Peoples Power Limited Publishes First Quarter Report with Strong Financial Improvement
18th November 2025, Kathmandu
Peoples Power Limited has released its first quarter financial report for the fiscal year 2025/26, showcasing a significant and robust improvement across its financial indicators.
Peoples Power Limited Q1 Report
The report details a strong trajectory toward a more stable and sustainable business model, driven primarily by efficient cost management and growing operational stability. Key performance metrics—including revenue, profit, asset valuation, and balance sheet health—all point towards a major financial turnaround for the hydropower company.
Profit Surges on Reduced Finance Costs
The most striking highlight of the quarterly report is the sharp increase in net profit.
Net Profit: Peoples Power recorded a profit of 12.605 million rupees in the first quarter, a massive improvement compared to the mere 1.151 million rupees recorded in the previous quarter.
Driver of Profitability: This surge in profitability is directly attributed to a substantial reduction in financial expenses. Finance costs plummeted from 26.252 million rupees in the corresponding quarter of the previous fiscal year to just 2.897 million rupees this quarter. This radical decline strongly suggests successful debt management strategies, including possible loan restructuring or significant prepayment of long-term loans using past capital raised, leading to a much lower interest burden.
Cost Control: Complementing the reduced finance costs, administrative expenses have also remained controlled, providing further support to the company’s bottom line and enhancing overall financial discipline.
Stable Revenue and Strong Operational Consistency
Despite the first quarter of the fiscal year coinciding with the tail end of the wet season and the beginning of the dry season, the company demonstrated solid operational stability:
Revenue Performance: The company generated revenue of 31.75 million rupees, marking a slight yet important increase over the 30.14 million rupees recorded in the same period last year.
Seasonal Management: Although the previous quarter’s revenue was significantly higher (96.32 million rupees) due to peak monsoon water flow, the ability to generate a stable income of over 31 million rupees during a period of reduced water flow indicates consistent electricity production and steady sales to the Nepal Electricity Authority (NEA).
Trade Receivables: The reported trade receivables reached 20.839 million rupees, which confirms a regular and healthy inflow of income from electricity sales.
Balance Sheet Strength and Liquidity
The company’s balance sheet reflects exceptional growth in asset quality and liquidity, strengthening its financial position:
Asset Growth: Total assets reached 1.009 billion rupees, showing an increase of nearly 88 million rupees from the previous quarter.
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Cash and Liquidity: The most notable change is the dramatic surge in the cash and bank balance, which exploded from 3.495 million rupees to 98.368 million rupees. This remarkable rise in cash reserves strongly indicates timely receipt of electricity sales revenue and reduced pressure from operating expenses and debt servicing.
Equity Base: The company’s total equity base expanded significantly to 1.007 billion rupees, primarily driven by an increase in share capital (from 632 million rupees to 948.9 million rupees) and the addition of 65.476 million rupees in share premium, likely a result of the recent right share issuance. Furthermore, the negative reserve has narrowed considerably from minus 19 million rupees to a much healthier minus 5.563 million rupees, reflecting the benefits of improved profitability.
Liabilities Reduction: Current liabilities saw a sharp decline from 26.069 million rupees to just 2.129 million rupees. Crucially, the current portion of long-term borrowings has been reduced to zero, meaning the company has no immediate debt repayment obligations, enhancing its liquidity and de-risking its short-term financial outlook.
Market Activity and Key Ratios
Investor interest in Peoples Power remains high, reflected in active trading and positive financial ratios:
Market Performance: The stock market performance during the quarter showed high activity across 51 trading days, with a total turnover of 551 million rupees from 1,613,254 traded shares. This high engagement confirms strong investor interest. The price range spanned from a high of 428.4 rupees to a low of 278 rupees, closing the quarter at 283.5 rupees.
Key Financial Ratios: The reported financial ratios underpin the stable position:
Annualized EPS stands at 5.32 rupees.
Net worth per share is 106.20 rupees.
Total asset value per share is 106.43 rupees.
The Liquidity ratio is exceptionally strong at 56.32, confirming the company is highly capable of meeting its short-term obligations.
The strong governance framework, with the CEO personally certifying the financial report, coupled with controlled operational expenses and a significantly reduced debt burden, positions Peoples Power Limited for continued growth and stability, despite the inherent risks associated with hydropower operations like hydrology risk and natural challenges.
For More: Peoples Power Limited Q1 Report
