United Power experienced a marginal 2 per cent rise in profit to Tk 2.98 billion in the second quarter of FY26, despite a more than 22 per cent decline in revenue, as the cost of sales shrank by 40 per cent.
It has been facing diminishing revenue as the government is gradually reducing its dependence on private power producers to reduce costs.
In the October-December quarter of FY26, the company's earnings stood at Tk 5.06 per share, which is 1.94 per cent higher than the EPS of the same quarter a year earlier.
United Power Generation & Distribution Company Ltd. (UPGDCL), established in 2007 and part of the Bangladeshi conglomerate United Group, is a premier private power generator supplying uninterrupted power to industries in export processing zones (EPZs).
It operates multiple gas- and HFO-based plants, providing electricity and steam to industrial, commercial, and government clients.
In the second quarter of FY26, the company's revenue fell 22.41 per cent year-on-year to Tk 7.40 billion. This revenue is the lowest in five years.
Despite the lower revenue, the company managed to increase profits, with its cost of sales slashed to Tk 3.9 billion, the lowest in at least six years.
The company bore only Tk 52.72 as cost of sales per Tk 100 of revenue.
The reason behind the drastic reduction in the cost of sales is not clear. Repeated attempts to reach the company secretary by phone for comments failed.
In the six-month (July-December) period of FY26, profit dropped more than 17 per cent to Tk 5.9 billion compared to the same period of the previous year.
Meanwhile, the share price of United Power dropped 0.58 per cent to Tk 121 per share on Sunday on the Dhaka Stock Exchange (DSE).
According to the earnings disclosure, its consolidated and separate cash flows were lower in the quarter compared to the same quarter a year earlier due to political unrest and nationwide disruptions that adversely affected the collection cycle.
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