DISCOMs post ₹2,701 crore profit after earlier large losses
India's power distribution companies (DISCOMs) just pulled off a major comeback—posting a ₹2,701 crore profit for FY25 after earlier large losses (PFC reported accrued losses ranging from about ₹25,000 crore to ₹63,000 crore between 2014-15 and 2024-25).
This turnaround comes from tighter operations and smarter subsidy management.
What led to the turnaround?
DISCOMs cut technical and commercial losses to 15.04%—down from 22.62% in 2014-2015 (FY2014-15)—and nearly closed the gap between what they spend and what they earn per unit of power.
The government's reforms helped them hit key targets, making their finances much healthier.
Experts warn that this "profit" might not be all business
Outstanding dues to power generators dropped by 96%—from about ₹1.4 lakh crore in 2022 to ₹4,927 crore by January 2026—due to a combination of the Late Payment Surcharge/late-payment rules and debt restructuring/borrowing (including fresh 10-year loans from PFC and REC and earlier liquidity schemes).
Billing efficiency hit almost 88%, and states finally cleared most subsidy payments.
But some experts warn that a lot of this "profit" comes from accounting tweaks and clearing old subsidies—not just better business.
Cash flow issues still linger, so there's more work ahead if DISCOMs want these gains to last.