CESC Ltd (CESC) AI Stock Analysis

• Market Cap: ₹196.91B
• Dividend Yield: 3.56%
• Average Volume (3M): 158.22K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.34
• Revenue Growth: 10.58%
• EPS Growth: 2.69%
• Country: IN
• Employees: 6,087
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 2.10
• Shares Outstanding: 1,325,570,400
• 10 Day Avg. Volume: 196,144
• 30 Day Avg. Volume: 158,224
• PEG Ratio: -25.64
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 28.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 12.17
• Revenue Forecast (FY): ₹193.52B

• Rating: 73 Outperform
• Price Target: ₹165.00 ▼(-4.87% Downside)
• Action: Upgraded Date: 10/30/25
• Date: Action: Upgraded 10/30/25

CESC Ltd's overall stock score is driven by strong financial performance and bullish technical indicators. The company's growth phase and stable financial health are significant strengths, while the fair valuation suggests moderate upside potential. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth & Margins

Sustained ~11% revenue growth with healthy gross (~35%) and net (~8%) margins indicates durable demand and pricing power in its licensed territories. Stable margins and top-line expansion support reinvestment in networks and generation, underpinning multi-quarter earnings resilience.

Operating Cash Generation

A ~1.9x operating cash-to-net-income conversion shows the business reliably converts accounting profits into cash. For a utility with predictable collections and regulated tariffs, strong cash generation supports capex, debt servicing, and working capital needs over the medium term.

Integrated Generation & Distribution

Control across generation and regulated distribution reduces procurement and supply mismatch risk and allows capture of generation-to-distribution spread. Regulated returns on distribution provide predictable revenue floors and support long-term cash visibility and investment planning.

Negative Factors

Moderate Leverage

A D/E around 1.5 and modest equity ratio imply material leverage for a utility. While manageable, this level increases interest cost sensitivity and reduces financial flexibility for large infrastructure projects or adverse shocks, potentially pressuring credit metrics and funding costs.

Negative Free Cash Flow Growth

Negative FCF growth driven by higher capex compresses cash reserves and may necessitate external financing if investments don't quickly translate to returns. Over months, sustained negative FCF can strain liquidity and elevate refinancing or incremental debt needs.

Operating Margin Variability

Variability in EBIT margins signals exposure to generation costs, network losses, or utilization swings. For a regulated utility, such operational volatility can erode predictable earnings and make forward margin planning harder, risking earnings sensitivity to fuel or procurement cost shocks.

CESC Ltd Business Overview & Revenue Model

Company Description

CESC Limited, an integrated electrical utility company, engages in the generation and distribution of electricity in India. It owns and operates three thermal power plants, including Budge Budge, Southern, and Titagarh generating stations generating 1125 megawatts (MW) of power; a thermal power project with a capacity of 600 MW in Haldia, West Bengal; two thermal power projects with a capacity of 600 MW in Chandrapur, Maharashtra and 40 MW atmospheric fluidized bed combustion power plant in Asansol, West Bengal; and transmission and distribution network of 23468 circuit kms, and distributes power in Uttar Pradesh with license area of 335 square kilometers. The company also owns and operates solar power project with a capacity of 18 MW data center in Ramanathapuram, Tamil Nadu. It serves approximately 3.5 million domestic, industrial, and commercial users in 567 square kilometers of Kolkata and Howrah. CESC Limited was founded in 1899 and is headquartered in Kolkata, India.

How the Company Makes Money

CESC primarily makes money by supplying electricity to customers in its licensed distribution areas and earning regulated returns for operating and maintaining the distribution network. Its key revenue streams typically include: (1) electricity sales to end consumers (residential, commercial, and industrial), where revenue is driven by units sold (kWh) and tariff rates set or approved by the relevant electricity regulatory framework; (2) distribution-related income associated with regulated charges for wheeling/distribution services and recovery of approved costs (such as network operations and maintenance) through tariff mechanisms; and (3) power generation revenue, which can come from selling electricity generated by its own plants either into its distribution supply portfolio or to other counterparties, depending on power procurement and dispatch arrangements. Profitability is influenced by the spread between approved/customer tariffs and the costs of power procurement/generation, network losses, collection efficiency, regulatory determinations (tariff orders, allowed returns, cost pass-throughs), and the operating performance and utilization of generation assets. Specific details on material partnerships or major contractual counterparties are null.

CESC Ltd Financial Statement Overview

Summary

CESC Ltd's financial statements reflect strong revenue growth and stable profitability with a healthy gross profit margin. The balance sheet shows moderate leverage with a debt-to-equity ratio of 1.5, and the cash flow statement indicates strong operational cash generation despite pressure from investment activities. Overall, the company is in a growth phase with sound financial health, though improvements in operational efficiency and debt management could enhance performance.

Income Statement

CESC Ltd has shown strong revenue growth with a TTM revenue increase of approximately 11% from the previous year. The company maintains a healthy gross profit margin of around 35% and a net profit margin of roughly 8%, which indicates efficient cost management. However, the EBIT margin has seen some variability, suggesting potential fluctuations in operating efficiency. Overall, the income statement reflects a positive growth trajectory with stable profitability, although operational improvements could enhance margins further.

Balance Sheet

The company's balance sheet shows a stable equity position with a debt-to-equity ratio of about 1.5, indicating moderate leverage. The return on equity (ROE) is approximately 11.4%, reflecting reasonable profitability relative to shareholder equity. An equity ratio of around 29% suggests a balanced capital structure, though there is room for improvement in reducing debt levels to enhance financial stability. Overall, the balance sheet indicates a stable financial position with manageable leverage.

Cash Flow

CESC Ltd demonstrates a consistent ability to generate operating cash flow, with a TTM operating cash flow to net income ratio of approximately 1.89, indicating strong cash conversion efficiency. The free cash flow growth rate has been negative, reflecting increased capital expenditures which may be directed towards growth initiatives. While the free cash flow to net income ratio is positive, ongoing investment activities have impacted cash reserves. Overall, the cash flow statement shows solid operational cash generation, albeit with some cash flow pressure due to investment activities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	179.07B	170.01B	152.93B	142.46B	125.44B	116.39B
Gross Profit	61.96B	59.90B	51.10B	45.52B	30.56B	51.95B
EBITDA	42.92B	28.44B	41.34B	37.34B	39.29B	38.31B
Net Income	14.50B	13.69B	13.76B	13.43B	13.58B	13.31B
Balance Sheet
Total Assets	431.85B	409.81B	371.68B	377.12B	374.93B	358.62B
Cash, Cash Equivalents and Short-Term Investments	46.01B	40.42B	25.90B	25.75B	32.30B	20.27B
Total Debt	188.11B	179.78B	145.44B	142.63B	149.61B	142.77B
Total Liabilities	298.54B	283.79B	251.82B	263.23B	266.63B	255.92B
Stockholders Equity	127.11B	120.09B	114.46B	109.10B	103.96B	98.73B
Cash Flow
Free Cash Flow	4.81B	7.19B	15.80B	12.83B	17.21B	21.23B
Operating Cash Flow	15.85B	25.82B	23.51B	19.78B	24.99B	28.06B
Investing Cash Flow	-7.79B	-30.13B	-5.64B	-5.45B	-5.75B	-14.89B
Financing Cash Flow	-360.00M	13.37B	-16.42B	-24.57B	-6.11B	-17.39B

CESC Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 173.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CESC, the sentiment is Negative. The current price of 173.45 is above the 20-day moving average (MA) of 155.38, above the 50-day MA of 153.55, and above the 200-day MA of 162.93, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 17.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CESC.

CESC Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	75 Outperform	₹685.89B	25.60	―	1.48%	-1.26%	27.83%
NTPC	73 Outperform	₹3.61T	14.56	―	2.66%	1.68%	7.60%
CESC	73 Outperform	₹196.91B	19.48	―	3.56%	10.58%	2.69%
ADANIPOWER	67 Neutral	₹2.86T	27.80	―	―	-0.70%	-5.41%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
TATAPOWER	65 Neutral	₹1.24T	39.28	―	0.59%	4.06%	8.22%
JSWENERGY	64 Neutral	₹848.07B	50.05	―	0.41%	39.71%	1.33%

CESC Ltd Corporate Events

CESC awards 600 MW wind-solar hybrid power contracts on 25-year terms

CESC Ltd has issued four Letters of Award to domestic renewable developers for the long-term supply of a total 600 MW of wind-solar hybrid power under a tariff-based competitive bidding process. The awards, made under India’s guidelines for procuring power from grid-connected wind-solar hybrid projects, include a 300 MW contract to subsidiary Purvah Green Power and three 100 MW contracts to Vismaya Renewables, Hexa Climate Solutions and Sprng Energy at tariffs of about Rs 3.74–3.75 per kWh.

Each power purchase agreement will run for 25 years, significantly expanding CESC’s access to renewable capacity and providing long-term tariff visibility. The structure, including a related-party transaction with subsidiary Purvah executed via competitive bidding, underscores CESC’s push to deepen its renewable mix while adhering to regulatory norms, with implications for its generation costs, emissions profile and long-term supply security.

CESC Clarifies NSE Query on Q3 FY26 Financial Result Disclosures

CESC Limited has responded to clarifications sought by the National Stock Exchange regarding its financial results for the quarter and nine months ended 31 December 2025. The company explained that a mismatch in reported total income between PDF and XBRL formats arose because other income and regulatory income were combined under a single head in the XBRL filing, with this treatment disclosed in the template.

CESC also stated that it had already submitted a machine-readable, legible copy of its financial results to the exchange and has reattached it for reference. Additionally, the company confirmed that the results were duly signed by its authorised managing directors for generation and distribution, as per a board resolution dated 6 February 2026, indicating compliance with SEBI’s listing and disclosure regulations.

CESC Announces Demise of Independent Director Sunil Mitra

CESC Ltd has announced the passing of independent director Sunil Mitra on 12 January 2026, informing the stock exchanges in compliance with SEBI’s listing and disclosure regulations. The board highlighted Mitra’s extensive knowledge and experience, noting that his unexpected demise represents a significant loss for the company and expressing condolences to his family, while the change in board composition will likely necessitate future adjustments to its independent director representation in line with regulatory requirements.