Engro Powergen Qadirpur Limited (PSX: EPQL) reported a steep 61% decline in its net profit, logging Rs151.43 million for the first quarter ended March 31, 2026, compared to Rs384.59 million in the corresponding period last year. The bottom-line contraction was primarily driven by rising direct costs that significantly squeezed the company’s gross margins. The company’s earnings per share (EPS) also fell from Rs1.19 to Rs0.47.
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| Metric | Q1FY26 | Q1FY25 | Change |
|---|---|---|---|
| Net Profit | Rs151.43m | Rs384.59m | -61% |
| EPS | Rs0.47 | Rs1.19 | -61% |
| Revenue | Rs3.15bn | Rs3.09bn | +2% |
| Cost of Revenue | Rs2.88bn | Rs2.63bn | +10% |
| Gross Profit | Rs270.86m | Rs467.23m | -42% |
| Operating Profit | Rs159.46m | Rs358.80m | -56% |
Revenue and Cost Pressures
While the company’s revenue edged up slightly by 2% year-on-year to Rs3.15 billion from Rs3.09 billion, the cost of revenue climbed at a much faster pace of 10% , reaching Rs2.88 billion compared to Rs2.63 billion in Q1 2025. Consequently, gross profit took a heavy 42% hit , dropping to Rs270.86 million from Rs467.23 million.
Operating Performance
On the operating front, overheads remained largely in check, with administrative expenses dipping slightly by 1% to Rs107.42 million. However, other expenses surged to Rs4.45 million, and other income dropped 61% to a mere Rs468,000. Dragged down heavily by the shrinking gross profit, profit from operations plummeted 56% to Rs159.46 million from Rs358.80 million in the previous year.
| Expense Category | Q1FY26 | Q1FY25 | Change |
|---|---|---|---|
| Administrative Expenses | Rs107.42m | Rs108.24m | -1% |
| Other Expenses | Rs4.45m | Rs1.39m | +221% |
| Other Income | Rs0.47m | Rs1.20m | -61% |
Finance and Tax Impact
Below the operating line, EPQL faced additional downward pressure. The company recorded a net finance loss/cost of Rs6.71 million , which was a sharp reversal from the net finance income of Rs25.99 million reported in the same period last year. Weighed down by the margin squeeze and the swing in finance income, profit before taxation stood at Rs152.75 million, representing a 60% drop from the prior year’s Rs384.79 million.
After accounting for a substantially higher taxation expense of Rs1.31 million (up 560%), EPQL closed the quarter with a final net profit of Rs151.43 million.
About Engro Powergen Qadirpur Limited
Engro Powergen Qadirpur Limited (PSX: EPQL) is an independent power producer operating a power generation facility at Qadirpur, Sindh. The company is part of the Engro group and plays a role in Pakistan’s energy sector.
