• Nishat Chunian Power Limited (NCPL) announced its financial results for 1QFY26, with EPS at PKR 1.50 (-62% YoY). The 62% YoY decline is attributable to revised tariffs, according to a report by AHL Research.

Result Highlights

• In 1QFY26, revenue stood at PKR 1.4bn, down from PKR 2.1bn in the same period last year, primarily reflecting the impact of revised tariffs, lower penal income, and reduced ROE/ROEDC recognition.
• NCPL declared no dividend for 1QFY26, despite robust cash reserves of PKR 29/share (as of Sep’25) and clarity on renegotiated agreements.
• Other income clocked in at PKR 291mn (PKR 0.79/share) in 1QFY26, driven by surplus cash and short-term investments in PIBs and Sukuks, and is expected to remain a key earnings support.
• As part of the amended agreement, ROE will shift to a hybrid take-and-pay model (65% take-and-pay / 35% take-or-pay). Moreover, despite further reductions in O&M and working capital costs, NCPL 1) offers a strong net cash position, 2) is trading at a discount to its BVPS, and 3) offers a high dividend yield.

Other Information

• NCPL board has approved up to PKR 2bn equity and PKR 500mn WC loan each in NexGen Auto, which plans to launch two NEVs with Nishat Group and Chery International: Omoda E5 (EV SUV) and Jaecoo J7 PHEV.