Nishat Chunian reports over Rs3bn loss on CPPA-G adjustment

September 29, 2025 (MLN): Nishat Chunian Power Limited (PSX: NCPL) has reported a staggering net loss of Rs3.37 billion for the fiscal year ended June 30, 2025, a dramatic reversal from the Rs4.912bn profit recorded in the previous year.

The company's massive swing into the red is overwhelmingly attributed to a colossal, one-time adjustment of Rs5.713bn related to the balance payable to the Central Power Purchasing Agency Guarantee Limited (CPPA-G).

This significant financial hit, a direct result of the renegotiation of Power Purchase Agreements (PPAs) in the Independent Power Producer (IPP) sector, has overshadowed all operational performance.

The impact is starkly reflected in the company's Earnings Per Share (EPS), which turned from a positive Rs13.37 to a negative Rs9.19.

Before the massive CPPA-G adjustment, NCPL’s operational results showed mixed performance.

Revenue from contracts with customers saw a precipitous drop of 63.4%, falling from Rs15.21bn in 2024 to just Rs5.56bn in 2025.

Despite a sharp 63.4% plunge in revenue (from Rs15.215bn to Rs5.566bn), the company showed a significant improvement in its core operating efficiency.

The Gross Profit for the year declined by 55.9% (falling from Rs4.88bn to Rs2.15bn) as the drop in revenue was offset by a corresponding 67% reduction in the Cost of Sales.

This efficient cost management is reflected in the Gross Margin, which improved significantly, rising to 38.74% in 2025 from 32.13% in 2024.

The company managed to maintain a strong Profit from Operations of Rs2.58bn, a decrease of approximately 49.8% compared to Rs5.15bn in the previous year.

A major positive change was the dramatic 93.6% reduction in Finance Cost, which dropped from Rs227.66m to a mere Rs14.68m, suggesting reduced debt exposure or lower interest rates.

Other Income provided a substantial offset, surging by 88.1% to Rs856.76m from Rs455.37m in the previous year. 

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