Terhathum Power Company Limited Reports Strong Financial Improvement with Net Profit Up Nearly Fourfold in Fiscal Year 2082/83

10th August 2026, Kathmandu

Terhathum Power Company Limited has officially released its financial statements for the fourth quarter of fiscal year 2082/83, demonstrating a substantial turnaround in its overall financial performance.

Terhathum Power Financial Improvement 

The hydropower producer recorded a near fourfold increase in its net profit compared to the previous fiscal year, reflecting stronger revenue streams, reduced debt burdens, and improved operational efficiency.

According to the fourth quarter financial report, Terhathum Power Company Limited posted a net profit of 8.93 crore Nepali Rupees for fiscal year 2082/83. This represents a remarkable surge of 288.40 percent compared to the net profit of 2.30 crore Nepali Rupees recorded in fiscal year 2081/82. The sharp rise in earnings highlights the successful execution of capital restructuring strategies and improved energy generation capabilities throughout the twelve month reporting period.

Growth in Electricity Sales Drives Revenue Expansion

The primary catalyst behind the impressive profit growth of Terhathum Power Company Limited was a steady rise in revenue generated from electricity sales. During fiscal year 2082/83, the company earned 18.26 crore Nepali Rupees from power generation and sales to the national grid. In comparison, the revenue from electricity sales stood at 15.49 crore Nepali Rupees in the preceding fiscal year 2081/82.

The sustained increase in electricity generation and timely grid connections allowed the company to maximize its top-line revenue. Higher operational earnings provided necessary liquidity, enabling the hydro developer to strengthen its financial standing and improve bottom-line profitability.

Reserve Fund Turns Positive Following Capital Restructuring

In addition to significant profit expansion, Terhathum Power Company Limited achieved a major structural milestone by turning its reserve fund positive. In fiscal year 2081/82, the company suffered from a heavily negative reserve position exceeding 15.41 crore Nepali Rupees, primarily due to accumulated operational costs and high interest expenses during initial project phases.

By the end of fiscal year 2082/83, the reserve fund underwent a complete turnaround, reaching a positive balance of 2.91 crore Nepali Rupees. This positive reserve transition was largely driven by a combination of accumulated annual net profits and capital inflows from the successful execution of a 100 percent rights share issuance. The positive reserve balance significantly enhanced the overall balance sheet health of the hydro producer.

Paid Up Capital Doubles and Debt Burdens Decline Sharply

To optimize its capital structure and reduce high interest expenses, Terhathum Power Company Limited issued a 100 percent rights share offering to its existing shareholders. Following the complete subscription and listing of the rights shares, the paid up capital of the company doubled from 40 crore Nepali Rupees to 80 crore Nepali Rupees.

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A substantial portion of the funds raised through the rights issue was directly utilized to pay off long term bank borrowings. As a result, the long term debt burden of the company declined sharply from 88.28 crore Nepali Rupees in fiscal year 2081/82 to 29.29 crore Nepali Rupees in fiscal year 2082/83. Reducing debt by nearly 59 crore Nepali Rupees substantially lowered annual interest expenses, further protecting profit margins and bolstering future financial resilience.

Significant Improvement in Per Share Financial Metrics

The combined impact of debt reduction, profit expansion, and capital expansion led to a major improvement in key per share metrics for equity investors:

Earnings Per Share: The earnings per share of Terhathum Power Company Limited nearly doubled during the fiscal year, rising from 5.75 Nepali Rupees in fiscal year 2081/82 to 11.17 Nepali Rupees in fiscal year 2082/83.

Net Worth Per Share: Backed by the positive reserve fund and higher paid up capital, the net worth per share of the company witnessed a major jump, expanding from 61.47 Nepali Rupees to 103.64 Nepali Rupees by the fourth quarter.

Summary of Key Financial Parameters

For a quick narrative overview of the financial results recorded by Terhathum Power Company Limited in fiscal year 2082/83:

• Company Name: Terhathum Power Company Limited
• Reporting Period: Fiscal Year 2082/83 Fourth Quarter
• Net Profit: 8.93 crore Nepali Rupees
• Net Profit Growth: 288.40 percent
• Electricity Sales Revenue: 18.26 crore Nepali Rupees
• Previous Electricity Sales Revenue: 15.49 crore Nepali Rupees
• Reserve Fund Balance: Positive 2.91 crore Nepali Rupees
• Previous Reserve Fund Balance: Negative 15.41 crore Nepali Rupees
• Paid Up Capital: 80 crore Nepali Rupees
• Previous Paid Up Capital: 40 crore Nepali Rupees
• Long Term Debt Balance: 29.29 crore Nepali Rupees
• Previous Long Term Debt Balance: 88.28 crore Nepali Rupees
• Earnings Per Share: 11.17 Nepali Rupees
• Previous Earnings Per Share: 5.75 Nepali Rupees
• Net Worth Per Share: 103.64 Nepali Rupees
• Previous Net Worth Per Share: 61.47 Nepali Rupees

Current Operational Projects and Future Hydropower Expansion

Terhathum Power Company Limited currently operates the 7.5 Megawatt Upper Khorunga Khola Small Hydropower Project located in Terhathum district. The plant has been generating clean energy and contributing consistently to the national grid.

To ensure long term growth and value creation for shareholders, the company has initiated development procedures for a new project named Khorunga Tangmaya-2 Hydropower Project. Expanding its power generation portfolio will allow the company to increase total energy output and build a diversified revenue base.

Financial Summary and Long Term Outlook

The financial results of Terhathum Power Company Limited for fiscal year 2082/83 reflect a solid operational and financial turnaround. Through debt reduction, revenue growth from electricity sales, capital expansion, and a positive reserve balance, the company has significantly strengthened its balance sheet. Going forward, the success of the hydro producer will depend on smooth plant operation and timely execution of its upcoming expansion projects.

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