Chirkhwa Hydropower Q2 Report Shows Rs 35.08M Profit
12th February 2026, Kathmandu
Chirkhwa Hydropower Limited has released its unaudited financial report for the second quarter (Q2) of the fiscal year 2082/83, highlighting a period of robust growth and operational success. Following the commercial power generation of the Upper Chirkhwa Khola Hydropower Project, the company has reported a net profit of Rs 35.08 million, marking a significant milestone in its financial journey.
Chirkhwa Hydropower Q2 Report
The Upper Chirkhwa Khola project, located in the Bhojpur district, has transitioned smoothly from construction to full-scale commercial operations, providing a stable revenue stream for the company.
Financial Performance Overview (Q2 2082/83)
The company’s profitability has seen a sharp increase compared to the previous year, primarily driven by consistent electricity sales to the Nepal Electricity Authority (NEA).
Revenue from Operations: During the six-month period ending Poush 2082, the company generated Rs 82.53 million in total revenue.
Net Profit Growth: The net profit of Rs 35.08 million represents a substantial leap from the Rs 11.71 million recorded in the same quarter last year.
Gross Profit Margin: With a cost of sales limited to Rs 8.26 million, the company maintained a strong gross profit of Rs 74.27 million, showcasing high operational efficiency.
Finance Costs: As is typical for new hydropower projects, finance costs remained a significant expenditure at Rs 23.78 million, representing interest payments on long-term project loans.
Earnings and Shareholder Metrics
The improved bottom line has directly impacted the company’s key financial ratios, making it a point of interest for investors in the Nepal Stock Exchange (NEPSE).
Earnings Per Share (EPS): The annualized EPS has improved to Rs 8.77, up from lower single digits in previous periods.
Net Worth Per Share: The current net worth per share stands at Rs 95.71. While slightly below the par value of Rs 100, the steady accumulation of retained earnings suggests a path toward exceeding par value in the coming quarters.
Price to Earnings (P/E) Ratio: Based on the current market price, the P/E ratio is calculated at 74.56, reflecting investor optimism regarding the project’s long-term cash flow.
Liquidity Position: The current ratio is reported at 0.50. While technically low, this is a common characteristic for hydropower firms that prioritize debt servicing of project loans during the initial years of operation.
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Project Details: Upper Chirkhwa Khola
The 4.7 MW Upper Chirkhwa Khola Hydropower Project is the primary asset driving these financial results.
Location: Shadanand Municipality, Bhojpur.
Operational Status: Commercial operation commenced on Jestha 20, 2081.
Energy Evacuation: The electricity generated is connected to the national grid via the NEA’s Dingla substation.
Capital Structure and Assets
Chirkhwa Hydropower maintains a solid capital base with a significant portion of its value tied to its infrastructure.
Paid-up Capital: Rs 400 million.
Total Assets: The company’s total assets exceed Rs 1.20 billion, with the vast majority (Rs 1.13 billion) being non-current assets such as property, plant, and equipment.
Total Liabilities: Rs 820.62 million, of which long-term loans account for Rs 690.46 million.
Market Performance
The stock has seen active participation from retail and institutional investors since its listing.
Last Traded Price: Rs 654.00 (per Q2 report data).
52-Week Range: Rs 550.00 – Rs 883.20.
Trading Volume: The company saw over 343,000 transactions during the quarter, indicating high liquidity in the secondary market.
Conclusion
The Chirkhwa Hydropower Q2 Report for 2082/83 confirms that the company has successfully moved past the risks of the construction phase. With a net profit of over Rs 35 million and a growing operational revenue of Rs 82.53 million, the company is demonstrating its ability to service its debt while creating value for shareholders. As the long-term project loans are gradually repaid, the net profit is expected to see further upward movement, positioning CKHL as a stable player in Nepal’s renewable energy sector.
For More: Chirkhwa Hydropower Q2 Report
