CESC Ltd. shares settled at ₹131.01 during the special Muhurat trading session on Sunday, clawing back 0.6% after shedding 22% across 2024. The retreat may be nearing its end. Institutional brokerage Elara Securities retained its 'Buy' rating on the power utility, setting a target price of ₹228—a potential 75% upside from current levels.
Low risk anchors the thesis. CESC generates predictable, regulated cash flows from its flagship distribution networks in Kolkata and Haldia, while its Rajasthan franchise continues to ramp up incremental volumes. The company's balance sheet remains stable enough to bankroll a multi-year decarbonization pivot.
Capital expenditure is shifting toward green generation. CESC is executing plans to build out 3 GW of utility-scale renewable energy assets alongside a 10,500-tonne annual green hydrogen manufacturing facility. That execution timetable triggered immediate forecast updates. Elara revised its earnings estimates upward by 3.7% for FY27, 2.4% for FY28, and 1.4% for FY29, citing structural valuation re-rating once the renewable capacity enters commercial operation.
Operating numbers for the second quarter reflected steady top-line growth tempered by higher wage and operational outlays. Net sales from operations climbed 6.5% year-on-year and 2.2% sequentially to ₹5,607 crore. Yet margins faced friction. Operating EBITDA slipped 2.1% year-on-year to ₹1,039 crore, though it rebounded 16.1% over the June quarter. EBITDA margins stood at 18.5%, down from 20.1% a year earlier.
Costs crept higher across the ledger. Total operational expenses advanced 8.6% year-on-year to ₹4,568 crore. Fuel outlays increased 2.6% to ₹1,008 crore, while employee benefit costs climbed 9.6% and other administrative overhead jumped 6.9%.
| Financial Metric | Q2 Value (₹ Cr) | YoY Change (%) | QoQ Change (%) |
|---|---|---|---|
| Net Sales from Operations | 5,607 | +6.5% | +2.2% |
| Operating EBITDA | 1,039 | -2.1% | +16.1% |
| Total Expenses | 4,568 | +8.6% | — |
| Fuel Costs | 1,008 |
Regulatory accounting absorbed the blow. Net regulatory income jumped 37.5% year-on-year to ₹99 crore, offsetting a 2% decline in core pre-tax earnings and lifting reported profit before tax by 3% to ₹586 crore. Reported net profit closed at ₹438 crore, down 2.2% from the year-ago quarter but up 4.5% on a sequential basis. Active trade resumes on Monday, November 9, with desks tracking institutional volume against the ₹131 threshold.
| +2.6% |
| — |
| Net Regulatory Income | 99 | +37.5% | — |
| Reported Net Profit | 438 | -2.2% | +4.5% |