Panchakanya Mai net profit posted of Rs 83.95 million in Q2 of FY 2082/83
6th February 2026, Kathmandu
Panchakanya Mai Hydropower Limited (PMHPL) has delivered a robust financial performance for the second quarter of the fiscal year 2082/83, reflecting a period of significant growth and operational recovery. According to the unaudited financial statements released as of Poush end 2082, the company reported a net profit of Rs 83.95 million, marking a dramatic increase of 195.74 percent compared to the Rs 28.38 million earned during the same quarter of the previous fiscal year.
Panchakanya Mai net profit
This surge in profitability is primarily attributed to enhanced revenue from electricity sales and a strategic reduction in interest expenses. Total operating income for the quarter reached Rs 229.58 million, up from Rs 189.92 million in the previous year. The company’s two operational projects in the Ilam district—the 12 MW Upper Mai Hydropower Project (UMHEP) and the 6.1 MW Upper Mai C Hydropower Project (UMCHEP)—contributed Rs 141.41 million and Rs 88.16 million respectively to this total.
Financial Indicators and Market Performance
The improvement in the bottom line has positively impacted several key financial ratios. The annualized earnings per share (EPS) for the company now stands at Rs 15.26, a substantial leap from the figures reported in 2081/82. Despite this earnings growth, the company’s net worth per share remains at Rs 84.95, and it continues to carry a negative reserve and surplus of Rs 165.52 million, largely due to accumulated losses from previous years and the impact of past natural disasters on operations.
In the secondary market, PMHPL shares remained highly active during the second quarter. The stock traded at a maximum price of Rs 356 and a minimum of Rs 311.6, eventually closing the quarter at Rs 318.8. The total traded volume reached nearly 2.1 million shares, resulting in a turnover of approximately Rs 69.35 crore over 55 transaction days. This trading volume suggests high investor interest and liquidity for the company’s equity on the Nepal Stock Exchange (NEPSE).
Operational Context and Risk Management
The operational success of PMHPL is grounded in its two run-of-river projects. The Upper Mai project utilizes the flow of the Mai Khola with a design head of 363.7 meters to generate electricity, which is then evacuated via an 18.5 km transmission line to the Godak Substation. The Upper Mai C project functions as a cascade, utilizing the tailrace discharge from the upstream plant along with additional stream flows to generate an additional 6.1 MW.
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However, the company remains vigilant regarding several internal and external risks. Management has identified the retention of skilled technical manpower and the maintenance of operational efficiency as primary internal challenges. Externally, the hydropower sector in Nepal is highly susceptible to hydrological risks. The company noted that fluctuations in water flow during the dry season significantly impact energy generation, while the monsoon season brings the threat of floods and landslides. Past events, such as the flooding in late 2024, have previously damaged headworks and necessitated periods of shutdown for repairs, emphasizing the importance of robust insurance and contingency planning.
Corporate Governance and Future Outlook
Panchakanya Mai Hydropower has emphasized its commitment to high standards of corporate governance. The Board of Directors and the Audit Committee have been active in monitoring financial disclosures and ensuring compliance with the Securities Registration and Issuance Regulation. The company reported no ongoing legal cases, which contributes to its institutional stability.
While the current profit is a milestone, the company’s focus remains on navigating the dry season (mid-December to mid-April) when river flows are at their lowest. Managing bank installments during this period is a key financial priority. As interest rates in the Nepalese banking sector have shown a downward trend, the company has benefited from a 25.27 percent decrease in interest expenses, which has been a major tailwind for the current fiscal year’s profitability.
Looking forward, the successful recovery from negative earnings and the significant jump in net profit suggest that PMHPL is moving toward a more sustainable financial footing. Investors will be closely watching if this trend continues into the third and fourth quarters, particularly how the company manages the dry season production levels.
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