Lahore: Nishat Chunian Power Limited has reported a notable financial turnaround for the fiscal year ending June 30, 2026. The company disclosed an annual revenue of PKR 9.43 billion, a substantial increase from PKR 5.57 billion in the previous year. This financial leap is coupled with a net profit of PKR 2.48 billion, a significant recovery from the net loss of PKR 3.38 billion recorded in FY 2025. The directors attributed this positive shift to increased generation demand and strategic diversification efforts.
According to the detailed financial disclosures, the company's annual report, dated October 1, 2026, has been made available through PUCARS and the company's website. The directors highlighted that the improved revenue was driven by heightened electricity generation, with the plant's capacity factor rising to 8.91% from 3.34% in the previous fiscal year. This increase in operational activity resulted in the dispatch of 152,789 MWH of electricity, a significant rise from the 57,209 MWH dispatched in 2025.
The energy sector's dynamics played a crucial role in the company's performance. The ongoing conflict in the Middle East led to an energy crisis, boosting the strategic importance of RFO-based power generation. The shift in demand from RLNG to RFO was significant, as RFO-based plants, including Nishat Chunian Power, became vital for national energy security. However, the introduction of a Carbon and Petroleum Levy in July 2025 impacted RFO prices, presenting economic challenges for RFO-based power generation companies.
Strategically, Nishat Chunian Power Limited has diversified its investments. The company made an equity investment in NexGen Autos (Private) Limited, a manufacturer of New Energy Vehicles. This move aligns with the shift towards sustainable transport solutions. Additionally, the company acquired a 7.65% share in Rafhan Maize Products Company Limited, further diversifying its portfolio. These moves are designed to mitigate risks associated with reliance on thermal power generation and to capture emerging market opportunities.
A significant element of the company's improved liquidity and investment capability was the settlement of past dues by the Power Purchaser, as per the Amendment Agreement signed by the company along with other Independent Power Producers. As of June 30, 2026, receivables from the Power Purchaser stood at PKR 5.459 billion, of which PKR 4.802 billion is overdue.
The company's financial statements reveal a total asset valuation of PKR 29.23 billion, with current liabilities amounting to PKR 3.85 billion. The company's net worth increased to PKR 25.15 billion from PKR 23.23 billion in the previous year. Financial measures such as the Return on Equity (ROE) at 9.86% and a net debt equity ratio of 0.13 times reflect the company's improved financial health.
According to information available from the Pakistan Stock Exchange (PSX), the company's shares have shown resilience with a dividend payout of 37%, offering shareholders PKR 1 per share as a final dividend, in addition to the previously declared interim dividend of PKR 1.50 per share.
Nishat Chunian Power Limited has also maintained its focus on corporate social responsibility, environmental protection, and employee safety. The company is committed to sustainable operations and maintaining compliance with the National Environmental Quality Standards. Its efforts in promoting diversity, equity, and inclusion (DE&I) have been emphasized through strategic initiatives and a reinforced anti-harassment policy.
Looking ahead, the company anticipates a challenging operating environment for Independent Power Producers due to recent contractual changes. However, management remains optimistic about leveraging opportunities arising from disruptions in energy supply and continues to prioritize plant reliability and strategic investments. The company's involvement in the consortium for the privatization of Faisalabad Electric Supply Company further underscores its commitment to strategic growth and value creation for shareholders.