KAPCO 9MFY26 profit declines 37%

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MG News | April 27, 2026 at 02:21 PM GMT+05:00

April 27, 2026 (MLN):  Kot Addu Power Company Limited (PSX: KAPCO) reported a 37% decline in its net profit for the nine-month period ended March 31, 2026, recording Rs1.51bn compared to Rs2.41bn in the corresponding period last year.

Reflecting this bottom-line contraction, the power company's earnings per share (EPS) dropped to Rs1.72 from Rs2.73 in 9MFY25.

The nine-month financials vividly illustrate the financial toll of KAPCO's transition back to active operations.

Unlike the same period last year, where the company recorded zero revenue and instead booked a massive Rs1.91bn in "plant maintenance and preservation costs," KAPCO generated a top-line revenue of Rs9.97bn during this nine-month period.

However, the cost of sales severely outpaced this resumed revenue, coming in at a heavy Rs10.51bn. As a result, the company recorded a gross loss of Rs545.76m.

At the operating level, the elimination of the preservation costs provided some relief, and other operating expenses were reduced by 40% to Rs171m.

However, administrative expenses rose by 16% to Rs592.74m.

The most significant drag on operational profitability was a sharp 36% decline in "other income," which fell to Rs3.66bn from a robust Rs5.68bn in the prior year.

Weighed down by the gross loss and shrinking secondary income, the operating profit contracted by 21% to Rs2.35bn.

Below the operating line, KAPCO found substantial relief in its debt servicing. Finance costs plummeted by 87%, dropping to just Rs30.56m from Rs242.82m in 9MFY25.

Despite these massive savings in financial charges, the profit before income tax still registered a 15% decline, settling at Rs2.32bn.

The final blow to the bottom line was delivered by taxation. The company faced a steep 146% surge in its income tax expense, which consumed Rs807.79m compared to just Rs328.31m last year.

This heavy fiscal burden amplified the pre-tax dip, pushing the final net profit for the nine months down by 37% to Rs1.51bn.

STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTH ENDED MARCH 31, 2026 (Rs.000)

Description

2026

2025

change %

Revenue from contract with customer

9,968,773

-

Cost of sales

(10,514,530)

-

Gross loss

(545,757)

-

Plant maintenance and preservation costs

-

(1,912,612)

Administrative expenses

(592,741)

(509,155)

16%

Other operating expenses

(171,001)

(284,922)

-40%

Other income

3,662,388

5,684,474

-36%

Operating profit

2,352,889

2,977,785

-21%

Finance cost

(30,563)

(242,824)

-87%

Profit before levy and income tax

2,322,326

2,734,961

-15%

Levy - final tax

-

(897)

Profit before income tax

2,322,326

2,734,064

-15%

Income Tax

(807,785)

(328,309)

146%

Profit for the period

1,514,541

2,405,755

-37%

Earnings per share - basic and diluted (Rupees)

1.72

2.73

-37%

 

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