Urja Khabar
KATHMANDU; Nepal’s hydropower sector recorded a remarkable turnaround in the last Fiscal Year (FY) 2025/26, with 106 companies listed on the Nepal Stock Exchange (NEPSE) reporting a combined net profit of Rs 11.11 billion, up sharply from just Rs 1.22 billion a year earlier.
According to NEPSE data, the companies increased their combined net profits by nearly Rs 10 billion in the fourth quarter, driven largely by declining bank interest rates, higher electricity generation and increased domestic power consumption amid an LPG shortage.
Mohan Kumar Dangi, president of the Independent Power Producers’ Association of Nepal (IPPAN), said lower borrowing costs and higher power generation had significantly improved the companies’ financial performance. Interest rates on project loans, which had reached as high as 13 percent, have fallen to around 6.5 percent, reducing financial costs.
The shortage of liquefied petroleum (LPG) gas in recent months also boosted electricity consumption as households increasingly turned to electric appliances for cooking. Nepal Electricity Authority records show daily electricity demand rising to between 2,500 MW and 3,200 MW during the period.
The companies’ electricity sales revenue rose 28.54 percent to Rs 56.53 billion from Rs 43.98 billion in the previous year. Meanwhile, financial expenses fell 5.64 percent to Rs 19.65 billion.
Upper Tamakoshi Hydropower made one of the biggest turnarounds, moving from a loss of Rs 3.68 billion to a profit of Rs 925.9 million. Its electricity sales revenue jumped 54.09 percent to Rs 10.66 billion, while financial costs declined by 8.51 percent.
In terms of profit, Sahas Urja led the sector with Rs 1.35 billion, followed by Solu Hydropower with Rs 1.11 billion. Mountain Energy Nepal earned Rs 797 million, Chilime Hydropower Rs 720 million, Sanima Middle Tamor Rs 624.2 million, Green Ventures Rs 444.7 million and Super Madi Hydropower Rs 426 million.
Several companies that were in losses last year—including Balephi Hydropower, Madhya Bhotekoshi Hydropower, Mountain Hydro Nepal, Vision Lumbini Urja, Panchthar Power, Sanjen Hydropower, Nyadi Hydropower, Dordi Khola Hydropower, Liberty Energy, Maya Khola Hydropower and Buddhabhumi Nepal Hydropower—returned to profit this year.
However, not all companies performed well. Rasuwagadhi Hydropower posted the sector’s largest loss at Rs 1.44 billion, while Trishuli Jal Vidhyut Company reported a loss of Rs 131.65 million.
