3 Stocks to Watch as Electricity Amendment Bill 2025 May Be Tabled in the Budget Session

The government is preparing to table the Electricity Amendment Bill, 2025 in the upcoming Budget Session, setting the stage for a major overhaul of India's power distribution sector, according to a Business Today report.

Ahead of its introduction, the Ministry of Power will begin consultations with key stakeholders to build consensus on the proposed changes.

The Bill aims to replace the monopoly-based distribution model with regulated competition, allowing multiple licensees to operate in the same area using shared network infrastructure to improve efficiency, financial sustainability and consumer choice.

The reform push comes amid persistent challenges at the discom level, including high AT&C losses, weak billing efficiency and tariff distortions that have strained state-run utilities.

Under the proposed framework, State Electricity Regulatory Commissions will enforce cost-reflective tariffs and uniform wheeling charges, mirroring the competitive transmission model that has improved efficiency in power transmission.

Against this backdrop, here are three stocks to watch.

#1 Tata Power

First on the list is Tata Power. It is one of India's largest integrated power companies, part of the Tata Group.

Its Transmission & Distribution (T&D) segment is the company's largest revenue driver, accounting for around 60% of total revenue in FY25.

For the full year, Tata Power reported a record consolidated revenue of Rs 645 billion (bn), of which the T&D business contributed Rs 391 bn.

The company serves millions of consumers across cities such as Delhi and Mumbai, supported by advanced smart grid and digital distribution infrastructure, while also maintaining a strong presence in power generation and renewables.

This makes Tata Power a stock to watch as the Electricity Amendment Bill, 2025 directly targets reforms in power distribution, where the company has a strong and scalable presence.

However, the pace and impact of implementation will hinge on state-level cooperation and clarity around cost-sharing mechanisms.

On the financial front, the company's revenue has grown at a CAGR of 15.2%, while profit has seen growth of 22.1% in the past three years.

Its three-year average ROE and ROCE stand at 13.3% and 15.1% respectively.

Tata Power Financial Snapshot (FY23-25)

Source: Equitymaster

Going forward, according to the company's FY25 annual report, Tata Power aims to strengthen its presence in transmission by securing more projects through tariff-based competitive bidding (TBCB), while also looking to expand its distribution business as new opportunities emerge.

For more details, see the Tata Power company fact sheet and quarterly results.

#2 Torrent Power

Next on the list is Torrent Power.

Torrent Power is one of the leading players in the Indian power sector. With an all-round experience in generation, transmission and distribution of power, and a proven track record of implementing large power projects, the company is the most experienced private sector player in Gujarat.

Torrent Power's business is heavily skewed towards transmission and distribution. As per a disclosure, the Transmission and Distribution (T&D) segment accounts for 85.59% of the company's total turnover, making it the dominant contributor to overall revenues.

Torrent Power emerges as a stock to watch amid the Electricity Amendment Bill, 2025, given its heavy exposure to the transmission and distribution segment.

With nearly 86% of its turnover coming from T&D, any move towards regulated competition, cost-reflective tariffs and shared network infrastructure could have a direct bearing on its core business performance.

On the financial front, its revenue has grown at a CAGR of 26.9%, while profit has seen growth of 88.2% in past three years.

Its three-year average ROE and ROCE stand at 17.6% respectively.

Torrent Power Financial Snapshot (FY23-25)

Source: Equitymaster

Going forward, the company plans to expand the reach of its distribution business by pursuing opportunities in distribution privatisation, parallel licensing and franchisee models.

For more details, see the TORRENT POWER company fact sheet and quarterly results.

#3 CESC

Last on the list is CESC.

CESC Limited, a flagship company of the RP-Sanjiv Goenka Group.

The Calcutta Electric Supply Corporation Limited (a sterling company), was India's first fully integrated electrical utility company, playing a key role in the generation, transmission and distribution of electricity.

In West Bengal, the company holds an exclusive position as the sole electricity distributor within its licensed area, covering 567 square kilometres across Kolkata, Howrah and surrounding regions. It serves approximately 3.4 - 6 million (m) consumers.

CESC is a stock to watch amid the Electricity Amendment Bill, 2025, as the proposed push towards competition and parallel distribution could alter the dynamics in licensed distribution areas.

Any regulatory shift in tariffs, wheeling charges or licensing norms could have a direct impact on its core, distribution-led business.

On the financial front, the company's revenue has grown at a CAGR of 4.8%, while profit has seen growth from Rs 145,060 m in FY23 to Rs 205,350 in FY25 in past three years.

Its three-year average ROE and ROCE stand at 20.7% and 27.6% respectively.

CESC Financial Snapshot (FY23-25)

Source: Equitymaster

Going forward, the company plans to strengthen energy efficiency across operations.

For more details, see the CESC company fact sheet and quarterly results.

Conclusion

India has unveiled a comprehensive plan worth Rs 9.15 trillion (tn) (US$ 109.5 billion) to strengthen its power infrastructure and meet a projected electricity demand of 458 GW by 2032.

Led by the Ministry of Power, the initiative focuses on expanding and modernising the national grid to improve reliability, efficiency and energy security.

This push is expected to support long-term growth for transmission and distribution (T&D) companies.

However, the pace of benefits will depend on timely execution, regulatory clarity and state-level cooperation.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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