Nishat Chunian Power Limited (NCPL) has reported a significant improvement in its bottom line for the financial year ended June 30, 2026, posting a profit after taxation of Rs2.48 billion, compared with a loss of Rs3.38 billion in the previous financial year.
According to the company’s financial results, revenue from contracts with customers increased substantially to Rs9.43 billion in FY2026, compared with Rs5.57 billion in FY2025. This represents an increase of around 69%. However, the higher revenue was accompanied by a sharp rise in the cost of sales, which reached Rs7.95 billion during the year.
Profitability improves despite pressure on gross margins
NCPL recorded a gross profit of Rs1.47 billion in FY2026, compared with Rs2.16 billion a year earlier. The decline indicates that the increase in revenue was more than offset at the gross-profit level by higher costs.
Administrative expenses rose to Rs477.08 million, while other expenses stood at Rs251.03 million. At the same time, the company reported other income of Rs911.12 million, contributing to profit from operations of approximately Rs1.66 billion.
The company also reported finance costs of Rs27.41 million for the year.
A notable factor in the financial performance was the share of net profit of an associate accounted for using the equity method, amounting to approximately Rs1.30 billion. This helped lift profit before taxation to Rs2.93 billion.
After taxation of Rs452.82 million, NCPL posted a profit after tax of Rs2.48 billion, compared with a loss of Rs3.38 billion in FY2025. Earnings per share consequently improved to Rs6.75, against a loss per share of Rs9.19 in the preceding year.
Final cash dividend announced
Along with the annual financial results, the company’s Board recommended a final cash dividend of Rs1 per share, equivalent to 10%, for the year ended June 30, 2026.
The final dividend is in addition to the 15% interim cash dividend already paid, according to the company’s announcement. No bonus shares or right shares were recommended.
The entitlement will be available to shareholders whose names appear in the Register of Members at the close of business on October 8, 2026. The company’s share transfer books are scheduled to remain closed from October 9 to October 23, 2026, inclusive.
Annual General Meeting scheduled for October 23
NCPL has scheduled its Annual General Meeting for October 23, 2026, at 11:30 a.m. The meeting will be held at Emporium Mall, The Nishat Hotel, Trade and Finance Centre Block, Near Expo Centre, Abdul Haq Road, Johar Town, Lahore.
The company said its audited annual report would be transmitted through PUCARS at least 21 days before the AGM.
Cash flow remains an important consideration
While profitability improved considerably, the cash-flow statement presents a different picture. NCPL reported net cash used in operating activities of Rs4.25 billion during FY2026, compared with net cash generated from operating activities of Rs8.37 billion in FY2025.
Investing activities generated net cash of approximately Rs2.17 billion, largely reflecting proceeds from disposal of investments. Financing activities used Rs552.77 million, primarily due to dividend payments.
As a result, cash and cash equivalents declined from Rs624.08 million at the beginning of the year to a negative position of approximately Rs3.26 billion at year-end when short-term borrowings were taken into account. The financial statements show cash and bank balances of Rs48.20 million against short-term borrowings of Rs3.31 billion.
A major turnaround in annual earnings
NCPL’s FY2026 results therefore show a substantial turnaround in reported earnings. Revenue expanded strongly and the company moved from a sizeable annual loss to a multi-billion-rupee profit. The improvement was supported by other income and the contribution from an associate, although gross profit declined from the previous year and operating cash flow remained negative.
For shareholders, the company has recommended a 10% final cash dividend, bringing the year’s announced cash distributions to 25% when combined with the previously paid 15% interim dividend.
Overall, the FY2026 financial statements highlight a year of strong revenue growth and a return to profitability, alongside continued pressure on margins and cash flows. The company’s upcoming AGM on October 23 will provide shareholders an opportunity to consider the financial results and proposed final dividend.
