CESC Limited first-half capex rises 82% to Rs 2,010 crore

CESC Limited spent Rs 2,010 crore on property, plant and equipment and capital work-in-progress in the six months ended September 30, 2026, up 82% from Rs 1,104 crore a year earlier. CESC generated Rs 1,384 crore of operating cash flow, while cash and cash equivalents fell Rs 1,444 crore to Rs 2,764 crore.

How much did CESC spend on capital expenditure?

CESC spent Rs 2,010 crore on property, plant and equipment and capital work-in-progress in the six months ended September 30, 2026, compared with Rs 1,104 crore in the corresponding six months of 2025. The Rs 906 crore increase lifted net cash used in investing activities to Rs 1,973 crore from Rs 779 crore.

The carrying value of property, plant and equipment, including right-of-use assets, rose to Rs 22,836 crore at September 30, 2026 from Rs 21,724 crore at March 31, 2026. Capital work-in-progress increased to Rs 2,969 crore from Rs 2,905 crore, taking the combined balance up Rs 1,176 crore during the half-year.

How was CESC's investment outlay funded?

CESC generated Rs 1,384 crore of net cash from operating activities in the six months ended September 30, 2026, which was Rs 626 crore below its Rs 2,010 crore capital-spending payment. After other investment movements, the group recorded a Rs 1,973 crore net investing cash outflow.

Operating cash flow declined Rs 201 crore from Rs 1,585 crore in the comparable 2025 period. Trade and other receivables used Rs 1,083 crore of cash, regulatory deferral account balances used Rs 279 crore, and income-tax payments were Rs 162 crore; trade and other payables provided Rs 543 crore.

Other investing flows partly offset the capital-spending payment. CESC reported Rs 113 crore of net proceeds from current investments, Rs 3 crore from sale of property, plant and equipment and Rs 36 crore of interest received, while bank balances other than cash and cash equivalents used Rs 115 crore.

Why did CESC's cash balance fall by Rs 1,444 crore?

CESC's cash and cash equivalents declined by Rs 1,444 crore because its Rs 1,973 crore investing outflow and Rs 855 crore financing outflow exceeded the Rs 1,384 crore operating inflow. The closing cash balance was Rs 2,764 crore at September 30, 2026, against Rs 4,208 crore at March 31, 2026.

Financing activities included Rs 804 crore of dividend payments, substantially above Rs 10 crore in the prior-year half, and Rs 739 crore of finance costs paid, compared with Rs 794 crore. CESC also paid Rs 25 crore of lease liabilities and received Rs 11 crore from equity or preference shares issued by a subsidiary.

Cash and cash equivalents were not the only liquid balance-sheet item. Bank balances other than cash and cash equivalents rose to Rs 1,479 crore from Rs 1,364 crore, while current investments fell to Rs 33 crore from Rs 99 crore. Trade receivables increased Rs 762 crore to Rs 3,178 crore at September 30, 2026.

Did CESC raise borrowings during the half-year?

CESC's combined current and non-current borrowings increased Rs 698 crore to Rs 22,017 crore at September 30, 2026 from Rs 21,319 crore at March 31, 2026. Non-current borrowings rose Rs 891 crore to Rs 16,183 crore, while current borrowings fell Rs 193 crore to Rs 5,834 crore.

The cash-flow statement recorded Rs 1,241 crore of proceeds from non-current borrowings and Rs 1,017 crore of repayments in the 2026 half-year. These figures were net of Rs 1,190 crore used for refinancing borrowings, compared with Rs 550 crore in the previous period, while cash credit facilities and other current borrowings increased Rs 478 crore.

Non-current lease liabilities increased to Rs 396 crore from Rs 308 crore, and consumers' security deposits rose to Rs 2,731 crore from Rs 2,600 crore. Total assets increased to Rs 47,882 crore from Rs 46,470 crore, while total equity decreased to Rs 13,158 crore from Rs 13,189 crore.

What did CESC report on first-half operating performance?

CESC reported profit for the period of Rs 857 crore for the six months ended September 30, 2026, compared with Rs 855 crore a year earlier. Revenue from operations rose to Rs 11,092 crore from Rs 10,469 crore, and profit before tax increased to Rs 1,132 crore from Rs 1,081 crore.

Finance costs in the income statement declined to Rs 647 crore from Rs 700 crore despite the Rs 698 crore rise in combined borrowings at the reporting date. Depreciation and amortisation fell to Rs 587 crore from Rs 616 crore, while net regulatory income decreased to Rs 279 crore from Rs 305 crore.

CESC said it is primarily engaged in electricity generation and distribution and does not operate another reportable segment. The results included a Rs 80 crore provision, net of unwinding of discount impact, for certain old regulatory asset balances; regulatory deferral account balances rose to Rs 9,014 crore from Rs 8,666 crore.

Conclusion

CESC's first-half cash flows show investment payments of Rs 2,010 crore exceeded the Rs 1,384 crore generated from operations, while dividend payments of Rs 804 crore added to the financing cash outflow. The combined effect was a Rs 1,444 crore reduction in cash and cash equivalents, alongside a Rs 698 crore increase in combined borrowings.

The next disclosed developments include the proposed amalgamation of RPSG Energy Services Limited into Purvah Green Power Private Limited, with an appointed date of October 1, 2026 and subject to approvals. Purvah Green Power Private Limited also signed an August 10, 2026 agreement to acquire six ReNew target companies, subject to conditions precedent, while regulatory appeals disclosed by CESC remain pending.