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Hydropower companies gained notable profits in the last Fiscal Year (FY 2025/26), with 106 such companies listed in the Nepal Stock Exchange (NEPSE) reporting whopping financial gains mainly due to fall in banks’ interest rates and recent shortage of cooking gas.

According to the NEPSE, 106 hydropower companies were able to increase their net profit earnings by around Rs 10 billion in the fourth quarter of the last FY, taking the total profits to Rs 11.11 billion. In the previous fiscal year, these companies earned only Rs 1.22 billion as net profits.

Mohan Kumar Dangi, president of the Independent Power Producers’ Association of Nepal (IPPAN), said that the improvement in profits was due to multiple factors like decline in bank interest rates, increased electricity generation, operation of projects at high capacity during the rainy season, and increased electricity consumption due to the shortage of liquefied petroleum (LP) gas in the market. “Earlier, a project had to pay up to 13 percent interest, but now it has come down to around 6.5 percent, which has created a direct positive impact on expenses of the companies,” Dangi said.

Besides, the shortage of LP gas witnessed in the aftermath of US-Iran conflict for the past few months also helped increase electricity consumption. With the government starting to sell half-filled cylinders of the LP gas, consumers feared a shortage and were attracted to use more electricity in the kitchen.

The record of the Nepal Electricity Authority also shows that the daily electricity demand hit between 2500 MW and 3200 MW in recent days after the shortage of LP gas loomed.

According to the financial statement submitted by the hydropower companies, their earnings from electricity sales increased by 28.54 percent to Rs 56.53 billion. In the previous year, 106 companies sold electricity worth Rs 43.98 billion.

On the other hand, the financial expenses of the companies declined by 5.64 percent to Rs 19.65 billion in the review period.

Meanwhile, the contribution of Upper Tamakoshi Hydropower to the overall profit growth of the sector appeared the largest. The company, which had a loss of Rs 3.68 billion the previous year, bounced back with a profit of Rs 925.9 million last year. The company's electricity sales revenue increased by 54.09 percent to Rs 10.66 billion, while financial costs decreased by 8.51 percent.

Similarly, Sahas Urja topped in terms of the profit amount. The company earned a profit of Rs 1.35 billion, with a growth of 51.84 percent in the review period. Solu Hydropower was second with a net profit of Rs 1.11 billion.

Similarly, Mountain Energy Nepal earned a profit of Rs 797 million, Chilime Hydropower earned a profit of Rs 720 million, Sanima Middle Tamor made a profit of Rs 624.2 million, Green Ventures earned a profit of Rs 444.7 million, and Super Madi Hydropower’s profit stood at Rs 426 million.

Companies like Balephi Hydropower, Madhya Bhotekoshi Hydropower, Mountain Hydro Nepal, Vision Lumbini Urja, Panchathar Power, Sanjen Hydropower, Nyadi Hydropower, Dordi Khola Hydropower, Liberty Energy, Maya Khola Hydropower and Buddhabhumi Nepal Hydropower, which suffered loss last year, have returned to profit this year.

Rasuwagadhi Hydropower incurred the largest loss of Rs 1.44 billion. Trishuli Jal Vidhyut Company witnessed a loss of Rs 131.65 million.