Nishat Chunian Power Limited (NCPL) has reported a profit after taxation of Rs558.25 million for the first quarter ended September 30, 2026, supported by a significant increase in electricity generation and contributions from its strategic investments.

According to the company’s latest unaudited financial statements submitted to the Pakistan Stock Exchange (PSX), NCPL recorded revenue of Rs7.006 billion during the quarter, compared with Rs1.367 billion in the corresponding period last year.

Despite the substantial growth in revenue, the company’s profit after taxation increased slightly to Rs558.25 million from Rs552.15 million in the same quarter of the previous year. Earnings per share (EPS) also improved to Rs1.52 against Rs1.50.

Significant Increase in Electricity Generation

The company attributed its higher revenue primarily to increased electricity generation demand from the power purchaser.

During the quarter, Nishat Chunian Power achieved a plant capacity factor of 28.71%, compared with 4.13% in the corresponding period last year. Its availability factor remained strong at 99.64%, slightly higher than 99.57% recorded in the previous year.

The company dispatched 124,080 megawatt-hours (MWh) of electricity during the quarter, compared with only 8,054 MWh in the same period last year.

The higher generation also resulted in increased raw material consumption, contributing to a rise in the company’s cost of sales.

Profitability Remains Stable Despite Higher Costs

NCPL reported gross profit of Rs402.07 million during the quarter, compared with Rs435.73 million in the corresponding period last year.

The increase in operating activity pushed the cost of sales to Rs6.604 billion from Rs930.83 million. Other income also declined to Rs158.51 million from Rs290.88 million.

However, the company benefited from a Rs210.49 million share of profit from its associated investment, helping support its overall earnings.

Profit before taxation stood at Rs611.69 million, while taxation amounted to Rs53.44 million during the reporting period.

Strategic Investments Support Income Diversification

Nishat Chunian Power is also pursuing a strategy to diversify its income beyond traditional power generation.

The company has made equity investments in NexGen Auto (Private) Limited and Rafhan Maize Products Company Limited (RMPL).

These investments have started contributing to its financial performance. NexGen Auto contributed Rs210 million in share of profit during the quarter, based on NCPL’s 33.33% ownership.

Meanwhile, the company received a dividend of approximately Rs42.4 million from its investment in RMPL, marking the beginning of dividend income from this investment.

These developments reflect management’s efforts to establish additional income streams and reduce reliance on its core power generation business.

Receivables and Cash Flow Position

One of the key financial considerations remains the company’s outstanding receivables from the power purchaser.

As of September 30, 2026, trade debts increased to Rs8.144 billion from Rs5.460 billion at the end of June 2026. Out of the total receivables, Rs761 million was overdue, compared with Rs4.802 billion in June 2026.

The company considers these receivables recoverable and secured under a Government of Pakistan guarantee through the Implementation Agreement.

However, operating cash flow remained under pressure. NCPL reported a net cash outflow of Rs644.79 million from operating activities during the quarter, compared with a cash inflow of Rs663.13 million in the same period last year. The increase in trade receivables was a major factor behind this position.

Fuel Market Conditions and Energy Sector Challenges

The company highlighted the strategic importance of furnace oil (RFO)-based power plants amid energy supply challenges arising from the ongoing conflict in the Middle East.

According to the directors’ review report, curtailed RLNG supplies increased reliance on RFO-based electricity generation, highlighting the role of alternative fuel sources in supporting national energy security.

However, the introduction of the Carbon and Petroleum Levy in July 2025 increased RFO prices, affecting the company’s position in the economic merit order and potentially limiting future generation opportunities.

Outlook

Nishat Chunian Power’s first-quarter results reflect a significant improvement in electricity generation and stable profitability. Its investments in NexGen Auto and Rafhan Maize Products have also started contributing to earnings, supporting its diversification strategy.

Going forward, the company’s financial performance will depend on electricity dispatch requirements, fuel price movements, timely recovery of receivables and the contribution of its associated investments.

With a strong plant availability factor and expanding investment income, NCPL is working to strengthen its position in Pakistan’s evolving energy sector.