Power Distribution Sector Turns Profitable After Years, DISCOMs Post ₹2,701 Cr PAT in FY25

New Delhi | January 18, 2026- India’s power distribution sector has recorded a major financial turnaround, with power distribution utilities posting a collective Profit After Tax (PAT) of ₹2,701 crore in FY 2024–25 after years of continuous losses. The achievement marks a significant milestone for DISCOMs and state power departments that had remained in deficit since the unbundling of State Electricity Boards.

Union Power Minister  Manohar Lal described the development as the beginning of a “new chapter” for the distribution sector, attributing the turnaround to sustained structural reforms and policy interventions undertaken over the past decade. He said the sector’s revival reflects the Prime Minister’s vision of positioning energy as a key driver of India’s economic growth and the journey towards Viksit Bharat.

The improvement comes on the back of multiple reform measures, including the Revamped Distribution Sector Scheme (RDSS), stricter prudential norms linked to performance, amendments to electricity rules ensuring timely tariff revisions, and enhanced transparency through uniform accounting standards for distribution utilities.

Key performance indicators have also shown steady progress. Aggregate Technical and Commercial (AT&C) losses have declined sharply over the years, while the gap between the average cost of supply and average revenue realised has narrowed significantly, indicating improved cost recovery. Payment discipline has strengthened as well, with outstanding dues to power generators witnessing a steep reduction and payment cycles shortening considerably.

The Ministry of Power has worked closely with states and Union Territories through regular reviews and regional energy conferences to push reforms on the ground. According to officials, this collaborative approach has played a crucial role in restoring financial stability to DISCOMs.

The government expects the positive momentum to continue, with further deliberations underway by a Group of Ministers focused on strengthening the long-term financial viability of power distribution utilities across the country.