Engro Powergen Qadirpur's H1 profit slides to Rs346m

July 30, 2026 (MLN): Engro Powergen Qadirpur Limited (PSX: EPQL) reported a 24.7% year-on-year decline in half-year profit to Rs346.408 million for the six months ended June 30, 2026, even as topline revenue climbed 15.3%, as a swing from net finance income to net finance cost and a steeper rise in fuel and operating costs squeezed margins, according to the company's unaudited condensed interim financial statements filed with the Pakistan Stock Exchange.

The Board of Directors, in a meeting held on July 30, 2026 at 10:00 a.m. in Karachi, approved the results along with an interim cash dividend of Rs1.00 per share (10%) for the second quarter, with no bonus or right shares announced.

Revenue for the half year rose to Rs6.064 billion from Rs5.258 billion a year earlier, an increase of about 15.3%, reflecting higher energy sales and/or tariff-linked pass-throughs typical of Engro's Qadirpur gas-fired IPP operations. However, cost of revenue rose faster, up roughly 18.5% to Rs5.465 billion from Rs4.612 billion, compressing gross profit by 7.2% to Rs599.556 million versus Rs646.081 million in the same period last year.

This is a sign that fuel and operating cost inflation outpaced revenue gains during the period.

Administrative expenses were largely flat, up 0.9% to Rs200.731 million from Rs198.975 million, while other expenses fell sharply by 43.9% to Rs17.630 million from Rs31.424 million

Other income also declined, down 77.4% to Rs1.683 million from Rs7.457 million.

Taken together, profit from operations fell 9.5% to Rs382.878 million from Rs423.139 million.

The sharpest drag on profitability came below the operating line: the company swung to a net finance cost of Rs24.110 million in H1CY26 from a net finance income of Rs56.910 million in H1CY25, a swing of roughly Rs81 million, pointing to a mix of lower cash/investment income and elevated short-term borrowing costs during the period.

This swing, more than the operating-cost pressure, explains why profit before taxation fell a steeper 25.3% to Rs358.768 million from Rs480.049 million.

Taxation was lower at Rs12.360 million versus Rs20.127 million a year earlier, down 38.6%, cushioning the decline only marginally.

Profit for the period settled at Rs346.408 million against Rs459.922 million in H1CY25, translating into earnings per share of Rs1.07 versus Rs1.42, down 24.6% year-on-year.

There was no other comprehensive income in either period, so total comprehensive income mirrored the bottom line.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE HALF YEAR ENDED JUNE 30, 2026 (Rs'000)

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