Saif Power Limited Returns to Profitability with Rs68.69 Million Earnings in Nine Months Ended September 2026

Saif Power Limited (SPWL) has reported a profit after tax of Rs68.69 million for the nine months ended September 30, 2026, marking a significant turnaround from the loss recorded during the corresponding period last year. The company also announced an interim cash dividend of Rs1 per share for the third quarter of 2026.

According to the financial results submitted to the Pakistan Stock Exchange (PSX) on October 26, 2026, the company recorded a loss of Rs161.42 million during the same nine-month period in 2025. The latest results indicate an improvement in its financial performance.

Revenue Declines Despite Return to Profitability

Saif Power Limited’s net turnover declined to Rs4.09 billion during the nine months ended September 2026, compared with Rs7.10 billion in the corresponding period of the previous year.

Gross profit, however, increased to Rs309.76 million from Rs73.12 million a year earlier. This improvement came despite the substantial decline in revenue, reflecting a significant change in the company’s cost structure and gross profitability.

Other income amounted to Rs429.72 million during the period, compared with Rs671.47 million in the corresponding nine months of 2025.

Finance Costs Remain a Key Challenge

The company’s finance costs declined to Rs446.80 million during the nine-month period, down from Rs668.91 million in the same period last year. The reduction helped ease the pressure on earnings.

Administrative expenses increased to Rs274.63 million from Rs237.11 million. The company also recorded a reversal of expected credit losses amounting to Rs50.63 million during the period.

As a result of these changes, profit before tax reached Rs68.69 million, compared with a loss before tax of Rs161.42 million in the corresponding period of 2025. The company reported no income tax expense for the period in the presented financial statements.

Third-Quarter Results Show Improvement

For the quarter ended September 30, 2026, Saif Power Limited reported a profit of Rs11.35 million, compared with a loss of Rs65.67 million in the same quarter of 2025.

Quarterly net turnover stood at Rs1.66 billion, down from Rs2.57 billion a year earlier. Gross profit increased to Rs78.70 million from Rs704,646 in the corresponding quarter.

Finance costs declined to Rs164.02 million from Rs150.66 million?

Dividend Announcement

The company’s board of directors recommended a first interim cash dividend of Rs1 per share, equivalent to 10%, for the third quarter ended September 30, 2026.

The company did not announce any bonus shares, rights shares or other corporate entitlements in the notice submitted to the PSX.

Saif Power Limited also announced that its share transfer books would remain closed from November 4 to November 6, 2026, inclusive. Transfers received by the company’s registrar by the close of business on November 3, 2026, would be considered in time for entitlement purposes.

Financial Position and Cash Flow

As of September 30, 2026, the company’s total assets stood at approximately Rs17.44 billion, compared with Rs17.14 billion at December 31, 2025. Total equity amounted to approximately Rs10.19 billion.

The cash flow statement showed that the company used Rs935.91 million in operating activities during the nine-month period, compared with cash generated of Rs5.14 billion in the corresponding period last year. Cash and cash equivalents stood at Rs207.19 million at the end of September 2026, down from Rs1.20 billion at the beginning of the period.

These figures indicate that, although the company returned to profitability, cash flow and liquidity remain important areas to monitor.

Outlook

Saif Power Limited’s return to profitability represents an improvement over the losses reported in the previous year. Higher gross profit and lower finance costs supported earnings, while declining revenue and negative operating cash flow remain key considerations.

Investors will likely watch the company’s future revenue performance, cost management, financing expenses and cash generation to assess whether the improvement in profitability can be sustained.