KAPCO sees steep fall in Q1FY26

October 24, 2025 (MLN): Kot Addu Power Company Limited (PSX: KAPCO) posted a profit after tax of Rs4.88 million for the quarter ended September 30, 2025, showing a sharp decline of 99.6% compared to Rs1.16 billion earned in the corresponding quarter of last year.

The company’s earnings per share (EPS) stood at Rs0.01, down 99.2% from Rs1.32 in the same period of FY24.

During the quarter, revenue from contracts with customers was recorded at Rs4.16bn, while the cost of sales amounted to Rs4.99bn, resulting in a gross loss of Rs831.4m.

In contrast, the company had no reported sales in the same period last year due to plant maintenance and preservation operations amounting to Rs977.8m.

Administrative expenses increased 56.7% year-on-year to Rs221.5m, whereas other operating expenses dropped sharply by 90.6% to Rs21.8m.

Meanwhile, other income a major contributor to KAPCO’s profitability fell 50.8% to Rs1.29bn, compared to Rs2.62bn last year. Consequently, the company’s operating profit contracted 83% to Rs216.1 million from Rs1.27 billion in the same quarter of FY24.

On the financial side, finance costs decreased 97.6% to Rs5 million, providing minimal impact to the bottom line.

Profit before tax declined 80.2% to Rs211.1m, while income tax expense increased to Rs206.2m, compared to a tax charge of Rs98.1m in the prior year.

As a result, KAPCO concluded the quarter with a marginal net profit of Rs4.9m, translating to a net profit margin of just 0.12%, down from 10.9% in the same quarter last year.

The steep fall in earnings primarily stemmed from significantly lower other income and higher administrative costs, despite reduced finance charges during the quarter.

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