Kot Addu Power Company Limited’s KAPCO net profit climbed to Rs499.79 million in the first quarter of financial year 2026-27. Higher revenue, a return to gross profit and investment earnings supported the sharp recovery.
The result compares with just Rs4.88 million in the corresponding quarter last year, representing an increase of approximately 10,150%. The unusually low comparison base magnified the percentage increase in earnings.
Basic and diluted earnings per share reached Rs0.57 for the three months ended September 30, 2026, against Rs0.01 a year earlier. That represents a 5,600% increase using the reported rounded EPS figures.
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KAPCO disclosed its quarterly financial results through the Pakistan Stock Exchange on October 23.
Revenue rose 182% to Rs11.72 billion from Rs4.16 billion, reaching approximately 2.8 times the previous year’s level. Cost of sales increased 134% to Rs11.69 billion, compared with Rs4.99 billion.
Revenue growth outpaced the increase in generation costs, allowing KAPCO to reverse its earlier gross loss. The company posted gross profit of Rs38.79 million, compared with a loss of Rs831.40 million a year earlier.
Despite that turnaround, the gross margin remained thin at approximately 0.33%, based on the disclosed figures. Cost of sales still absorbed almost all quarterly revenue.
Administrative expenses fell 36% to Rs141.13 million from Rs221.47 million, providing further support to earnings. However, other operating expenses increased 32% to Rs28.86 million, against Rs21.84 million in the corresponding period.
Other income declined 29% to Rs922.45 million from Rs1.29 billion. KAPCO also recorded Rs397.42 million as its share of net profit from investments accounted for under the equity method. The comparative period carried no contribution under this heading.
These investment earnings helped support profitability as financing expenses rose sharply during the quarter. Finance costs reached Rs427.16 million, compared with Rs5.02 million a year earlier, an increase of approximately 8,409%.
Profit before levy and income tax nevertheless rose 261% to Rs761.52 million from Rs211.11 million. KAPCO then booked Rs146.56 million in minimum and final tax levies, against no comparable charge last year.
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After these levies, profit before income tax stood at Rs614.96 million, up 191% from Rs211.11 million.
The income tax charge fell 44% to Rs115.18 million from Rs206.24 million. This left quarterly net earnings at Rs499.79 million, reflecting improvements across revenue, gross profitability and investment contributions.
KAPCO owns and operates a multi-fuel power plant at Kot Addu in Punjab with a nameplate capacity of 1,600 megawatts. Its official business profile lists gas, furnace oil and diesel among the fuels the facility can use.
The plant combines gas and steam turbines, using exhaust heat to produce additional electricity. KAPCO identifies the Central Power Purchasing Agency (Guarantee) Limited as its electricity purchaser.
