Mumbai’s Brihanmumbai Electric Supply and Transport Undertaking (BEST) has reduced its net deficit by 46 per cent to Rs 731.97 crore in 2025-26, down from Rs 1,361.85 crore in the previous financial year, according to its final accounts and a press note issued by the undertaking on Monday.
The reduction in the deficit was Rs 622 crore compared with 2024-25. BEST’s electricity division reported a surplus of Rs 442.90 crore during 2025-26, marking a 22.50 per cent increase over the previous year.
The transport division, however, continued to report a deficit of Rs 1,182.87 crore. That loss was 31 per cent, or Rs 541 crore, lower than the previous year. BEST attributed the improvement to a fare revision and other decisions taken earlier.
Income from ticket sales on hired buses increased by Rs 235.30 crore during the year. Other transport income rose by Rs 48.55 crore, while general administration expenses in the transport division declined by Rs 33.45 crore.
The figures cover both sides of BEST’s role in Mumbai’s urban system: its electricity business and its public transport operations. While the electricity division generated a surplus, the bus service remained loss-making despite the narrower deficit. The financial performance therefore reflects different pressures across the undertaking’s utility and mobility functions.
BEST’s electricity division also reported a reduction in expenses of Rs 244.31 crore. The undertaking said this included reductions of Rs 166.92 crore in power-purchase costs, Rs 1.61 crore in administration and general expenses, Rs 16.89 crore in interest on consumers’ security deposits, Rs 111.78 crore in interest on loans and Rs 1.84 crore in general administration expenses.
The undertaking is also planning to increase the share of renewable energy in its electricity portfolio. In September, BEST signed a 25-year Power Purchase Agreement with the Solar Energy Corporation of India for 220 MW of solar power backed by 110 MW/440 MWh of energy storage.
The agreement provides renewable power at a fixed tariff of Rs 2.78 per unit over the 25-year period. BEST’s total power demand is around 1,000 MW, with 33 per cent of its requirement currently met through renewable sources. The latest procurement is expected to raise that share to 43 per cent.
The solar power will be generated by renewable energy developers in Maharashtra and supplied through the state grid. The battery storage component will allow electricity generated during the day to be stored for use during evening peak-demand periods.
After adjusting a prior-period credit of Rs 331.74 crore against the year’s deficit, BEST’s accumulated deficit stood at Rs 6,534.75 crore as of March 31, 2026. The latest accounts show a substantial year-on-year reduction in the annual shortfall, while also confirming that the transport division remains the undertaking’s main loss-making operation.
