CESC Limited has announced its audited financial results for the fourth quarter and fiscal year ended March 31, 2026. The Board of Directors, which met on May 06, 2026, approved the standalone and consolidated results, along with the continuation of a key director. The statutory auditors, S.R. Batliboi & Co. LLP, issued an audit report with an unmodified opinion on both the standalone and consolidated financial results.

Q4 Consolidated Performance

For the fourth quarter, CESC reported year-on-year growth in consolidated net profit and revenue. However, EBITDA declined and the EBITDA margin contracted, reflecting higher operating costs across energy purchase and employee benefit expenses at the consolidated level. The following table summarises the key Q4 metrics:

Full-Year Consolidated Financial Performance

For the fiscal year 2025-26, CESC reported a consolidated profit for the period of Rs 1618 crore, up from Rs 1429 crore in the previous year. Total consolidated income for the year rose to Rs 18927 crore from Rs 17375 crore. Revenue from operations on a consolidated basis stood at Rs 18570 crore compared to Rs 17001 crore in the previous year. The profit attributable to the owners of the equity was Rs 1542 crore, while non-controlling interest accounted for Rs 76 crore. The consolidated EPS for the year was Rs 11.63.

Full-Year Standalone Financial Performance

On a standalone basis, CESC reported a profit for the year of Rs 852 crore, up from Rs 800 crore in the previous year. Revenue from operations reached Rs 9732 crore, while total standalone income stood at Rs 9939 crore compared to Rs 9765 crore. The profit before tax was Rs 1125 crore for the year, against Rs 1062 crore previously. The Earnings Per Share (EPS) on a standalone basis was recorded at Rs 6.43, compared to Rs 6.03 in the previous year.

Key Financial Ratios

The following table presents select key financial ratios for the full year on both a standalone and consolidated basis:

Cash Flow Highlights

On a standalone basis, net cash flow from operating activities for FY26 stood at Rs 3426 crore, compared to Rs 1821 crore in the previous year. Cash and cash equivalents on a standalone basis closed at Rs 971 crore, up from Rs 430 crore at the start of the year. On a consolidated basis, net cash flow from operating activities was Rs 4057 crore versus Rs 2581 crore previously, with consolidated cash and cash equivalents closing at Rs 4208 crore compared to Rs 2181 crore at the opening of the year.

Regulatory and Operational Notes

Revenue from operations has been arrived at based on relevant orders of the West Bengal Electricity Regulatory Commission (WBERC) and the levy of Fuel and Power Purchase Adjustment Surcharge (FPPAS) from June 2024. Regulatory income (net) on a standalone basis was Rs 535 crore for the year, compared to Rs 1135 crore in the previous year. On a consolidated basis, regulatory income (net) was Rs 903 crore versus Rs 1249 crore previously. The company noted that the APR order for 2020-21 received during the current year deviated from past practices in certain matters, for which necessary appeals have been filed or are in process. The Government of India's consolidation of 29 labour legislations into four labour codes, made effective from November 21, 2025, had an assessed impact of Rs 5 crore on standalone employee benefit obligations and Rs 35 crore on consolidated employee benefit obligations, with consequential impact on regulatory income recognised during the year.

Board Decisions and Corporate Governance

In addition to the financial results, the Board approved the continuation of Mr. Paras Kumar Chowdhary (DIN: 00076807) as a Non-Executive/Independent Director. Mr. Chowdhary, aged 74 years, is a science graduate with more than 45 years of experience in strategies, finance, sales and marketing, and has held senior leadership positions including Managing Director of CEAT Limited and President & Whole-time Director of Apollo Tyres Limited. He will attain the age of 75 years on October 1, 2026, and his continuation is subject to the approval of members at the forthcoming Annual General Meeting. The Board meeting commenced at 3.30 p.m. and concluded at 4.45 p.m. on May 06, 2026.

CESC Limited has successfully executed power purchase agreements for wind-solar hybrid power projects with a combined capacity of 600 MW, marking a significant step in the company's renewable energy procurement strategy. The agreements were signed with four entities following a competitive bidding process conducted in accordance with Ministry of Power guidelines, with subsidiary Purvah Green Power Private Limited securing half the total capacity.

Power Purchase Agreement Details

The company has entered into long-term power procurement contracts with multiple entities for grid connected wind-solar hybrid power projects. These agreements represent CESC's commitment to expanding its renewable energy portfolio through strategic partnerships.

Contract Terms and Commercial Considerations

All four power purchase agreements will remain in force for a period of 25 years, providing long-term energy security for CESC Limited. The tariffs are competitively priced, ranging from ₹3.74 per kWh to ₹3.75 per kWh, reflecting the competitive bidding process outcomes.

The agreements cover the supply of wind-solar hybrid power on a long-term basis, with all entities being domestic companies. This aligns with the government's focus on promoting renewable energy through domestic partnerships and investments.

Regulatory Compliance and Related Party Transactions

The power purchase agreements were executed following the competitive bidding process as per the "Guidelines for tariff Based Competitive Bidding Process for procurement of Power from Grid Connected Wind Solar Hybrid Power Projects" dated August 21, 2023, issued by the Ministry of Power, Government of India.

Notably, Purvah Green Power Private Limited is a subsidiary of CESC Limited, making this a related party transaction. However, the company has confirmed that this 300 MW wind-solar hybrid power project was awarded through tariff-based competitive bidding and is conducted on an arm's length basis in the ordinary course of business.

Strategic Implications

These power purchase agreements represent CESC Limited's strategic move to diversify its energy portfolio with renewable sources. The 600 MW total capacity from wind-solar hybrid projects will contribute significantly to the company's clean energy objectives while ensuring competitive pricing through the bidding process.

The inclusion of both subsidiary and third-party entities in the agreements demonstrates a balanced approach to renewable energy procurement, combining internal capabilities with external partnerships to achieve optimal capacity and pricing outcomes.