Nishat Power Limited (PSX: NPL) was incorporated in Pakistan as a public limited company in 2007. The company owns, operates and maintains a fuel fired power station having gross capacity of 200MW in Jamber Kalan, Tehsil Pattoki, District Kasur, Punjab, Pakistan. The company is a subsidiary of Nishat Mills Limited.
Pattern of Shareholding
As of June 30, 2026, NPL has a total of 354.089 million shares outstanding which are held by 23,416 shareholders. Nishat Mills Limited, the parent company of NPL, holds 51.0135 percent of its shares followed by local general public holding 34.70 percent shares. Modarabas & Mutual Funds have 5.63 percent stake in the company while Banks, DFIs and NBFIs account for 3.79 percent shares. Around 1.91 percent of the company’s shares are held by joint stock companies and 1.83 percent by insurance companies. The remaining share is held by other categories of shareholders.
Financial Performance (2021-26)
Over the period under consideration, NPL’s topline posted year-on-year growth only in 2022 and 2026. Its bottomline was able to muster significant growth in all the years under consideration except 2021 and 2025 with net loss recorded in the latter year. The company’s margins registered decline in 2021 and 2022 followed by an uptick in 2023 and 2024. In 2025, gross and operating margins significantly grew, however, net margin slid to the negative zone. In 2026, gross and operating margins drastically fell; however, net margin progressed to the positive zone. The detailed performance review of the period under consideration is given below.
In 2021, NPL’s net revenue nosedived by 2.61 percent year-on-year to clock in at Rs.11,432.57 million. While capacity utilization greatly increased to 30.59 percent during the year, reduced CPP revenue due to the repayment of long-term debt in the previous year resulted in a plunge in NPL’s topline in 2020. The company dispatched 523 GWh of electricity to NTDC in 2021. Cost of sales escalated by 48.48 percent in 2021 due to elevated price of raw materials consumed during the year particularly fuel. This resulted in 46 percent weaker gross profit recorded by NPL in 2021 with GP margin drastically falling down to 30 percent from 54 percent in the previous year. Administrative expense plummeted by 10.22 percent in 2021 primarily due to lower payroll expense and legal & professional charges. The company further trimmed down its workforce to 205 employees in 2021. 2928.42 percent higher other expense incurred by NPL in 2021 indicated capacity receivables of Rs.162.717 million written off during the year. This was due to the under utilization of plant capacity on account of non-availability of fuel owing to non-payment by NTDC. The company raised this issue in London Court of International Arbitration (LCIA); however, it had to forgo certain amount and hence wrote it off during the year. Other income built up by 676.74 percent in 2021 due to massive gain recognized on the disposal of operating fixed assets during the year. The company recorded 49.77 percent lower operating profit in 2021 with considerably lower OP margin of 26.42 percent versus 51.23 percent in the previous year. Finance cost dipped by 70.31 percent in 2021 due to monetary easing and reduced borrowings. Gearing ratio also fell to 13 percent in 2021 from 20 percent in 2020. Higher fuel charges, elevated other expense and reduced CPP revenue led to 44.95 percent decline in NPL’s net profit in 2021 which stood at Rs.2681.13 million with EPS of Rs.7.57 and NP margin of 23.45 percent. This was against the EPS of Rs.13.755 and NP margin of 41.49 percent registered in 2020.
As against previous year, NPL’s topline grew by a staggering 107.17 percent to clock in at Rs.23,684.34 million in 2022. This was on account of increased capacity utilization of 46.42 percent recorded in 2022 which translated into dispatch of 794 GWh of electricity to NTDC. Cost of sales surged by 147.5 percent in 2022 due to increased raw material prices coupled with currency depreciation. Gross profit inched up by 13 percent in 2022, however, GP margin fell down to 16.36 percent – the lowest among all the years under consideration. 10.62 percent year-on-year hike in administrative expense in 2022 was primarily the effect of elevated payroll expense. Other expense shrank by 55 percent in 2022 as the company wrote off capacity receivables during the last year. Other expense was conveniently offset by 61.3 percent higher other income recorded by NPL in 2022. Improved other income was the result of higher profit on bank deposits, increased scrap sales and gain on disposal of operating fixed assets. NPL’s operating profit inched up by 17.83 percent in 2022; however, OP margin fell to 15 percent. Despite soaring discount rate, NPL was able to cut down its finance cost by 30.48 percent in 2022. Gearing ratio was recorded at 14 percent in 2022. Net profit grew by 23.93 percent year-on-year to clock in at Rs.3322.606 million in 2022 with EPS of Rs.9.38 and NP margin of 14 percent.
The upward journey of NPL’s topline reversed yet again as it posted year-on-year fall of 2.6 percent in its net sales which clocked in at Rs.23,068.96 million in 2023. The slowdown of economic activity resulted in reduced power generation demand in the country. Hence, NPL operated at a reduced capacity of 31.44 percent and transmitted 538 GWh of electricity to NTDC in 2023. Cost of sales plunged by 6.63 percent in 2023, resulting in 18 percent higher gross profit with GP margin moving up to 19.82 percent. Administrative expense surged by 20 percent in 2023 due to higher salaries as well as travelling & conveyance charges incurred during the year. The company enhanced its workforce from 207 employees in 2022 to 214 employees in 2023. Other expense magnified by a whopping 122.41 percent in 2023 on account of massive exchange loss, loss on disposal of short-term investments and trade debts written off during the year. Other expense was set off by 95.57 percent higher other income recorded by NPL in 2023 due to improved profit on bank deposits and TDRs, increased scrap sales and insurance claims. Operating profit grew by 17.67 percent in 2023 with OP margin inching up to 18.15 percent. Finance cost dipped by 62.50 percent in 2023 as the company paid off its entire short-term and long-term liabilities during the year which drove its gearing ratio down to 0 percent. While the core income of the company is exempt from income tax levy, higher other income translated into income tax of Rs.8.06 million in 2023, up 2037.67 percent year-on-year. NPL’s net profit grew by 23.13 percent in 2023 to clock in at Rs.4091.029 million with EPS of Rs.11.56 and NP margin of 17.73 percent.
NPL’s revenue continued to fall with a decline of 2.44 percent recorded in 2024. Net sales clocked in at Rs.22,505.489 million in 2024. Due to reduced power generation demand, the company operated at a capacity of 26.45 percent and dispatched 454 GWh of electricity to the national grid in 2024. Cost of sales dipped by 6.11 percent during the year due to higher fuel and O&M savings. This translated into 12.40 percent improvement in gross profit and GP margin clocking in 22.84 percent in 2024. 20.15 percent higher administrative expense incurred in 2024 was the impact of higher payroll as well as travelling & conveyance charges incurred during the year. NPL incurred higher payroll expense despite the fact that it streamlined its workforce from 214 employees in 2023 to 210 employees in 2024. Other expense shrank by 94.43 percent in 2024 as Pak Rupee strengthened against the greenback during the year, resulting in no exchange loss. Moreover, unlike last year, NPL didn’t incur any loss on disposal of short-term investments and didn’t write off any trade debts in 2024. Other income strengthened by 504.54 percent in 2024 owing to dividend income recognized from the mutual funds of MCB Investment Management Limited, gain recorded on the disposal of government T-bills and PIBs as well as higher profit on bank deposits and TDRs. NPL recorded 36.78 percent higher operating profit in 2024 with OP margin moving up to 25.45 percent. Finance cost marched down by 61.96 percent in 2024 due to lesser interest payment due on outstanding loans. Due to improvement in other income, tax expense grew by 3677.13 percent in 2024. NPL was able to record 31.74 percent higher net profit to the tune of Rs.5389.574 million in 2024 with EPS of Rs.15.22 and NP margin of 23.95 percent.
Although the company’s topline dipped in the previous years, it was able to muster robust net profit. However, in 2025, not only did NPL’s net sales drastically dropped by 68.64 percent to clock in at Rs.7057.71 million, the company recorded a sizeable net loss. During the year, the government of Pakistan constituted a task force to make amendments in the power purchase agreement, implementation agreement and tariff. NPL, along with other IPPs underwent several rounds of negotiations with the task force and the result was the conversion of existing tariff to “Hybrid Take & Pay Model”. During the 3QFY25, this model was fully implemented by all the parties. As per the amendment agreement, the power purchaser also made full payment of overdue claims of the company. However, due to adjustment in receivables from the power purchaser as per the amendment agreement, the company had to incur net loss during the year. NPL operated its plant at 5.07 percent capacity and dispatched only 86,664 WH of electricity in 2025 versus capacity utilization of 26.45 percent registered in 2025. This was due to due to aforementioned negotiations with Power Purchaser/GoP during the year. Gross profit slid by 48.29 percent in. 2025; however GP margin improved to 37.66 percent. Administrative expense mounted by 12.70 percent in 2025 due to inflationary impact which pushed up the payroll expense despite workforce rationalization from 210 employees in 2024 to 186 employees in 2025. Other income strengthened by 36.35 percent in 2025 mainly on the back of gain recognized on disposal of investment in mutual funds of MCB Investment Management Limited, a related party of NPL. Other expense surged by 643.77 percent in 2025 on the back of WWF and WPPF written off during the year. However, other expense was conveniently offset by other income in 2025. Operating profit dwindled by 38.58 percent in 2025, however OP margin jumped up to 49.85 percent. Finance cost escalated by 29 percent in 2025 despite monetary easing. What turned the tables for NPL in 2025 was the adjustment made to balance payable by CPPA-G. This was on account of the company’s consent under the amendment agreement to waive off delayed payment mark-up invoices and delayed payment mark-up accrued with respect to the payments made by the power purchaser up to October 31, 2024. Under the agreement, NPL also agreed to share prior years’ earnings relating to fuel and O&M up to June 30, 2023 with the power purchaser. As a result, the company recorded net loss of 746.782 million in 2025. This translated into loss per share of Rs.2.11 in 2025. Excluding the one-off adjustment made to balance payable by CPPA-G, the company’s EPS would have stood at Rs.8.77.
In 2026, NPL’s net sales improved by 56.11 percent to clock in at Rs.11,017.70 million. This was on account of 122.89 percent improvement in the company’s production which clocked in at 193,166 MWH in 2026. This resulted in annual capacity utilization of 11.29 percent in 2026. The increase in capacity utilization was due to disruptions in the global energy supply chain which severely impeded the RLNG supplies to Pakistan. This resulted in operational bottlenecks in many RLNG based power plants with RFO based plants serving as a buffer in supporting the national grid. During the year, NPL continued to operate under the Hybrid Take-and-Pay model. Cost of sales surged by a massive 119.10 percent in 2026 due to greater fuel prices. This pushed down gross profit by 48.15 percent in 2026 with GP margin falling down to 12.51 percent. The decline in gross profit and margin was also due to lower Delayed Payment mark-up introduced under the PPA Amendment Agreement. Administrative expense escalated by 17.21 percent in 2026 due to higher payroll expense as well as legal & professional charges incurred during the year. Number of employees was increased to 230 in 2026. Other expense spiked by 473.19 percent in 2026 due to loss incurred on the initial recognition of investment at FVTOCI. Other income dipped by 1.36 percent in 2026 due to thinner profit on bank deposits and TDRs as lesser surplus funds were available after NPL made substantial investments in RMPL and NexGen during the year. Operating profit dipped by 48.68 percent in 2026 with OP margin falling down to 16.39 percent. Finance cost escalated by 61.30 percent in 2026 due to substantial increase in short-term borrowings during the year. Share of profit worth Rs.1303.49 million recognized from NexGen greatly buttressed NPL’s financial performance in 2026. The company posted net profit of Rs.2482.575 million in 2026 as against net loss registered in the previous year. This translated into EPS of Rs.7.01 and NP margin of 22.53 percent in 2026.
Recent Performance (1QFY27)
During the first quarter of the ongoing fiscal year, NPL registered a staggering 393.16 percent year-on-year increase in its net sales which clocked in at Rs.8246.113 million. This came on the back of greater capacity utilization due to increased reliance on the RFO plants on the back of geopolitical tensions which impeded the supply of RLNG. Higher cost of fuel resulted in 503.24 percent escalation in cost of sales in 1QFY27. Gross profit grew by 32 percent in 1QFY27, however, GP margin dipped to 6.25 percent from 23.36 percent in 1QFY26. Higher payroll expense resulted in 21.46 percent escalation in administrative expense in 1QFY27. Other income deteriorated by 73.98 percent during the period under review likely due to lesser return on short-term investments as the company deployed its surplus funds in long-term investment in RMPL and NexGen. NPL recorded 33.29 percent thinner operating profit in 1QFY27 with OP margin clocking in at 5.64 percent versus 41.70 percent recorded in 1QFY26. Finance cost spiked by 737.61 percent in 1QFY27 due to greater short-term borrowings and the onset of monetary tightening. The increase in short-term borrowings was due to surge in the company’s receivables from the Power Purchaser from Rs.6541 million in June 2026 to Rs. 9607 million in September 2026 on account of circular debt pressure. Net profit dwindled by 7.35 percent to clock in at Rs.541.376 million in 1QFY27. This translated into EPS of Rs.1.53 and NP margin of 6.57 percent in 1QFY27 versus EPS of Rs.1.65 and NP margin of 34.94 percent registered in 1QFY26.
Future Outlook
NPL’s capacity utilization is likely to rise during the ongoing fiscal year due to ongoing conflict in the Middle East which resulting in restricted supply of RLNG for gas-based power plants. However, structural challenges such as lower capacity payments under the revised Power Purchase Agreement, surging circular debt, increasing reliance on external borrowings and rising fuel cost may suppress the company’s profitability and margins. The company is diversifying its sources of income by making long-term investments. NPL is also participating in a consortium led by Pakgen Limited for the proposed privatization of Faisalabad Electric Supply Company (FESCO).
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