Nishat Power posts sharp 65% profit decline

October 28, 2025 (MLN): Nishat Power Limited (PSX: NPL), a key independent power producer (IPP) in Pakistan, reported a profit after tax of Rs584.3 million for the quarter ended September 30, 2025, showing a decline of 64.63% compared to Rs1.65bn in the same period last year.

Earnings per share (EPS) fell 64.67% to Rs1.65, down from Rs4.67 in the corresponding quarter of 2024.

The company’s revenue from contracts with customers dropped sharply by 38.78% year-on-year to Rs1.67bn, compared to Rs2.73bn last year, primarily due to lower dispatch or reduced tariff realization.

Despite the decline in revenue, the cost of sales only eased 2.95% to Rs1.28bn, resulting in a steep contraction in gross profit, which plunged 72.32% to Rs390.6m from Rs1.41bn in the prior-year quarter. Consequently, gross margin fell significantly to 23.4% from 51.6% a year earlier.

Administrative expenses increased 4.66% to Rs129.3m, while other income slipped slightly by 1.88% to Rs435.9m.

The company’s profit from operations stood at Rs697.2m, down 59.74% from Rs1.73bn last year.

Meanwhile, finance cost increased 29.66% to Rs7.0m, showing higher borrowing costs during the quarter.

After accounting for a tax expense of Rs105.4m up a sharp 473.84% from Rs18.4m in the corresponding quarter, profit before taxation declined 58.71% to Rs689.7m, leading to a profit after taxation of Rs584.3m.

The net profit margin fell to 34.9%, compared to 60.5% in the same quarter of 2024.

The quarterly results indicate that Nishat Power faced pressure from declining electricity dispatches, compressed margins, and elevated taxation, offsetting the support from steady other income and controlled operating expenses.

The company continues to play a vital role in Pakistan’s power generation landscape as part of the Nishat Group’s energy portfolio, ensuring reliable electricity supply to the national grid.

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