Power Finance Corporation Limited (PFC) has released the 14th edition of its Annual Integrated Rating and Ranking Report for power distribution utilities in India. The report, issued on January 27, 2026, provides a comprehensive assessment of the operational and financial performance of electricity distribution companies across the country.
The latest rating exercise evaluates utilities on a 100-point scale, based on 15 core performance parameters covering operational efficiency, financial sustainability, and governance practices. In addition, nine disincentive factors are applied to account for areas of persistent weakness, with final grades assigned after considering specified overriding conditions.
Based on their overall scores, utilities have been categorised into grades A+, A, B, B-, C, C-, and D. According to the report, 31 power distribution utilities achieved top ratings of A+ or A, reflecting strong performance across key parameters. At the other end of the spectrum, 11 utilities were rated C or C-, indicating continued operational and financial challenges.
Notably, 12 utilities recorded scores above 90 out of 100, highlighting measurable progress in efficiency and service delivery among leading performers.
The report also points to an improvement in sector-wide performance indicators. Aggregate Technical and Commercial (AT&C) losses declined from 15.97 per cent in FY24 to 15.04 per cent in FY25, indicating better loss management and system efficiency. During FY25, billing efficiency stood at 87.59 per cent, while collection efficiency improved to 97 per cent, reflecting stronger revenue realisation by distribution utilities.
PFC stated that the annual integrated rating framework continues to serve as a key benchmarking tool, helping policymakers, utilities, and stakeholders track reforms, identify performance gaps, and promote accountability in the power distribution segment.
