📉 NPL: SELL Signal (8/10) – Financial Results for the 1st Quarter ended September 30, 2025

📌 Key Takeaways

• 📉 Revenue from contracts with customers decreased by 38.8% YoY, from PKR 2,731.3 million to PKR 1,672.1 million.
• 💰 Cost of sales decreased by 3% YoY, from PKR 1,320.4 million to PKR 1,281.5 million.
• 📉 Gross profit decreased by 72.3% YoY, from PKR 1,410.9 million to PKR 390.6 million.
• 🏢 Administrative expenses increased by 4.7% YoY, from PKR 123.5 million to PKR 129.3 million.
• ⬆️ Other income decreased by 1.9% YoY, from PKR 444.3 million to PKR 435.9 million.
• 📉 Profit from operations decreased by 59.7% YoY, from PKR 1,731.6 million to PKR 697.2 million.
• 📉 Finance cost increased by 29.7% YoY, from PKR 5.4 million to PKR 7.0 million.
• 📉 Profit before levy and taxation decreased by 60.0% YoY, from PKR 1,726.2 million to PKR 690.2 million.
• 💸 Levy expenses decreased by 99.1% YoY, from PKR 55.8 million to PKR 0.5 million.
• 📉 Profit before taxation decreased by 58.7% YoY, from PKR 1,670.4 million to PKR 689.7 million.
• 📉 Taxation expenses increased significantly from PKR 18.4 million to PKR 105.4 million.
• 📉 Profit after taxation decreased by 64.6% YoY, from PKR 1,652.0 million to PKR 584.3 million.
• 📉 Earnings per share (EPS) decreased by 64.7% YoY, from PKR 4.67 to PKR 1.65.
• 🚫 No cash dividend, bonus shares, or right shares were declared.

🎯 Investment Thesis

Given the significant decline in revenue, profitability, and EPS, a SELL recommendation is warranted for Nishat Power Limited. The company’s financial performance indicates substantial challenges in its operational environment, and the lack of dividend declaration further diminishes its attractiveness to investors. The price target should be revised downwards to reflect the deteriorating financial outlook, with a short-term time horizon to account for potential further declines. More valuation is needed.