Engro Powergen Qadirpur H1 earnings decline 25% as higher costs offset revenue gains.

Engro Powergen Qadirpur Limited recorded profit after tax of Rs346.41 million for the half year ended June 30, 2026, down 24.7 percent from Rs459.92 million in the corresponding period of 2025.

Earnings per share (EPS) stood at Rs1.07 compared with Rs1.42 previously. Despite the decline, the board of directors approved an interim cash dividend of Rs1.00 per share for the second quarter.

Top Line Improves While Profitability Lags

Sales revenue rose 15 percent to Rs6.06 billion for the half year. Gross profit, however, contracted to Rs599.56 million from Rs646.08 million as the cost of revenue increased at a faster pace than top-line growth.

Profit from operations declined to Rs382.88 million. A swing in net finance cost from income to expense further pressured the bottom line. Taxation remained relatively low given the company’s tax structure.

Quarterly Numbers Show Sequential Strength

The second quarter delivered a strong recovery, with profit rising to Rs194.97 million from Rs75.33 million in the same period a year earlier. Revenue in Q2 jumped nearly 35 percent, reflecting better plant availability and higher dispatch levels.

This quarterly rebound helped cushion the overall half-year decline following a softer start to the year.

Financial Position and Cash Flows

Total equity held steady at Rs11.57 billion. Short-term borrowings were brought down during the period, improving the overall leverage profile. Property, plant, and equipment stood at Rs9.43 billion after accounting for depreciation.

Cash generated from operations was significantly lower than the prior year, though it remained positive. The company continued to maintain its maintenance reserve through scheduled internal transfers.

Shareholder Payout and Upcoming Dates

The Rs1.00 per share interim dividend will be paid to members registered by August 11, 2026. Share transfer books will remain closed from August 12 to 13, 2026. The full quarterly report will be available through the Pakistan Stock Exchange (PUCARS) system and the company website.

Despite the half-year earnings drop, the board opted to maintain a modest interim payout, signaling confidence in the underlying cash generation capabilities of the power plant.