KAPCO FY26 profit stays flat at Rs2.5bn, declares Rs1.5 final dividend

September 11, 2026 (MLN): Kot Addu Power Company Limited (PSX: KAPCO) recorded a broadly stable net profit for the year ended June 30, 2026, with profit for the year easing marginally by less than 1% to Rs2.52bn from Rs2.54bn in the corresponding period last year.

Showing this broadly flat bottom-line, the company's basic and diluted earnings per share (EPS) contracted marginally to Rs2.86 from Rs2.88 in FY25.

The Board of Directors has announced a final cash dividend of Rs1.50 per share (15%) for the year ended June 30, 2026. This is in addition to interim dividend(s) already paid at Rs1.50 per share (15%).

The top-line underwent a dramatic structural transformation. Revenue surged to Rs19.16bn from Rs1.56bn in the prior year more than twelvefold showing a significant resumption or expansion of power generation operations.

Cost of sales rose in tandem to Rs19.20bn from Rs2.00bn, resulting in a gross loss of Rs38.45m a sharp improvement from a gross loss of Rs438.16m last year, as the gap between revenue and cost of sales narrowed considerably.

On the expenditure side, no plant maintenance and preservation costs were recorded in the current year, against Rs2.27bn in FY25 a substantial saving that significantly aided the below-gross-profit position.

Administrative expenses rose 16% to Rs758.39m, while other operating expenses nearly halved to Rs232.42m from Rs460.94m. Other income declined 31% to Rs4.87bn from Rs7.07bn, though it remained the dominant earnings contributor.

A share of net profit from investment accounted for under the equity method of Rs355.29m was recorded in the current year with no prior year comparable, adding a further positive contribution. Finance cost rose 48% to Rs366.91m from Rs248.36m.

These combined movements pushed profit before levy and income tax up 28% to Rs3.83bn from Rs2.995bn. Levy minimum and final taxes, however, surged to Rs109.55m from Rs22.13m nearly fivefold pulling profit before income tax up 25% to Rs3.72bn from Rs2.97bn.

The factor that absorbed the pre-tax gains was a significantly higher income tax charge. Income tax nearly tripled to Rs1.20bn from Rs436.93m eroding the strong pre-tax improvement and limiting the overall profit movement to a marginal decline of less than 1% for the full year.

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