KATHMANDU: The Nepal Electricity Authority (NEA) saw its pre-tax net profit decline sharply in fiscal year 2025/26, dropping by Rs 3.87 billion to Rs 5.04 billion from Rs 8.91 billion in the previous fiscal year.
The state-owned utility’s pre-tax net profit had stood at Rs 13.31 billion in fiscal year 2023/24 before falling to Rs 8.91 billion in 2024/25 and further to Rs 5.04 billion in 2025/26.
NEA attributed the latest decline mainly to a significant increase in foreign exchange liabilities, which surged by 272.86 percent to Rs 11.51 billion due to fluctuations in currency exchange rates. Higher interest expenses and depreciation costs also contributed to the pressure on the authority’s earnings.
Despite the decline in overall profit, NEA reported growth in its core operations during the fiscal year. Its total revenue reached Rs 166 billion, while revenue from electricity sales increased by 18.20 percent to Rs 148.62 billion.
The rise in electricity sales helped push NEA’s gross profit up by 13.17 percent to Rs 31.23 billion. Its operating profit also increased by 7.28 percent to Rs 24.81 billion.
NEA’s total assets expanded by 8.9 percent to Rs 779.19 billion during the fiscal year. Of the total, Rs 206.26 billion was invested in ongoing capital projects, reflecting continued spending on infrastructure development.
The authority also reported an increase in online electricity tariff collections, which reached Rs 40.99 billion during the year. Average electricity consumption per customer stood at 2,088 units.
As part of its support for low-income households, NEA distributed 217.3 million units of electricity free of charge to nearly 2.59 million low-income domestic consumers.
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