CESC Limited has allotted 19,000 secured, unlisted, redeemable, and rated non-convertible debentures (NCDs) aggregating to ₹190 crore on a private placement basis.

The allotment was approved by the Committee of the Board of Directors at its meeting held on September 24, 2026. The securities were allotted to Kotak Mahindra Bank Limited, headquartered in Mumbai. This follows the initial intimation regarding the review of the proposal made on September 17, 2026, and the subsequent approval of the issuance on September 22, 2026.

Key Details

• Instrument: Secured, Unlisted, Redeemable, Rated Non-Convertible Debentures
• Issue Size: ₹190 crore (19,000 NCDs of face value ₹1 lakh each)
• Allottee: Kotak Mahindra Bank Limited
• Basis: Private Placement
• Date of Allotment: September 24, 2026
• Maturity Date: September 24, 2031
• Tenure: 5 years

Coupon and Security Structure

The NCDs offer a coupon rate linked to the One Month MIBOR OIS plus a spread of 2.20% per annum. Interest payments will be made monthly on the last day of each month, commencing from the deemed date of allotment.

The securities are backed by a first ranking pari passu charge by way of mortgage over the company's immovable fixed assets and hypothecation over movable fixed assets, both present and future. The security cover is maintained at 1.10 times throughout the tenure.

Redemption Schedule

The principal amount of ₹190 crore will be repaid in 16 equal installments of approximately ₹11.88 crore each, starting from December 31, 2027, and concluding on the final maturity date of September 24, 2031.

Call/Put Option

The debentures include a call and put option exercisable at the end of three years from the deemed date of allotment, at par value. In the event of a payment default, the company will pay an additional interest of 2% per annum over the applicable coupon rate.

CESC Limited reported a consolidated net profit of ₹1,618 crore for FY26, marking a 13% year-on-year increase. Revenue rose 9% to ₹18,927 crore, supported by improved operational efficiency across its integrated power chain and stable cash flows.

The Kolkata-based utility filed its investor presentation with the National Stock Exchange of India Limited on September 18, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The document outlines the company's financial performance and strategic roadmap under its Vision 2030 plan.

Financial Performance

CESC’s operating profit (EBITDA) grew 9% to ₹4,707 crore in FY26, aligning with revenue growth. The company generated operating cash flow of ₹40 billion in FY26, a 57% year-on-year increase, enabling self-funded growth initiatives.

Return on equity expanded to 12.6% in FY26 from 11.7% in FY25. The company targets doubling profits and expanding ROE by 400 basis points by 2030.

Distribution and Generation Efficiency

The distribution segment remains the cash-generating core, serving 4.9 million consumers across seven geographies. CESC Kolkata reduced transmission and distribution (T&D) losses to 6.11% in FY26 from 8.4% in FY21. Noida Power (NPCL) achieved 6.95% T&D losses, while Chandigarh Power (CPDL) recorded 8.3% losses after its acquisition in February 2025.

Thermal generation assets maintained high plant load factors (PLF). Haldia TPP operated at 95% PLF, and Budge Budge TPP at 82%. The company plans ₹6,000 crore in distribution investments to enhance regulated equity and capacity build-out.

Renewable Energy Expansion

CESC is accelerating its pivot toward renewable energy through Purvah Green, targeting 10 GW of medium-term capacity. The subsidiary signed a share purchase agreement to acquire 1,411 MWp of operational solar assets from ReNew Solar Power for an enterprise value of approximately ₹4,859 crore. The transaction is expected to complete before October 31, 2026.

This acquisition brings Purvah Green’s total contractual capacity to 4.8 GWp, including 1.8 GWp operational assets. The portfolio includes 3,514 MWp of solar, 1,335 MW of wind, and 2,230 MWh of battery energy storage systems (BESS). Committed capex for the contracted capacity exceeds ₹26,000 crore.

Manufacturing and Strategic Initiatives

The company is establishing a 3 GW integrated solar cell and module manufacturing facility in Greater Noida, Uttar Pradesh, with an investment of approximately ₹3,000 crore. The project aims for completion by 2027, leveraging captive offtake from Purvah Green’s pipeline and policy tailwinds from the Approved List of Models and Manufacturers (ALMM) regulations.

What the Numbers Show

The divergence between EBITDA growth (9%) and net profit growth (13%) suggests operational leverage or favorable non-operating items contributing to the bottom line. With T&D losses dropping significantly in key franchises like Kolkata and Noida, the distribution segment is converting efficiency gains into margin expansion, funding the capital-intensive renewable and manufacturing expansions without diluting shareholder equity.