PACRA Maintains Entity Ratings of Nishat Power Limited

The ratings reflect the strong business profile of Nishat Power Limited ("NPL" or "the Company"), supported by a long-term Power Purchase Agreement (PPA) with Central Power Purchasing Agency (CPPA-G) valid until 2035. The PPA provides demand risk coverage, while in-house Operations and Maintenance (O&M) gives the Company the advantage of a well-experienced team. Fuel supply risk is considered low, as the Company procures from multiple suppliers on favorable credit terms. Effective 1 November 2024, the Company executed a PPA Amendment Agreement shifting the capacity/ROE tariff component to a 'Hybrid Take-and-Pay' model. The settlement cleared the Company's longstanding receivables, which stood at PKR 2,504 million as at 9MFY26. During 9MFY26, Nishat Power dispatched 87,852 MWh of electricity to CPPA-G (9MFY25: 51,408 MWh), reflecting a recovery in offtake following the Amendment's effective date. The plant operated at an average capacity factor of 6.84% (9MFY25: 4.00%) with an availability factor of 98.20% (9MFY25: 98.39%), confirming that the plant itself has not been the constraint on generation. The Company recorded revenue of PKR 5,147 million for 9MFY26 (9MFY25: PKR 5,216 million) and a net profit after tax of PKR 1,659 million (9MFY25: net loss of PKR 2,113 million). The equity base of the Company remains strong. Following the retirement of project debt in June 2020, the Company's sole remaining obligation comprises short-term borrowings. Liquidity is around PKR 19.7 billion, reflecting the deployment of surplus cash into mutual funds and other investment vehicles. NPL has also participated, alongside other Nishat Group companies, in a consortium pursuing a strategic stake in Rafhan Maize Products Company Limited, holding a modest share of the Nishat Consortium's equity contribution. Most recently, NPL's board approved joining a seven-company consortium to pursue the privatization of Faisalabad Electric Supply Company (FESCO). These diversification initiatives reduce the Company's long-term reliance on a single-buyer power market.
Sustained financial discipline, coupled with operational performance in line with agreed benchmarks, remains essential. Concurrently, the impact of the revised tariff structure on the Company's financial profile, alongside the evolving dynamics of the power sector, will remain key rating considerations. The successful materialization of the Company's diversification ventures, including its stakes in Nexgen Auto and the Rafhan Maize consortium, and its prospective participation in the FESCO privatization, together with the returns they ultimately generate, will also be monitored as a key rating driver.

About the Entity
Nishat Power Limited was incorporated in Pakistan on 23 February 2007 as a public limited company and commenced commercial operations in June 2010. The Company is a 51%-owned subsidiary of Nishat Mills Limited, the flagship of the Nishat Group, and is listed on the Pakistan Stock Exchange. It owns and operates a 200 MW (gross) / 195.305 MW (net) combined-cycle RFO power plant at Jamber Kalan, District Kasur, Punjab, on a BOO basis, selling electricity to CPPA-G under a 25-year PPA. The Board of Directors comprises seven members, with five representing the Nishat Group and two independent directors. The management team is led by Mr. Ghazanfar Hussain Mirza, CEO, supported by qualified professionals across key functions.