New Delhi, Jan. 20 -- India's power distribution sector which has been reeling under high debt and operational losses for several years returned to profits in fiscal 2025. In FY25, distribution utility companies, collectively called discoms, reported a net profit of Rs.2,701 crore compared to a loss of Rs.25,553 crore in the year before, according to data recently released by the power ministry.

Mint explains the current financial health of the discoms and the factors behind their revival.

A. After over 10 years of losses, discoms reported a cumulative net profit of Rs.2,701 crore for FY25. The distribution sector, however, continues to be been under severe financial stress with a cumulative debt of over Rs.7 trillion-of which, accordin...