CESC Targets Doubling PAT by FY30 with Renewable Expansion and Regulatory Tailwinds

CESC Ltd., part of the RPSG Group, has outlined ambitious growth targets during its 'Investor Day 2025' presentation. The company aims to double its profit after tax (PAT) by FY30, projecting a 15% compound annual growth rate (CAGR). This growth is expected to be driven by significant contributions across all business segments, with a particular focus on renewable energy expansion.

The management has committed to establishing 3.2 GW of wind-solar hybrid capacity by FY29, scaling up to 10 GW by FY32. Initial revenue from the first 1.2 GW capacity is projected at ₹1,200 crore, while the full 3.2 GW phase-one rollout is anticipated to generate ₹3,200 crore in revenue and ₹2,900 crore in EBITDA—reflecting a remarkable 90% margin. Additionally, CESC is investing in a backward-integrated 3 GW solar module and cell manufacturing facility over the next two years.

Strong operating cash FLOW (OCF) growth positions the company to comfortably fund its equity portion of the ₹32,000 crore capex planned over the next 4-5 years. A recent Supreme Court ruling on Discom regulatory assets liquidation is expected to further bolster CESC's financials by enforcing cost-reflective tariffs, with the company's ₹37 billion regulatory asset base likely to benefit significantly.