India’s power distribution sector has sharply narrowed aggregate technical and commercial (AT&C) losses to nearly 15% in FY25 from over 25% in FY15 and reduced the average cost of supply-average revenue realised (ACS-ARR) gap to just 6 paise per unit from 89 paise per unit in FY21, but the financial recovery remains uneven and heavily dependent on subsidies, restructuring support and private sector-led gains, according to an SBICAPS report.