CESC Limited , a leading power utility company, has reported a robust financial performance for the second quarter of fiscal year 2025-26, with significant growth in both standalone and consolidated profits. The company's Board of Directors has also declared an interim dividend of Rs 6 per equity share.

Standalone Performance

CESC Limited's standalone net profit for Q2 FY2025-26 stood at Rs 242 crore, marking an 11% increase from Rs 218 crore in the corresponding quarter of the previous year. The company's revenue from operations for the quarter was Rs 2,676 crore.

Consolidated Results

On a consolidated basis, CESC Limited and its subsidiaries have shown even stronger growth:

• Net profit rose to Rs 445 crore, up 19.3% from Rs 373 crore in Q2 FY2024-25
• Revenue from operations increased to Rs 5,267 crore, compared to Rs 4,700 crore in the same quarter last year

Financial Highlights

Dividend Announcement

The Board of Directors has declared an interim dividend of Rs 6 per equity share for the financial year 2025-26. The record date for determining eligible shareholders has been set as October 27, 2025.

Operational Overview

CESC Limited operates primarily in electricity generation and distribution. The company, along with its 41 subsidiaries and one joint venture, has shown resilience and growth in a challenging market environment.

Regulatory Matters

The company's financial results incorporate adjustments based on relevant orders from the West Bengal Electricity Regulatory Commission (WBERC). These include the implementation of Fuel and Power Purchase Adjustment Surcharge (FPPAS) from June 2024. CESC has filed appeals against certain deviations in the Annual Performance Review (APR) order for 2019-20 and the Multi-Year Tariff (MYT) order for 2023-24 to 2025-26, expressing confidence in a favorable adjudication.

Future Outlook

While CESC Limited has demonstrated strong financial performance, the company remains cautious about regulatory developments and their potential impact on future earnings. The management continues to focus on operational efficiency and strategic growth initiatives across its various subsidiaries and joint ventures.

As CESC Limited navigates through regulatory challenges and market dynamics, its robust Q2 performance and shareholder-friendly dividend policy signal a positive trajectory for the company in the power sector.

CESC Limited , a leading power utility company, has taken a significant step in its debt fundraising efforts. The company's board has approved a private placement of secured redeemable non-convertible debentures (NCDs) worth ₹300 crore, signaling a strategic move to bolster its financial position.

Key Details of the NCD Issue

According to the latest disclosure by CESC, the company plans to issue 30,000 Redeemable, Senior, Secured, Unlisted, Rated Non-Convertible Debentures. Each debenture will have a face value of ₹1 lakh, to be issued at par for cash. The total aggregation of this private placement amounts to ₹300 crore.

Terms and Structure

The NCDs come with the following key features:

• Tenure: 3 years from the Deemed Date of Allotment (September 26, 2025, to September 26, 2028)
• Listing Status: Unlisted
• Coupon Rate: 3 Months T-Bill Rate + 2.30% per annum
• Coupon Payment Frequency: Quarterly
• Redemption: Full redemption on maturity, with provisions for early redemption through call/put options

Security and Charges

The NCDs will be secured by:

1. A first-ranking pari-passu charge via mortgage over the company's immovable fixed assets, both present and future.
2. A first-ranking pari-passu charge through hypothecation of the company's movable fixed assets, both present and future.
3. A first-ranking pari-passu charge by hypothecation over the company's current assets until the Mortgage Document is executed.

Flexibility and Options

The debentures include a Call/Put Option exercisable at the end of 12 months from the deemed date of allotment, at par value. This provides flexibility for both the issuer and the investors.

Impact and Implications

This move by CESC to raise funds through NCDs suggests a strategic approach to managing its capital structure. By opting for a private placement, the company can potentially secure funding at competitive rates while maintaining financial flexibility. The secured nature of the NCDs, backed by the company's assets, may also contribute to favorable terms for this debt instrument.

For investors, these NCDs represent an opportunity to invest in a debt instrument from an established player in the power sector, with the added security of asset-backed collateral.

Quarterly Interest Payment Schedule

The final payment on September 26, 2028, will include the full redemption amount of ₹300 crore along with the last interest payment.