Mountain Energy Nepal Profit Growth Update
9th February 2026, Kathmandu
Mountain Energy Nepal Limited (MEN) has reported a healthy rise in its financial performance for the second quarter of the fiscal year 2082/83. According to the unaudited financial statement for the period ending Poush 2082, the company’s net profit grew by 5.74 percent, reaching 54.14 crore, up from 51.20 crore in the same period last year.
Mountain Energy Nepal Profit
The growth was primarily fueled by a 14.58 percent surge in electricity sales revenue, which climbed to 91.44 crore as the company’s core hydropower assets maintained steady generation levels.
Power Generation and Revenue Drivers
Mountain Energy’s revenue stability is anchored by its two operational projects in the Myagdi and Nuwakot districts. These projects have recovered well following a temporary shutdown in mid-2024 due to monsoon flooding at the Mistri Khola site.
42 MW Mistri Khola Hydropower Project: This run-of-the-river project is the company’s primary revenue generator. After being removed from the NEA’s contingency plan, its generation efficiency improved significantly during the recent wet months.
5 MW Tadi Khola Hydropower Project: Continues to provide a consistent baseline of power sales.
Financial Efficiency and Interest Reduction
A significant factor contributing to the bottom-line growth was the company’s ability to lower its financing costs. As the project loans are gradually paid down, interest expenses saw a notable decline. In the current second quarter, interest expenses fell to 11.15 crore, compared to 12.40 crore in the same period last year.
Operating profit reached 64.96 crore, reflecting strong operational margins. The reduction in debt servicing costs, combined with a small insurance claim receipt of 9 lakh, helped offset rising operational costs and depreciation associated with the aging of the Tadi Khola plant.
Shareholder Metrics and Capital Structure
Mountain Energy recently underwent a capital expansion following its 11th Annual General Meeting, where it endorsed a 20 percent bonus share distribution for the fiscal year 2081/82.
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Paid-up Capital: Increased to 3.12 billion from 2.60 billion.
Earnings Per Share (EPS): Stands at 17.34. While the EPS appears lower than the previous year’s unadjusted figures, it remains competitive given the 20 percent increase in the total number of shares.
Net Worth Per Share: 142.68.
Reserves and Surplus: 1.33 billion.
Market Performance and Outlook
As of February 2026, the company is trading on the Nepal Stock Exchange with a price-to-earnings ratio of approximately 25.92 times. Electricity sales for the quarter reached 91.44 crore, with a net profit of 54.14 crore.
The current financial trajectory indicates a period of post-expansion stability. By maintaining double-digit growth in electricity sales and successfully lowering interest expenses, the company has proven its resilience. The main challenge moving forward will be managing the hydrology risks of the Mistri Khola project during the upcoming dry winter months, where generation typically dips due to lower river flow.
Conclusion
Mountain Energy Nepal profit growth reflects steady improvement driven by rising electricity sales and effective cost control. The 14.58 percent increase in power sales revenue, combined with the 5.74 percent rise in net profit, highlights the company’s strong operational performance. With consistent hydropower generation and stable earnings per share of 17.34, the company remains a solid player in the energy sector.
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