KAPCO 9MFY26 profit declines 37%
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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