India’s power discom utilities have achieved a positive profit after tax (PAT) of Rs 27.01 billion in 2024–25.
This represents a substantial increase compared to the loss of Rs 255.53 billion in 2023–24 and Rs 679.62 billion in 2013–14. According to the Ministry of Power, the turnaround reflects the impact of a series of structural reforms such as the revamped distribution sector scheme, smart metering, the introduction of additional prudential norms linking access to finance with performance benchmarks and amendments to electricity rules to ensure timely tariff revisions, transparent subsidy accounting and full cost recovery. Additionally, operational indicators have shown parallel improvement. Aggregate technical and commercial losses have declined from 22.62 per cent in 2013–14 to 15.04 per cent in 2024–25, while the average cost of supply–average revenue realised gap has narrowed sharply from Rs 0.78 per kWh to Rs 0.06 per kWh over the same period. Outstanding dues to generating companies have fallen by 96 per cent, from Rs 1.4 trillion in 2022 to Rs 49.27 billion by January 2026.