Sahas Urja Reports Record Profit as Lower Debt Costs and Higher Power Sales Drive Strong FY 2025/26 Performance

2nd August 2026, Kathmandu

Sahas Urja Limited has posted its strongest financial performance to date, reporting a record net profit of Rs 1.36 billion in the unaudited fourth-quarter financial results for fiscal year 2025/26.

Sahas Urja Reports Record Profit

The company earnings were supported by higher electricity sales, significantly lower finance costs, and stronger operational efficiency.

The hydropower developer, which operates the 86 MW Solu Khola Dudhkoshi Hydroelectric Project in Solukhumbu, recorded a 51.84 percent year-on-year increase in net profit, reaching Rs 1.36 billion compared to the previous fiscal year.

Revenue Growth Driven By Power Sales

Sahas Urja generated Rs 2.84 billion in revenue from electricity sales during the fiscal year, up from Rs 2.65 billion in the previous year, representing a 7.42 percent increase.

The company supplies electricity generated by its Solu Khola project to the Nepal Electricity Authority.

The steady growth in power sales reflects stable plant operations despite the dependence of the hydropower sector on hydrological conditions and grid availability.

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Sharp Decline In Finance Costs Boosts Bottom Line

One of the key highlights of the financial results was the substantial reduction in finance expenses:

• Interest Savings: Interest and finance costs declined from Rs 802.1 million in the previous fiscal year to Rs 577.5 million, resulting in total savings of approximately Rs 224.6 million.
• Bottom Line Impact: The lower debt servicing burden significantly improved net profitability, allowing overall profit growth to outpace top-line revenue growth.

Operational Indicators Show Strong Improvement

• Gross Profit: Increased to Rs 1.997 billion, up from Rs 1.850 billion in the prior fiscal year.
• Operating Profit: Rose to Rs 1.976 billion, compared to Rs 1.721 billion in the previous period.

Balance Sheet and Financial Position

Sahas Urja further strengthened its capital position during the review period:

• Paid-up Capital: Increased from Rs 3.78 billion to Rs 4.57 billion.
• Retained Earnings: Reserves and retained earnings rose from Rs 3.16 billion to Rs 3.68 billion.
• Loan Reduction: Medium and long-term loans declined from Rs 9.17 billion to Rs 8.86 billion.
• Total Assets: Overall assets stood at Rs 18.46 billion.

Per Share Metrics And Earnings Performance

• Earnings Per Share: The annualized Earnings Per Share increased from Rs 23.68 to Rs 29.72, signaling stronger shareholder returns.
• Net Worth Per Share: Declined slightly from Rs 184 to Rs 180.58, primarily due to the expanded paid-up capital base.
• Price-to-Earnings Ratio: Improved from 26.80 to 21.40.

Expansion Plans Through Budhigandaki A Project

Sahas Urja is preparing for a major operational expansion through its subsidiary Times Energy Pvt Ltd, which is developing the 341 MW Budhigandaki A Hydroelectric Project.

The company has indicated plans to raise capital through a rights share issue to support the large-scale project.

If successfully executed, the expansion will significantly increase the total generation capacity of Sahas Urja and solidify its position in the Nepalese energy sector.

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