Eskom Doubles Annual Profit to R30.3 billion for Second Consecutive Year in the Black

• Eskom recorded its second straight year of profit, with after-tax earnings more than doubling compared to the previous financial year
• Eskom chair Mteto Nyati credited operational recovery and cost discipline, with capital expenditure plans set to grow significantly from 2029
• Municipal debt owed to Eskom climbed to R111.6bn, while the utility received a qualified audit opinion over irregular expenditure

SOUTH AFRICA — For the financial year ending March 2026, Eskom secured its second straight year of profitability, posting a net income of R30.3 billion—more than twice the R14 billion achieved in the previous period.

The state utility linked this operational turnaround to enhanced power station availability, strict expense management, and a marked decline in expensive diesel-powered emergency generation.

Capital Reinvestment and Fleet Upgrades

Eskom board chairperson Mteto Nyati, who in March admitted that Eskom had service-delivery issues, stated that the business has transitioned from immediate crisis stabilization toward long-term resilience. Nyati noted that operational efficiency and fiscal discipline drove the results.

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Despite a 6.2% decrease in total electricity sales volumes, overall revenue expanded by 4.1% due to tariff adjustments. The generated surplus will fund capital expenditure programs, which are scheduled to scale up from R45 billion in 2026 to over R70 billion annually starting in 2029. Planned capital allocation targets grid expansion, generation reliability, distribution systems, and clean energy initiatives under Eskom Green.

At the close of March 2026, cash reserves totaled R124.9 billion, though R38 billion was applied in April to redeem maturing bonds. Total borrowings dropped to R356 billion by March, declining further to around R320 billion by late June.

Persistent Balance Sheet Strain

Structural risks remain despite the positive headline earnings. Defaulting municipalities saw their outstanding debt to Eskom rise 17.9% to R111.6 billion by the close of the financial year.

Furthermore, auditors issued a qualified audit opinion, citing concerns over how comprehensively irregular expenditure was documented under the Public Finance Management Act (PFMA). On the grid availability side, load shedding was limited to just four days—spanning 26 hours total—throughout the entire 2026 financial period.

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Eskom backs down from solar panel fines

In a related article, Briefly News reported on Eskom's recent decision to refrain from issuing fines to residential customers who fail to register their solar systems by the 30 September 2026 deadline. This development follows significant pushback from energy experts regarding the legality of such enforcement measures.

Source: Briefly News