TNPDCL posts Rs 4,060 crore profit, but borrowings cross Rs 1.07 lakh crore

CHENNAI: The Tamil Nadu Power Distribution Corporation Limited (TNPDCL), which has been grappling with mounting financial liabilities, reported a profit of Rs 4,060 crore for 2025-26, nearly double the Rs 2,073 crore recorded in the previous financial year.

However, the improvement in profitability has done little to ease the utility's massive debt burden, with its total borrowings crossing Rs 1.07 lakh crore as of March 31, 2026.

According to the corporation's 17th annual report for 2025-26, TNPDCL's total borrowings stood at Rs 1,07,523 crore, comprising long-term borrowings of Rs 77,565 crore. This was higher than the Rs 1,01,782 crore recorded at the end of the previous financial year.

The company's finance costs also increased substantially, rising 21.4% from Rs 10,517 crore in 2024-25 to Rs 12,770 crore in 2025-26.

The corporation's total income stood at Rs 1,02,037 crore, against Rs 1,00,417 crore in 2024-25 with nearly 32% of income coming from government support (subsidy and grants).

Power purchase continued to be the biggest expenditure component, although the cost declined to Rs 72,348 crore from Rs 75,960 crore. Employee benefit expenses increased to Rs 9,587 crore from Rs 8,976 crore, while depreciation and amortisation expenses stood at Rs 2,256 crore.

Despite the increase in finance costs, the reduction in power purchase expenditure helped the corporation improve its profitability. Total expenses declined marginally to Rs 97,977 crore from Rs 98,344 crore.