibility and Sustainability Report, Report on Corporate Governance and Additional Shareholder Information, which form a part of this Annual Report.
Further, the Companys ESG Report for 2024-25, which contains disclosures on non-financial parameters for CESC as well as its key operating subsidiaries in adherence to the GRI Standards, is available on its website. The preparation of its 2025-26 edition is currently in progress.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
CESC remains deeply committed to enhancing the quality of life across the communities it serves by empowering individuals and enabling sustainable, long-term impact. Through strategic and focused interventions, the Company continues to create meaningful value across key areas including education, healthcare, environmental sustainability, and livelihood generation.
During the year, CESCs CSR initiatives received several awards and recognitions. The Company was Winner in the Environmental Sustainability category at the 8th
ICC Social Impact Awards 2026 for its Aparajita Project Sustainable Nutrition Education and Health (SNEH) Project garnered multiple accolades, including ‘Winner at the Indian Social Impact Summit and Awards 2025, the 19th EXCEED CSR Award 2025 (Health & Well-being), the Rotary India National CSR Award (Eastern Region) in Healthcare, and the 11th Greentech CSR India Award 2025 under Promotion of Healthcare.
A detailed overview of the Companys CSR initiatives and performance during the year is available in the Report on Corporate Social Responsibility Activities (Annexure D) and the Business Responsibility and Sustainability Report (Annexure E), both forming part of this Annual Report. Some of the key CSR projects undertaken in 2025-26 are presented below:
Education
CESCs education initiatives focus on strengthening foundational learning and early childhood development. Prarambh Project supports the holistic development of children aged 3-6 years across 16 centres, benefiting 446 children, while advancing access to quality Early Childhood Care and Education. Mashaal Project enhances foundational literacy and numeracy in government schools through structured interventions and teacher capacity building, reaching 2,820 students across 10 government schools. Complementing these efforts, the School Build Programme continues to upgrade critical infrastructure in government and municipal schools, creating safer and more conducive learning environments.
Environment
CESCs environmental initiatives promote sustainability while fostering community participation and livelihoods. Kiran Project drives decentralised waste management through vermicomposting, benefiting 1,857 individuals across 338 households while generating local livelihood opportunities. Aparajita Project implemented in North Dum Dum Municipality, addresses floral waste management through an innovative circular model, transforming waste into eco-friendly products while empowering women-led self-help groups. During 202526, the project processed over 32,000 kilograms of floral waste into value-added outputs. Sankalp Project further strengthens environmental awareness among 7,858 students and 250 teachers across 57 schools, cultivating responsible environmental behaviour. Additionally, CESCs collaboration with Kolkata Municipal Corporation for the maintenance of green verges contributes to urban beautification and ecological enhancement.
Health
Sustainable Nutrition Education and Health (SNEH)
Project continues to deliver integrated community-based healthcare across Tiljala, Pujali, and Kamarhati, impacting
over 20,000 beneficiaries within a population base of 80,000. With a strong emphasis on the first 1,000 days of life, the initiative promotes maternal and child health through nutrition, education, and primary healthcare services, fostering community ownership and long-term behavioural change.
Skill Development and Livelihood Generation
CESCs livelihood initiatives empower women and youth through market-relevant skills and employment opportunities. Apni Kutir Project has equipped 352 women annually with vocational and entrepreneurial skills, enabling sustainable income generation. Under Eklavya - CESC Skill Academy Project, 2,072 youth were trained across 14 centres, with 1,495 successfully placed during 2025-26, reinforcing the Companys commitment to employability and economic inclusion.
Inclusive Development
Himmat Project advances inclusive development by supporting 165 children and 46 youths with disabilities through special education, therapy, livelihood and family engagement. The initiative also strengthens family capacities and promotes collective empowerment through self-help groups (SHGs), facilitating greater social inclusion and improved quality of life.
FINANCIAL RESULTS
Table 4 summarises the financial performance of CESC Limited both as a standalone and a consolidated entity.
Table 4: Abridged Financial Performance of CESC (Standalone and Consolidated)
| (Rs. in crore) | ||||
Standalone |
Consolidated |
|||
| 2025-26 | 2024-25 | 2025-26 | 2024-25 | |
Revenue from Operations |
9,732 | 9,584 | 18,570 | 17,001 |
Other Income |
207 | 181 | 357 | 374 |
Total Income |
9,939 | 9,765 | 18,927 | 17,375 |
Operating Costs |
5,521 | 6,044 | 11,460 | 11,011 |
Employee Benefit Expenses |
1,049 | 946 | 1,478 | 1,221 |
Other Expenses |
1,231 | 1,288 | 2,185 | 2,080 |
Depreciation |
678 | 694 | 1,228 | 1,205 |
Finance Costs |
870 | 866 | 1,360 | 1,324 |
Total Expenses |
9,349 | 9,838 | 17,711 | 16,841 |
Regulatory Income/ (Expense) |
535 | 1,135 | 903 | 1,249 |
Profit Before Taxes (PBT) |
1,125 | 1,062 | 2,119 | 1,783 |
Tax Expense |
273 | 262 | 501 | 354 |
Profit After Taxes (PAT) |
852 | 800 | 1,618 | 1,429 |
Basic & Diluted EPS (?) |
6.43 | 6.03 | 11.63 | 10.33 |
Standalone Performance
Total income (including other income) of CESC grew by 1.8% from Rs 9,765 crore in 2024-25 to Rs 9,939 crore in 2025-26. Operating costs and other expenses decreased in 2025-26. In contrast, employee benefit expenses reflected an increase, compared to the previous year. Total expenses decreased by 5% from Rs.9, 838 crores in 2024-25 to Rs.9,349 crore in 2025-26.
Profit before taxes (PBT), after incorporating regulatory income, increased by 5.9% from Rs.1,062 crore in 202425 to Rs.1,125 crore in 2025-26. Profit after taxes (PAT) also improved from Rs.800 crore in 2024-25 to Rs.852 crore in 2025-26. Earnings per share (EPS) for the year was Rs.6.43, compared to Rs.6.03 in 2024-25.
Key Financial ratios of CESC as a standalone entity are as follows: Inventory Turnover Ratio reflects a significant change i.e., a change of more than 25% as defined under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) between 2024-25 and 2025-26. None of the other key financial ratios e.g. Debtors Turnover Ratio, Interest Coverage Ratio, Current Ratio, Debt Equity Ratio, Operating Profit Margin and Net Profit Margin for the Financial Year 2025-26 reflected a change of 25% or more as compared to the immediately previous Financial Year 2024-25. Return on Net Worth on Standalone basis for the Financial Years 2025-26 and 202425 stood at 8.7% and 8.1%, respectively.
Consolidated Performance
Total income (including other income) of CESC as a consolidated entity grew by 8.9% from Rs.17,375 crore in 2024-25 to Rs.18,927 crore in 2025-26. Total expenses during the year increased by 5.2% from Rs.16,841 crore in 2024-25 to Rs.17,711 crore in 2025-26.
Profit before taxes (PBT), after incorporating regulatory income grew by 18.8% from Rs.1,783 crore in 2024-25 to Rs.2,119 crore in 2025-26. Profit after taxes (PAT) for the year stood at Rs.1,618 crore, compared to Rs.1,429 crore in 2024-25. Earnings per share (EPS) was Rs.11.63 in 2025-26, versus 10.33 in the previous year.
INTERNAL CONTROLS
The Companys internal control systems are commensurate with its size and the nature of its operations. It has well documented policies, procedures and authorisation guidelines to ensure that all assets are safeguarded against unauthorised use or losses, all transactions are properly authorised, recorded and reported, and all applicable laws and regulations are complied with.
The effectiveness of internal control mechanism is tested and verified by the Internal Audit Department, covering all divisions and key areas of operation, based on an annual audit plan giving due weightage to the various risk parameters associated with the business. Major audit observations and follow-up actions are regularly reviewed and monitored by the Audit Committee and placed before the Board of Directors. The Internal Audit Department also assesses the effectiveness of risk management and governance processes.
RISKS AND CONCERNS
CESCs Risk Management Committee operates on a comprehensive risk management framework that the Company has put in place over time. The Committee is headed by Mr. PK. Khaitan, a Non-executive Director and comprises other members of the Board and senior management team as mentioned in the attached Report on Corporate Governance.
At CESC, risks are systematically evaluated, categorised and suitable actions are taken to mitigate these. Divisions identify operational and tactical risks and suggest measures for mitigation and control. Departmental heads manage risks at the departmental level, whereas the top leadership team supervises and monitors the risk identification and mitigation activities of each division. CESC has identified the following key areas of risks and concerns.
Macroeconomic and Market Risks
Geopolitical risks have again taken centre stage with the war in the Middle East. The surge in energy prices can spiral out of control significantly impacting broader inflation, impacting confidence and investments. This poses significant downside risks for growth outlook for India, and indeed for large parts of the developing world. As far as the power sector is concerned, surplus power generation capacities expose the industry to risks associated with difficulties in executing PPAs and adverse price movements in the short-term power market. Availability of coal, coal prices, coal quality and linkages for new projects continue to be issues of concern.
The global shift to electricity as a favoured and cleaner source of energy is now decisive, improving long-term prospects for strong growth of the sector. The current global environment and rising price of oil is likely to intensify electrification of energy demand in the medium to long term. As far as CESC is concerned, its foray into renewable energy mitigates risks associated with longterm outlook for thermal power generation. In any case, most of its generation capacities have long-term power sale arrangements. Further, it is well placed to access state and national grids to sell surplus power and has been successful in adequate utilisation of its generation capacities. To mitigate input risks, CESC has adopted a strategy of ensuring long term coal linkages for its projects.
Operational Risks
As power plants age, their operating efficiencies reduce. Beyond a point in time, shutting down and replacement of these plants become imperative. Other operational risks pertain to natural and man-made disasters such as nor wester, cyclone, deluge, earthquake and fire that can affect the Companys ability to supply quality power to its customers. Integration of renewable energy into the grid as well as scheduling through implementation of open access power transactions, enhanced variability in management of grid stability and demand supply balances are other such operational risks.
The medium to long term risks associated with generation sites, availability and quality of power have been alleviated with the generation plant at Haldia. Its foray into renewable energy further mitigates risks associated with availability of power for distribution.
To mitigate disaster related risks, the Company has a comprehensive disaster management plan where various functions collaborate and interface with external stakeholders for a proactive disaster management response. The institutional disaster management framework is governed by a three layered structure: Apex Disaster Management Group, Central Disaster Management Group and Nodal Disaster Management Group with a defined responsibility matrix. SOPs are in place for all functions at pre, during and post phases of disasters.
To mitigate fire safety related risks, a dedicated department works on fire safety management at all establishments and capacity building to ensure readiness on fire emergencies. While Fire safety certificates from West Bengal Fire and Emergency Services (WBFES) are available for all major establishments, cutting-edge technologies have been adopted for remote health monitoring of fire safety systems. Regular trainings on fire safety as well as periodic mock drill on firefighting and evacuation during emergency are part of the annual training calendar.
Regulatory Risks
Power is a highly regulated sector. This exposes the Company to risks with respect to changes in policies and regulations. Besides, given the nature of the industry, there is a risk of more stringent policies and norms aimed at addressing environmental concerns. Efficient management and utilisation of fly ash; order to install Flue Gas Desulphurisation (FGD) system in existing thermal power plants; obligations on use of power from renewable sources and use of biomass as a part of fuel-mix are some instances of these policies and restrictions. This can make it more difficult to execute new projects as well as increase cost of operations.
CESC is conscious of these risks and is prepared to take measures to implement changes to ensure compliance with extant regulations in the sector. All generating stations of the Company have achieved 100% ash utilisation. For FGD implementation, subsidiary thermal plants like HEL and DIL, being in the "B" category, have already applied for exemption to the statutory bodies. Its foray into renewable energy effectively mitigates risks associated with current renewable power obligation for its distribution ventures as well as policies promoting or mandating use of renewable energy sources for electricity generation in the longer term.
OUTLOOK
In todays geopolitical environment, energy is at the core of economic and national security, driving policy decisions on sources and fuel mix like never before. Electricity has been at the heart of modern economies as a cleaner source, and to meet global climate goals. The current environment has given further push to this shift, pointing towards a strong and sustained growth outlook for the electricity sector. According to IEA projections, while global energy demand is expected to grow at a CAGR of 0.5% upto 2050, electricity generation is expected to grow at a CAGR of 2.4% — which is approximately five times the growth in overall energy demand.
Despite macroeconomic uncertainties, the outlook for the Indian economy remains positive — with the RBI projecting a 6.9% GDP growth in 2026-27. The outlook for the electricity sector is even more promising. Electricity demand has grown rapidly and is poised to stay strong as household incomes continue to rise. Momentum should also come from Governments policy actions — including the emphasis on manufacturing, electric vehicles, and universal electricity access. Growing consumer preference for electricity for household and mobility needs is now increasingly visible in India, especially in urban and metropolitan areas. According to IEA estimates, Indias electricity generation will grow at a CAGR of 4% — much higher than the world average of 2.4% — upto 2050.
This should augur well for CESC, which has expertise in both power generation and in operating distribution networks across the country.
Cautionary Statement
The financial statements appearing above are in conformity with accounting principles generally accepted in India. The statements in the report which may be considered forward looking statements within the meaning of applicable laws and regulations, have been based upon current expectations and projection about future events. The management cannot, however, guarantee that these forward looking statements will be realised or achieved.
For and on behalf of the Board of Directors |
|
Dr Sanjiv Goenka |
|
Place : Kolkata |
Chairman |
Date : May 6, 2026 |
DIN: 00074796 |
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