In a sector long defined by mounting losses and tariff stress, a quiet shift is underway. State power distribution companies are not just cutting procurement costs through power exchanges but also beginning to convert market participation into measurable profits. The numbers underline the transition. Improved liquidity on exchanges — driven by mandatory offering of un-requisitioned surplus power, higher hydro and wind output, and sustained coal generation — has pushed prices down sharply. At IEX, during the first 10 months of the current financial year, the average day-ahead market (DAM) clearing price stood at `3.85 per unit, down 14% year-on-year, while the real-time market (RTM) averaged Rs 3.58 per unit, a 16% drop. For cash-strapped discoms, this correction has materially altered procurement economics.