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Informist, Wednesday, Jul. 30, 2025

By Arundathi AR

MUMBAI – CESC Ltd. is expected to post a double-digit growth in both its top line and bottom line for the June quarter. While volumes are likely to be flat during the quarter due to the early onset of the monsoon, the net profit is expected to rise mainly due to a reduction in transmisson and distribution losses, according to brokerages tracking the company. The company's growth is also backed by a strong order book, they said. 

CESC is expected to post a net profit of INR 3.69 billion for the June quarter, according to the average of estimates from four brokerages. This would be up 92% on year and up 70% on quarter. The company is expected to report net sales of INR 46.79 billion for the June quarter, up 64% on year and up 118% on quarter, according to the estimates.

JM Financial Institutional Securities Pvt.Ltd. has the highest estimate of INR 4.66 billion for the company's net profit and Kotak Institutional Equities has the lowest estimate of INR 2.25 billion. Sharekhan Ltd. has the highest estimate of INR 58.2 billion for the company's net sales while the lowest estimate of INR 33.29 billion is again by Kotak Institutional.

"Power demand fell in Q1FY26 to 446 billion units (BU), by 1.3% y-o-y. The consumption was weak because of the early onset of the monsoon," Sharekhan said. "Demand is soft but should converge to the GDP growth rate in the medium to long term." The company is expected to post a flat unit sales at 3.5 billion units owing to modest power demand in the June quarter, according to Kotak. CESC's focus on reducing transmission and distribution losses will also boost the company's revenue growth for the reporting quarter, according to Nuvama Wealth Management.

"We expect a muted quarter in Q1FY26. In distribution, we expect Malegaon losses to continue though at a slower pace due to company's focus on reducing T&D losses while Rajasthan distribution is expected to continue performing better while generational business is expecting to be flat YoY," Nuvama said.

The company is expected to post a standalone EBITDA of INR 9.48 billion for the June quarter, up 45% on year but unchanged on quarter, according to the estimates by three brokerages.

JM Financial Institutional Securities Pvt. Ltd. has the highest estimate of INR 11.25 billion for the company's EBITDA and Kotak Institutional Equities has the lowest estimate of INR 6.58 billion. The company is expected to report an on-year increase in its EBITDA due to the decline in fuel cost by 21% on year, according to JM Financial.

At 1026 IST, shares of CESC Ltd. traded at INR 178.58 on the National Stock Exchange, up almost 1% ahead of the earnings. The company is scheduled to report its earnings for the June quarter later on Wednesday. The stock is up almost 11% since the company reported its March quarter earnings. Of the six brokerage reports on the stock available with Informist, five have a ‘buy' recommendation at an average target price of INR 208 while one has a ‘hold' recommendation.

Following are the Apr-Jun earnings estimates for CESC Ltd., in INR million, based on reports from four brokerage firms in descending order of net profit:

End

IST, or Indian Standard Time is five and a half hours ahead of GMT

Edited by Akul Nishant Akhoury

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