B Mirror Report: United Power posted a slight 2 per cent increase in profit to Tk 2.98 billion in the second quarter of FY26, even as its revenue fell sharply by more than 22 per cent, helped by a significant drop in production costs.

The company has been witnessing declining revenue as the government gradually scales back reliance on private power producers in an effort to lower electricity generation expenses.

During the October–December period of FY26, earnings per share rose to Tk 5.06, marking a 1.94 per cent increase compared to the same quarter of the previous fiscal year.

United Power Generation & Distribution Company Ltd (UPGDCL), founded in 2007 and a concern of United Group, is one of the country’s leading private power producers, supplying uninterrupted electricity to industries located in export processing zones (EPZs).

The company operates several gas- and heavy fuel oil-based power plants, delivering both electricity and steam to industrial, commercial and government customers.

In the second quarter, UPGDCL’s revenue declined 22.41 per cent year-on-year to Tk 7.40 billion — the lowest level recorded in the past five years.

However, profit growth was achieved as the cost of sales dropped steeply to Tk 3.9 billion, the lowest in at least six years. This meant the company spent only Tk 52.72 in production costs for every Tk 100 earned in revenue.

The sharp fall in costs could not be immediately explained, as repeated attempts to contact the company secretary for comment were unsuccessful.

For the first half of FY26 (July to December), United Power’s profit decreased by over 17 per cent to Tk 5.9 billion compared to the same period last year.

On the stock market, the company’s share price slipped 0.58 per cent to Tk 121 on Sunday at the Dhaka Stock Exchange.

The earnings report also showed that both consolidated and standalone cash flows weakened during the quarter, mainly due to political instability and nationwide disruptions that slowed down bill collections.