Hydropower companies in Nepal have shown a significant improvement in profits. By the end of the last fiscal year, 89 listed hydro companies reported a combined net profit of Rs. 2.19 billion. In contrast, the previous year, these companies faced a total loss of Rs. 2.53 billion. The increase in electricity sales revenue and insurance compensation for flood damages contributed to this improvement.
Out of 89 companies that released financial reports, 58 companies (65%) made profits, while 31 companies remained in loss. Last year, only 43 companies were profitable, and 46 faced losses. The 58 profitable companies earned a total of Rs. 7.11 billion, marking an 80.61% growth compared to the previous year, while the 31 loss-making companies reported a total loss of Rs. 4.93 billion, lower than Rs. 6.47 billion last year.
Top profit earners include Sahaj Urja Limited with Rs. 902.7 million and Chilime Hydropower with Rs. 679.5 million. Companies with the lowest profits were Three Star Hydro (Rs. 0.25 million) and River Falls Power (Rs. 1.08 million). Upper Tamakoshi Hydro had the highest loss at Rs. 2.57 billion, while Arun Valley Hydro recorded the highest profit growth of 90,984%.
Electricity sales revenue increased by 13.93%, totaling Rs. 38.24 billion, compared to Rs. 33.56 billion last year. Upper Tamakoshi earned Rs. 6.92 billion, and Sahaj Urja earned Rs. 2.64 billion.
Earnings per share (EPS) also improved. Upper Syangja Hydro had the highest EPS at Rs. 34.66, followed by Mountain Energy (Rs. 24.17), Sahaj Urja (Rs. 23.88), Radhi Vidyut (Rs. 20.65), and Mid Solu Hydro (Rs. 17.66). The lowest EPS was recorded by Three Star Hydro at Rs. 0.05.
