Power utility Eskom has recorded a profit after tax of R30.3 billion for the financial year ending 31 March, more than doubling the previous year’s R14 billion and marking a second consecutive year in the black.
The state-owned enterprise announced its annual results on Monday morning, revealing continued operational and financial recovery that has seen South Africa go more than a year without load shedding.
Eskom chairperson Mteto Nyati said the power utility is balancing commercial sustainability with its developmental mandate to keep the country connected and growing.
“This is the second consecutive year that Eskom has delivered a profit. That performance was earned through operational recovery and cost discipline. It now allows us to reinvest in Eskom Green, in a better customer experience in distribution, in the reliability of the coal fleet, and in grid expansion so that new generation can connect,” Nyati said.
Financial performance shows steady improvement
The utility’s revenue grew 4.1% to R354.7 billion, driven largely by a 12.74% regulatory tariff increase approved for the period. Earnings before interest, taxes, depreciation and amortisation reached R108.6 billion, with the EBITDA margin improving to 30.63% from 28.75% in 2025.
Group chief financial officer Calib Cassim noted that Eskom received its first credit rating upgrade in over a decade from agencies including S&P Global, Fitch and Moody’s, which will lower future borrowing costs and support capital expenditure plans.
“Government’s debt relief support has been a critical enabler, freeing up cash from operations to be reinvested in the business – notably the generation recovery plan – rather than being consumed by debt servicing, the benefits of which the country is experiencing today,” Cassim said.
Operational turnaround drives results
The financial performance has been underpinned by significant operational improvements. The utility experienced only four days of load shedding during the financial year, totalling 26 hours. South Africa has now gone 469 consecutive days without national load shedding, a streak that began on 16 May 2025.
Eskom’s energy availability factor reached 67.87% year-to-date by late August 2026, the highest performance in six years. The utility also drastically reduced its reliance on expensive open-cycle gas turbines, with diesel expenditure between April and July standing at R807.41 million, representing an 85.67% reduction compared to the same period the previous year.
Group chief executive Dan Marokane said the utility is moving from recovery to transformation, focusing on building a financially sustainable and competitive organisation.
“Sustained profitability, significant progress in our audit recovery programme aimed at strengthening internal controls, and improved efficiencies enable Eskom to continue to address electricity affordability with our shareholder, as we aspire to remain within single-digit price increases,” Marokane said.
Challenges remain despite progress
Despite the positive results, Eskom faces ongoing challenges. Municipal debt has risen 17.9% to R111.6 billion, and electricity sales volumes declined 6.2% during the period, posing risks to future financial sustainability.
The utility’s gross debt stood at R356 billion at the end of March, up from R327.7 billion a year earlier, though officials said this has since reduced.
Marokane highlighted the economic impact of the turnaround, noting that the Council for Scientific and Industrial Research estimated load shedding cost the economy R2.8 trillion in 2023, reducing by 83% to R481 billion in 2024. With minimal load shedding in the 2026 financial year, the impact on the economy was negligible.
“When Eskom is financially sustainable, we can deliver government reform policy faster through providing the energy security that is vital to give confidence to new competitors to enter the marketplace, as well as integrate variable renewable energy into the grid,” he said.
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