Lahore: Nishat Power Ltd (NPL) released its financial results for the third quarter of FY26, revealing a net profit after tax of PkR691 million, equivalent to earnings per share of PkR2.0. This marks a 49 percent year-on-year decline, but an 80 percent increase from the previous quarter. The earnings fell short of expectations, which had projected profits of PkR839 million, primarily due to lower-than-anticipated other income. The company announced an interim cash dividend of PkR1.50 per share for the quarter, bringing the cumulative payout for the first nine months of FY26 to PkR1.5 per share, a significant drop from PkR6.0 per share during the same period last year.
According to AKD Securities Limited, the company's net revenues grew to PkR2.3 billion, which is a 27 percent increase year-on-year and a 104 percent increase quarter-on-quarter. This growth in revenue was attributed to a surge in electricity generation, which rose to 44 gigawatt-hours during the third quarter, up from 21 gigawatt-hours in the corresponding quarter of the previous year. The increase in generation was driven by higher reliance on residual fuel oil-based dispatch due to disruptions in RLNG cargo as a result of geopolitical tensions between Iran and the United States.
Despite the rise in revenues, gross margins fell to 12.4 percent, compared to 20.6 percent in the same period last year and 23.2 percent in the previous quarter. Operating expenses were reported at PkR160 million, a 6 percent increase year-on-year, while other income dropped by 51 percent to PkR238 million, attributed to a lower cash balance and declining investment yields.
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