In a landmark financial turnaround, India's power distribution utilities (DISCOMs) have collectively reported a net profit of ₹2,701 crore for the fiscal year 2024-25. This significant achievement marks the first time in many years that the sector has moved into profitability, reversing a long-standing trend of substantial losses. For context, the utilities had reported a collective loss of ₹25,553 crore in FY24 and ₹67,962 crore in FY14, highlighting the scale of this financial recovery. The Ministry of Power has attributed this positive shift to a series of comprehensive reforms and initiatives implemented to address the chronic financial and operational challenges faced by the distribution sector. Key performance indicators show marked improvement, with Aggregate Technical & Commercial (AT&C) losses, which include power theft and transmission losses, reducing from 22.62 percent in FY14 to 15.04 percent in FY25. Furthermore, the Average Cost of Supply–Average Revenue Realized (ACS–ARR) gap, a critical measure of financial health, has significantly narrowed from ₹0.78 per kWh in FY14 to just ₹0.06 per kWh in FY25, indicating improved cost recovery. Policy interventions such as the Electricity (Late Payment Surcharge) Rules have played a crucial role, leading to a remarkable 96 percent reduction in outstanding dues owed by DISCOMs to generating companies, falling from ₹1,39,947 crore in 2022 to ₹4,927 crore by January 2026. Additionally, the average payment cycles for distribution utilities have improved considerably, decreasing from 178 days in FY21 to 113 days in FY25. Power Minister Manohar Lal commented that this marks a new chapter for the distribution sector and is a result of several steps taken by the ministry to redress the concerns of the distribution sector.