CESC Q4 profit rises 17% to ₹439 crore, but margins shrink

CESC Ltd reported a 17.4% year-on-year rise in consolidated net profit for the March quarter, supported by steady revenue growth, even as margins came under pressure.

The company's net profit for the quarter stood at ₹439 crore, compared with ₹374 crore a year earlier. Revenue rose 5.6% to ₹4,096 crore from ₹3,877 crore in the corresponding period last year, according to the exchange filing.

However, operating performance weakened, with EBITDA declining 8.5% to ₹743 crore from ₹812 crore. As a result, operating margin contracted to 18.14% from 20.94% a year ago.

The company also highlighted the impact of India’s new labour law framework, following the implementation of four labour codes effective November 21, 2025. Based on its assessment, CESC recognised an impact of ₹35 crore on employee benefit obligations during FY26, with a corresponding effect on regulatory income.

The company said it continues to monitor the finalisation of rules by central and state governments and will take appropriate action as further clarity emerges.

Renewable power tie-ups

Earlier, CESC said it has entered into power purchase agreements (PPAs) to procure a total of 600 MW of electricity from grid-connected wind-solar hybrid projects.

The agreements have been signed with Vismaya Renewables India Project Pvt Ltd (100 MW), Hexa Climate Solutions Pvt Ltd (100 MW), Purvah Green Power Pvt Ltd (300 MW) and Sprng Energy Pvt Ltd (100 MW).

All four projects involve long-term supply, with each PPA valid for 25 years. The discovered tariffs range between ₹3.74 and ₹3.75 per kWh, depending on the project.

Shares of CESC Ltd ended lower on Wednesday, May 6, by 1.17% at ₹184.69 on the NSE.