Nishat Power Returns to Profitability with Rs2.48 Billion Earnings in FY2026

Nishat Power Limited (NPL) has reported a significant improvement in its financial performance for the year ended June 30, 2026, turning a loss recorded in the previous year into a profit after tax of Rs2.48 billion.

According to the company’s financial results submitted to the Pakistan Stock Exchange, Nishat Power recorded profit after taxation of Rs2.483 billion during FY2026, compared with a loss after tax of Rs746.8 million in FY2025. Earnings per share also improved substantially, rising to Rs7.01 per share from a loss of Rs2.11 per share in the preceding year.

Revenue rises sharply

The company’s revenue from contracts with customers increased to approximately Rs11.02 billion in FY2026, compared with Rs7.06 billion a year earlier.

Despite the increase in revenue, gross profit declined to around Rs1.38 billion from Rs2.66 billion in FY2025, reflecting a substantial rise in the cost of sales. Administrative expenses stood at Rs637.2 million, while other expenses amounted to Rs386.6 million.

Other income remained a major contributor to the company’s overall earnings, reaching approximately Rs1.45 billion during the year.

Profitability makes a strong turnaround

Nishat Power reported profit from operations of Rs1.81 billion for FY2026, compared with Rs3.52 billion in FY2025.

The company also recorded a significant contribution from its associate investment. Its share of net profit from an associate accounted for under the equity method amounted to approximately Rs1.30 billion during FY2026.

As a result, profit before levy and taxation reached approximately Rs3.04 billion, compared with a loss of Rs375.6 million in the previous year. After accounting for taxation of Rs555.4 million, the company posted a net profit of Rs2.48 billion.

Final dividend announced

Alongside the financial results, the Board of Directors recommended a final cash dividend of Re1 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 during the year.

The company did not recommend any bonus shares or right shares. No other entitlement was announced.

Share transfer books to remain closed

Nishat Power announced that its Ordinary Shares Transfer Books will remain closed from October 16 to October 23, 2026, both days inclusive, for entitlement to the final cash dividend and participation in the Annual General Meeting.

Shareholders whose names appear in the Register of Members at the close of business on October 15, 2026 will be entitled to the final dividend and will be eligible to attend and vote at the AGM.

The Annual General Meeting is scheduled for October 23, 2026, at 11:00 a.m. at Emporium Mall, The Nishat Hotel, Trade and Finance Centre Block, Near Expo Centre, Abdul Haq Road, Johar Town, Lahore.

Balance sheet expands

The company’s total assets increased to approximately Rs35.52 billion as of June 30, 2026, compared with Rs29.15 billion at the end of FY2025.

The financial position statement also shows issued and paid-up share capital of approximately Rs3.54 billion, while total equity stood at approximately Rs29.50 billion.

Cash flow remains a key area

While profitability improved considerably, the cash-flow statement presents a different picture. Nishat Power reported net cash used in operating activities of approximately Rs4.95 billion during FY2026, compared with net cash generated from operations of Rs12.34 billion in FY2025.

The company also recorded net cash generated from investing activities of approximately Rs1.32 billion. Financing activities used around Rs530.4 million, primarily reflecting dividends paid.

Cash and cash equivalents stood at a negative balance of approximately Rs4.77 billion at June 30, 2026, compared with negative Rs606.8 million a year earlier, with short-term borrowings accounting for a substantial portion of the reported position.

Overall, Nishat Power’s FY2026 results show a notable return to profitability, supported by higher revenue, other income and earnings from its associate investment. At the same time, the financial statements highlight significant changes in operating cash flows and short-term borrowings that remain important aspects of the company’s financial position.