CESC (CESC) investor relations material

Business overview and strategy

• Operates as a fully integrated utility with 4.9 million consumers across 7 geographies, focusing on distribution, generation, and renewables.

• Pursuing a medium-term vision of 10 GW renewable energy capacity, with 4.8 GWp contractual and 1.8 GWp operational capacity.

• Backward integration into solar cell and module manufacturing, targeting 3 GW capacity by 2027 with land secured in Uttar Pradesh.

• Strategic expansion through acquisition of 1,411 MWp solar assets, accelerating the renewable portfolio and recurring cash flows.

• Focused on digital transformation, with over 95% revenue collection and 88% payment channels now digital.

Financial performance and growth

• FY26 consolidated revenue reached Rs 18,927 Cr, up 9% YoY; EBITDA at Rs 4,707 Cr, and PAT at Rs 1,618 Cr, up 13% YoY.

• Distribution remains the cash-generating core, with high-yield license areas and annuity-like cash flows funding growth.

• Significant capex planned: ~Rs 35,000 Cr over five years, with strong cash flow growth and a 57% YoY increase in operating cash flow in FY26.

• Targeting PAT doubling and 400 bps ROE expansion by 2030, driven by distribution growth, renewables, and cost optimization.

• Consistent dividend payouts and strong operational performance across subsidiaries.

Operational excellence and efficiency

• Industry-leading T&D loss reduction: Kolkata at 6.11%, Noida at 6.95%, and Chandigarh at 8.3% in FY26.

• Generation assets maintain high PLFs, with Budge Budge TPP at 84% and Haldia TPP at 91% in FY26.

• Asset life enhancement, process standardization, and cross-functional efficiency programs implemented to boost reliability and performance.

• Digital-first customer engagement, with 99.7% of queries resolved within 5 minutes and over 1.1 lakh registered customers.

• Operational resilience supported by zero fatality and high-consequence injuries for three consecutive years.