Panchthar Power Company Performance Analysis and Financial Results of Q2 2082/83
30th January 2026, Kathmandu
Panchthar Power Company Limited PPCL has reported its unaudited financial results for the second quarter of the fiscal year 2082/83 showing a remarkable transition from loss to profitability. For the quarter ending in Poush 2082 the company achieved a net profit of 90.49 million rupees.
Panchthar Power Company Performance
This brings the cumulative net profit for the first half of the fiscal year to 147.62 million rupees a sharp reversal from the 77.63 million rupee loss recorded in the same period of the previous year. This recovery is primarily attributed to the resumption of regular power generation after overcoming significant damages caused by floods in the previous years.
Operational Revenue and Energy Production
The core revenue from operations for the first six months of 2082 2083 reached 388.92 million rupees. During the second quarter alone the company generated 239.58 million rupees from electricity sales reflecting the high production capacity maintained during the post monsoon months. This is a massive improvement over the corresponding half year in the previous fiscal year where the company had only managed to generate nominal revenue due to project downtime.
Direct expenses related to power production for the half year were recorded at 21.99 million rupees. Consequently the gross profit for the period stood at 366.93 million rupees providing a healthy margin to cover financial and administrative obligations.
Operating Costs and Financial Management
Panchthar Power Company has maintained tight control over its operating and administrative costs. Cumulative staff costs for the first six months were 7.28 million rupees while other operating expenses totaled 6.22 million rupees. Depreciation for the period was recorded at 97.35 million rupees reflecting the heavy capital investment in the project assets.
Financial costs which primarily consist of interest on loans for the Hewa Khola A Hydroelectric Project reached 110.46 million rupees for the half year. Despite these high interest obligations the company reported an operating profit of 258.42 million rupees for the cumulative period. The net profit before tax for the second quarter was 90.49 million rupees and since there was no immediate tax expense the same amount was carried over as net profit.
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Balance Sheet Strength and Equity
The total assets of Panchthar Power Company were valued at 2.91 billion rupees as of the end of Poush 2082. Non current assets which include property plant and equipment accounted for 2.83 billion rupees of this total. The current assets including cash and bank balances stood at 87.89 million rupees showing improved liquidity from the start of the fiscal year.
The capital structure remains dominated by long term debt. Secured loans reached 1.70 billion rupees as of Poush 2082 as the bank continues to service its project financing. On the equity side the paid up capital is 962.50 million rupees. While the company still carries a cumulative reserve deficit of 17.66 million rupees the rapid profit accumulation in the last two quarters suggests that the company will likely move into a positive reserve position by the end of the fiscal year.
Shareholder Value and Strategic Recapitalization
For the investors the recent financial turnaround has led to a significant improvement in key ratios. The annualized earnings per share EPS for the first half of the year reached 30.68 rupees a massive jump from the negative figures reported last year. The net worth per share has improved to 99.20 rupees nearly reaching its par value of 100 rupees.
A major strategic development for the company is the plan to issue right shares in a 1 to 1 ratio. The company has already submitted an application to the Securities Board of Nepal SEBON on Mangsir 17 2082 to issue 9,625,000 units of right shares. The proceeds from this 962.50 million rupee capital raise are intended to be used to pay down the expensive bank loans taken for the repair of the Hewa Khola A project. This move is expected to significantly reduce future interest expenses and further boost the net profit margin.
Conclusion and Future Outlook
In conclusion the Panchthar Power Company financial results for the second quarter of 2082 2083 confirm that the project is back to its full operational potential. The dramatic recovery in net profit and the strong annualized EPS are positive signals for the market. While external challenges such as flood risks and fluctuating river water levels remain the company’s focus on debt reduction through right shares and its successful restoration of energy production place it on a much more stable financial footing. Shareholders should monitor the SEBON approval status for the right share issuance as it will be a key driver of the company’s valuation in the coming months.
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