Shares of CESC slipped into the red on Thursday after margin compression across its core operations dragged second-quarter earnings lower, undermining top-line gains.
The flagship power utility reported a 1.2% dip in consolidated net profit to ₹423 crore for the quarter ended September 30, down from ₹428 crore in the corresponding quarter last year. Revenue from operations climbed 6.5% to ₹5,607 crore against ₹5,267 crore a year earlier. But top-line momentum failed to protect the bottom line. Operating performance softened as earnings before interest, taxes, depreciation, and amortisation (EBITDA) dropped 2.1% to ₹1,039 crore compared with ₹1,061 crore in the year-ago period. EBITDA margin narrowed by 150 basis points to 18.5% from 20%.
The operational squeeze overshadowed revenue additions across distribution and generation assets. The numbers tell the story:
| Metric | Q2 FY Current | Q2 FY Previous | YoY Change (%) |
|---|---|---|---|
| Net Profit (₹ Crore) | 423 | 428 | -1.2% |
| Revenue from Operations (₹ Crore) | 5,607 | 5,267 | +6.5% |
| EBITDA (₹ Crore) | 1,039 | 1,061 | -2.1% |
| EBITDA Margin (%) | 18.5% | 20.0% | -150 bps |
Market reaction was swift. Traders faded an early rally that had lifted the stock to an intraday high of ₹135.20. By midday, the counter shed those morning gains entirely, trading down 0.41% at ₹130.40. Volume remained focused on the selling side as institutional desks adjusted model portfolios to account for the margin trim.
CESC stock has now surrendered roughly 2% over the trailing month, deepening a prolonged sell-off that has wiped 21.6% off its equity value since January. The weakness comes even after the power producer disbursed an interim dividend of ₹6 per equity share during the September quarter, following a board approval on August 13.
Investors now turn to upcoming power dispatch volumes and fuel cost recoveries in the second half of the fiscal year to gauge whether operating margins can rebound from the current 18.5% floor.