⚡ CESC Ltd Q2 FY26 — From Chowringhee Cables to Chandigarh Charge: ₹445 Cr Profit, ₹6 Dividend, and ₹8,700 Cr Green Shock Therapy
1. At a Glance
If Kolkata had a power superhero, it wouldn’t wear a cape — it would wear an RP-Sanjiv Goenka logo. CESC Ltd, the ₹22,589 crore power utility that keeps Kolkata’s fans spinning, dropped an electrifying Q2 FY26: Revenue ₹5,351 Cr, PAT ₹445 Cr, YoY profit surge 20%, interim dividend ₹6/share, and a renewable-capex thunderbolt of ₹8,700 Cr.
At ₹170/share, it trades at 15.6× P/E, offers a 3.5 % dividend yield, and runs a ROE 11.3 % — respectable, if not shocking. Debt sits at ₹18,800 Cr, but interest coverage is 2.4× — enough buffer before the lights flicker.
The company’s slogan might as well be:
“Kolkata ko bijli, Chandigarh ko charge, investors ko dividend.”
2. Introduction – How Kolkata Got Its Current
CESC isn’t just any power company — it’s the granddaddy of Indian electricity, wiring the City of Joy since before half the startups even discovered sockets. Formed in 1978, it became the RP-Sanjiv Goenka Group’s crown jewel, powering cities, dreams, and now ESG presentations.
While peers chase green narratives, CESC is actually building them — 3 GW+ renewables in the pipeline, Chandigarh license bagged, and a mobile app that’s slicker than most fintech apps.
Yet, for all its old-school power plant DNA, the company throws modern financial punchlines: stable profits, quarterly dividends, and zero pledges. In short, the old horse just downloaded its EV-charging update.
3. Business Model – WTF Do They Even Do?
CESC’s business is split between Generation, Distribution, and Renewable Expansion — essentially make, move, and monetize electricity.
Distribution: Kolkata, Howrah & Noida + four franchisees (Rajasthan, Maharashtra).
Renewables: Through subsidiary Purvah Green Power, target 10 GW by FY 29.
About 78 % of power generated is consumed within its own distribution network — a vertically integrated loop that keeps profit inside the family (unlike Indian weddings).
Serving 4.4 million customers across 1,340 sq km, CESC is literally what keeps Bengal awake during IPL night matches.
4. Financials Overview
Source table
Metric
Q2 FY26
YoY Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue (₹ Cr)
5,351
4,776
5,202
+12.1 %
+2.9 %
EBITDA (₹ Cr)
1,061
896
864
+18.4 %
+22.8 %
PAT (₹ Cr)
445
370
404
+20.3 %
+10.1 %
EPS (₹)
3.21
2.67
2.92
+20.2 %
+9.9 %
Commentary: Operating margin 20 %. Profit up 20 %. Dividend up 0 %. CFO smiling 100 %. The power grid’s steady; so are the cheques.
