India’s power firms turned profitable in 2024–25 after years of losses, thanks to government reforms.

India’s power distribution companies (discoms) reported a collective profit of ₹2,701 crore in fiscal year 2024–25, marking their first profitable year in years after sustained losses, including ₹25,553 crore in FY24 and ₹67,962 crore in FY14. The turnaround is attributed to government reforms like the Revamped Distribution Sector Scheme, smart metering, performance-linked financing, and updated electricity rules that improved cost recovery and transparency. Aggregate technical and commercial losses dropped to 15.04% from 22.62% in 2013–14, outstanding dues to generators fell 96% to ₹4,927 crore by January 2026, and payment cycles shortened from 178 to 113 days.