Mountain Energy Net Profit Up by 38.67 Percent, Earns 613.5 Million Rupees From Power Sales
16th November 2025, Kathmandu
Mountain Energy Nepal Limited has delivered a strong start to the fiscal year 2025/26, announcing an unaudited first-quarter financial report that reveals a 38.67 percent increase in net profit.
Mountain Energy Profit Increases
This robust performance underscores the company’s efficient operation of its hydropower projects and its increasing capacity to generate significant shareholder value within Nepal’s growing energy sector.
The company’s net profit for the first quarter reached 423.49 million rupees, a substantial leap from the 305.39 million rupees recorded in the same quarter of the previous fiscal year. This impressive growth rate is primarily fueled by accelerated revenue from the sale of electricity, the company’s core business.
Record Revenue from Power Sales
The cornerstone of Mountain Energy’s strong financial result is the sharp rise in revenue generated from its operating hydropower projects. The company earned 613.55 million rupees from electricity sales during the review period. This represents a significant 23.70 percent jump compared to the 496.02 million rupees in sales revenue achieved in the first quarter of the previous fiscal year.
This revenue expansion is directly attributable to the reliable performance of the company’s two key projects: the 42 MW Mistri Khola Hydropower Project and the 5 MW Tadi Khola Hydropower Project. The consistent generation and dispatch of power from these combined 47 MW facilities, particularly during the high-flow season that often characterizes the first quarter, have been instrumental in driving the top line. The company also registered an additional financial boost of 900 thousand rupees received in insurance claims, further contributing to the overall income.
The success in revenue generation translated directly into operational efficiency, with Operating Profit rising from 376.5 million rupees to a robust 471.6 million rupees. Consequently, the Profit Before Tax was recorded at a solid 434.7 million rupees, setting a positive financial precedent for the remainder of the fiscal year.
Capital Structure and Shareholder Returns
Mountain Energy Nepal Limited has been actively enhancing its capital structure through the distribution of bonus shares, which reflects its commitment to rewarding shareholders.
Advertisement
The company’s paid-up capital for the current quarter stands at 2.6027 billion rupees. This is up from the 2.2632 billion rupees in the corresponding period of the previous fiscal year. The increase is a direct result of the 15 percent bonus share distributed by the company from the earnings of the fiscal year 2080/81. Furthermore, the company’s ability to retain profits is evident in its healthy retained earnings, which reached 1.76 billion rupees.
Looking ahead, the company’s board recently signaled confidence in its future performance by proposing a significant dividend for the last fiscal year, 2081/82. The proposed dividend package includes a 20 percent bonus share and a 1.0526 percent cash dividend for tax purposes. This proposed distribution, which is pending approval from the relevant regulatory bodies and the company’s upcoming Annual General Meeting, signifies the continuous cycle of utilizing profits to both strengthen the capital base and provide returns to investors.
Key Financial Indicators and Market Position
The impressive increase in net profit has positively impacted the company’s per-share metrics, which are crucial for stock market investors.
The annualized (non-annualized) earnings per share (EPS) saw a healthy climb from 13.49 rupees in the previous period to 16.27 rupees in the current first quarter. The rise in EPS indicates that the company is generating higher profits per outstanding share, making it more attractive to investors.
Similarly, the company’s financial stability is underlined by its net worth per share, which stands at 167.78 rupees. This figure represents the company’s underlying value, demonstrating a strong foundation of assets relative to its share count.
Mountain Energy Nepal Limited’s first-quarter performance positions it strongly within the hydropower sub-sector, characterized by increasing power generation and robust revenue collection. The significant profit growth and consistent dividend proposals reinforce its image as a financially sound and investor-friendly hydropower producer in Nepal. The successful operation of its current projects, combined with a focus on capital structure enhancement, suggests a trajectory of sustained profitability in the coming years.
For More: Mountain Energy Profit Increases
