Abstract—This study evaluates the Technical Efficiency (TE) and Total Factor Productivity (TFP) of 54 Indian Electricity Distribution Utilities (IEDUs) from 2020 to 2023 using Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI). The Charnes-Cooper-Rhodes (CCR) model revealed that only 35.18% of DMUs (19 out of 54) were technically efficient, with average efficiency improving marginally from 0.84 to 0.88. Slack-based inefficiencies resulted in an estimated input overutilization of Rs. 63,270.12 crore, highlighting significant operational inefficiencies. Further examined the Total Productivity (TFP) of IEDUs, revealing a 2.5% improvement in operational efficiency (efficiency change = 1.025), driven by gains in pure efficiency (1.036). Although a 7.6% decline in Technological Change (TECHCH = 0.924), due to outdated infrastructure and regulatory delays, offset these gains. Persistent Aggregate Technical & Commercial (AT&C) losses averaged 17.71%, leading to a 5.3% decrease in TFP. Efficient Decision-Making Units (DMUs) incurred lower costs per million units sold (Rs. 0.776 crores) than inefficient units (Rs. 0.924 crores), underscoring the importance of operational optimization. This study employs a DEA–Malmquist framework on 54 IEDUs during 2020–2023 a reform-critical period encompassing post-UDAY, RDSS, and COVID-19 to quantify inefficiency costs, benchmark peer utilities, and provide strategic direction for enhancing operational performance, financial sustainability, and sector-wide reforms.