Nishat Chunian Power Limited (PSX: NCPL) reported a profit after tax of Rs552.1 million for the quarter ended September 30, 2025, a steep 62.33% decline from Rs1.47 billion in the same period last year.
Key Financial Highlights (Q1 FY26):
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Earnings Per Share (EPS):Â Decreased to Rs1.50 from Rs3.99.
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Revenue:Â Contracted 34.21% to Rs1.37 billion.
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Gross Profit:Â Fell 68.49% to Rs435.7 million, with the margin compressing to 31.9%.
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Profit from Operations:Â Declined 58.19% to Rs622.3 million.
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Net Profit Margin:Â Stood at 40.4%, down from 70.6% in Q1FY25.
The company’s performance was severely impacted by a significant drop in revenue and a substantial rise in production costs.
Simultaneously, the company faced a severe cost shock, with the cost of sales surging by 34.02% to Rs930.8 million. This one-two punch of falling revenue and skyrocketing production costs led to a catastrophic 68.49% plunge in gross profit, which stood at Rs435.7 million. The gross profit margin, a key indicator of operational efficiency, compressed severely to 31.9%, down from a robust 66.6% in the same quarter last year.
A significant 21.64% increase in other income (to Rs290.9 million) and a 21.85% reduction in total operating expenses provided a partial buffer against the operational weakness. However, this relief was insufficient to prevent a 58.19% fall in profit from operations. The bottom line was further pressured by a massive 215.24% increase in the income tax expense, which rose to Rs68.4 million. The net profit margin for the quarter was halved, standing at 40.4% compared to 70.6% last year.
