Nishat Chunian Power 1HFY26 Swings to Rs899 Million Profit on Lower One-Off Charge

Nishat Chunian Power, an independent power producer that runs a furnace-oil plant in Punjab, swung back to profit in the first half of its financial year. The turnaround came mostly from the absence of a large one-off charge that had sunk the prior-year result, rather than from a stronger operating business.

What the Nishat Chunian Power 1HFY26 results showed

Nishat Chunian Power reported net profit of Rs899.13 million for the six months ended December 31, 2025, a swing from a loss of Rs3.73 billion in the same period a year earlier. Earnings per share came in at Rs2.45 against a loss per share of Rs10.16. The reason for the swing sits in a single line. In the prior year the company booked an adjustment of Rs5.585 billion tied to balances payable by the Central Power Purchasing Agency, a one-off hit from renegotiating its power-purchase terms. With that charge gone this period, the result flipped to profit. Underneath, the operating picture was softer. Revenue fell 16.85 percent to Rs2.31 billion, and cost of sales rose about 38 percent.

Why it matters for power stocks

Pakistan has been reworking its deals with independent power producers to ease circular debt, the chain of unpaid bills across the power sector. Nishat Chunian Power moved to a hybrid take-and-pay model under that process, which ties more of its reward to electricity actually generated rather than guaranteed capacity payments. The renegotiation produced a large accounting charge last year, which is why this year's comparison looks so favourable. The fall in revenue and the rise in costs show the underlying business is still under pressure, so the swing to profit is largely about the one-off dropping out, not about the plant earning more.

Which stocks, and why

This is a direct result for Nishat Chunian Power, and the headline read is positive because the company is back in profit. The quality of that profit is the caveat. It rests on a one-off charge not recurring, while revenue fell and costs rose, so the longevity of the effect is short. The influence is medium because the swing is sizable and the move to a production-linked model is a real structural change for the company, but the half itself was flattered by the base comparison rather than by operating gains.

What to watch

Track the plant's generation and load factor, since profit now follows output under the hybrid model. Watch revenue and the cost of furnace oil, the pace of receivable collections from CPPA-G, and the level of circular debt. Whether the company can grow operating profit without help from one-off comparisons is the real test in coming quarters.