The financial health of power distribution companies (DISCOMs) in India remains a critical concern due to persistent losses, operational inefficiencies, and structural challenges. This paper evaluates the financial performance of DISCOMs using key indicators such as profitability, liquidity, solvency, and operational efficiency. A comparative analysis between public and private DISCOMs is conducted to identify variations in performance. The study concludes that while private DISCOMs show relatively better financial discipline, public DISCOMs continue to struggle due to socio-economic obligations and policy constraints. The power distribution sector plays a vital role in the economic and infrastructural development of India. Financial sustainability of power distribution companies (DISCOMs) is essential for maintaining reliable electricity supply and supporting national development. This study examines the financial sustainability and corporate performance of public and private power distribution companies in India. Using financial ratio analysis and comparative evaluation, the study assesses profitability, liquidity, solvency, and operational efficiency indicators of selected companies. Secondary data has been collected from annual reports, government publications, and industry reports. The findings reveal that private distribution companies tend to demonstrate higher operational efficiency and better financial performance due to improved management practices and technology adoption, while public sector DISCOMs face structural challenges such as high Aggregate Technical and Commercial (AT&C) losses, subsidy burdens, and delayed tariff revisions. However, recent reforms and government initiatives have significantly improved the financial position of many DISCOMs. The study highlights the importance of policy reforms, improved governance, and technological innovation to ensure long-term financial sustainability in India’s power distribution sector