CESC eyes double-digit profit growth by 2030, targets 10 GW renewables

CESC Limited announced its "Growth Vision 2030," targeting a doubling of consolidated PAT and a hybrid renewable energy capacity of 3.2 GW by FY29, expanding to 10 GW by FY32. The company also plans to establish a 3 GW solar cell and module manufacturing ecosystem by 2027. This growth will be supported by a planned distribution CAPEX of Rs 6,000 Cr over the next five years, and a Phase 1 CAPEX for renewables of over Rs 23,000 Cr.

The company's strategy includes leveraging distribution privatization opportunities, particularly in Uttar Pradesh, where it is well-placed to capture opportunities in Purvanchal Vidyut Vitaran Nigam Ltd and Dakshinanchal Vidyut Vitran Nigam Ltd. CESC's existing distribution licenses, like Kolkata and NPCL-Greater Noida, have demonstrated strong sales volume growth of 7% and 16% CAGR respectively, from FY21-25. The company's focus on cost optimization and regulatory income is expected to further boost cash profits.

Recent advancements include an 8.2% FPPAS hike in the Kolkata license area, reducing under-recoveries, and securing 1600 MW Renewable Projects by Purvah Green Power. The company also highlighted its acquisition of a 100% stake in Chandigarh Power Distribution Limited (CPDL) on February 1, 2025, with a planned investment of approximately Rs 1,000 Cr over the next five years for network improvement and operational reliability.