Karachi: Nishat Power Limited (NPL) has announced a decline in its consolidated profit after tax (PAT) for the first quarter of fiscal year 2027, as revealed in a recent analysis by AKD Securities Limited. The company's earnings fell by 7% compared to the previous year and by 34% from the previous quarter, achieving a PAT of PKR 542 million and an earnings per share (EPS) of PKR 1.53. This downturn was attributed to diminished profit contributions from associates and a significant reduction in gross margins.

According to AKD Securities Limited, NPL's net sales grew substantially to PKR 8.2 billion, marking a 4.9 times increase from the previous year and a 40% rise from the previous quarter. However, the company's gross margins declined sharply to 6.3% from 23.4% in the same period last year. The report also highlighted a significant rise in power generation at the company's Residual Fuel Oil (RFO) plant, which produced 152 GWh with a utilization rate of 36%, compared to 32 GWh and a 7.6% utilization rate in the first quarter of fiscal year 2026. This increase was driven by a shift in grid reliance towards RFO generation due to the unavailability of Re-gasified Liquefied Natural Gas (RLNG) supplies.

Despite the earnings decline, AKD Securities Limited maintains a 'BUY' recommendation for NPL, with a target price of PKR 87 per share by December 2026.