Kot Addu Power Posts Rs2.52 Billion Profit for FY2026, Maintains Dividend Payout

Kot Addu Power Company Limited (KAPCO) has reported a profit of Rs2.52 billion for the year ended June 30, 2026, showing relatively stable profitability despite pressure at the operating level.

According to the company’s financial statements, profit for the year stood at Rs2.520 billion, compared with Rs2.536 billion recorded in the previous financial year. This represents a modest decline of around 0.6% year-on-year. Earnings per share also edged down to Rs2.86, compared with Rs2.88 in FY2025.

Other Income Supports Bottom Line

The company’s financial results show a gross loss of Rs38.45 million during the year, compared with a gross loss of Rs438.16 million in FY2025. However, the impact of the operating loss was more than offset by other sources of income.

Other income amounted to approximately Rs4.87 billion, compared with Rs7.07 billion in the preceding year. KAPCO also recorded a Rs355.29 million share of net profit from an investment accounted for under the equity method, while finance costs stood at Rs366.91 million. As a result, profit before levy and income tax reached Rs3.83 billion.

After accounting for levy and final taxes of approximately Rs109.55 million and income tax of Rs1.20 billion, the company reported its final profit of Rs2.52 billion.

Comprehensive Income Improves

Despite the slight decline in annual profit, KAPCO’s total comprehensive income increased to Rs2.657 billion in FY2026 from Rs2.619 billion a year earlier.

The improvement was supported by other comprehensive income of Rs137.25 million, including the re-measurement of the net defined benefit obligation, partly offset by the share of other comprehensive income from an equity-accounted investment.

Dividend Distribution Continues

The company also continued to return funds to shareholders during the year.

For FY2026, KAPCO recorded a final dividend of Rs2.50 per share, amounting to approximately Rs2.20 billion, while an interim dividend of Rs1.50 per share represented around Rs1.32 billion. Together, the two payments amounted to approximately Rs3.52 billion.

This indicates that the company maintained a meaningful dividend payout despite the modest decline in annual earnings.

Cash Position Strengthens

KAPCO’s cash position also improved considerably during the year. The company ended FY2026 with Rs4.62 billion in cash and cash equivalents, compared with Rs1.37 billion at the end of FY2025.

The cash flow statement shows that the company generated approximately Rs9.65 billion from financing activities, largely reflecting long-term borrowings of Rs13.15 billion, while dividend payments amounted to about Rs3.50 billion. Investing activities used approximately Rs271.8 million during the year.

The stronger year-end cash balance provides the company with additional liquidity, although the financial statements also show significant movements in deposits, investments and financing during the year.

Overall Performance

KAPCO’s FY2026 results present a mixed but relatively stable picture. While annual profit and earnings per share were slightly lower than the previous year, the company recorded higher total comprehensive income and ended the year with a substantially stronger cash balance.

The continued dividend payments will also remain an important point for shareholders, particularly given the company’s ability to distribute dividends while maintaining profitability.