PKGP sinks into the red in Q1CY26

April 24, 2026 (MLN):  Pakgen Power Limited (PSX: PKGP) experienced a severe financial contraction for the first quarter ended March 31, 2026, swinging from a net profit of Rs37.40m in the same period last year to a net loss of Rs100.34m.

Reflecting this significant downturn, the company's earnings per share (EPS) turned negative, posting a loss per share of Rs0.52 compared to a positive EPS of Rs0.10 in Q1 2025.

The primary reason for this steep decline was a complete halt in core top-line generation.

PKGP recorded zero revenue from contracts with customers during the quarter, a 100% drop from the Rs925.41m generated in the corresponding period last year.

Correspondingly, the cost of sales also dropped to zero. This total absence of revenue completely wiped out the gross profit, which stood at Rs145.11m in Q1 2025.

Operating without core revenue, the company had to absorb mandatory fixed expenditures. Plant maintenance and preservation costs actually increased by 16% to Rs251.40m from Rs217.21m.

On a positive note, administrative expenses were trimmed by 17% to Rs57.50m, and other expenses dropped by 48% to Rs692,000.

Furthermore, the company leaned heavily on its secondary inflows, with "other income" growing by 11% to Rs231.10m.

However, this non-core income was not sufficient to cover the mounting preservation and administrative costs. Consequently, the company posted an operating loss of Rs78.49m, a sharp reversal from the Rs65.86m operating profit recorded last year.

Below the operating line, finance costs were negligible, dropping 23% to just Rs89,000.

Despite the lack of operational profits, the company still booked a taxation charge of Rs21.76m (down 23% from last year). This tax burden on top of the pre-tax loss (Rs78.58m) pushed the final net loss for the quarter to Rs100.34m.

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