Meta Description: Is Eskom really profitable? It reported R30.3 billion profit for the year to March 2026. See what drove it, and the debt, sales and municipal arrears risks.
Last updated: 8 October 2026
Short Answer
Yes, on its reported numbers. Eskom posted a group profit after tax of R30.3 billion for the year ended 31 March 2026, up from a restated R14.0 billion, and SAnews described it as the second consecutive profitable year (31 August 2026). The profit is real in accounting terms, but it was helped by a 12.74% tariff increase, government debt relief and a large fall in a non-cash charge, while sales volumes fell and municipal arrears rose. Profit does not mean the financial risks have gone.
Key Takeaways
- Profit after tax was R30.3 billion for the year to March 2026, and cash and equivalents were R124.9 billion (SAnews and SABC News, 31 August 2026).
- Business Day reported on 31 August 2026 that revenue rose 4.1% on the tariff increase, while electricity sales volumes fell 6.2%.
- Municipal arrear debt rose by R17.0 billion to R111.6 billion, according to Eskom as quoted by BusinessTech.
- Eskom had R80 billion of government debt relief in the year, according to Green Building Africa (3 September 2026).
What the Results Show
According to SAnews (31 August 2026), the EBITDA margin improved to 30.63% from a restated 28.75%. Sunday World reported profit before tax of R39.4 billion, up from R21.9 billion, EBITDA of R108.6 billion and revenue of R354.7 billion. Business Day reported that primary energy costs rose 1% to about R152 billion. SAnews quoted chairperson Mteto Nyati: “This is the second consecutive year that Eskom has delivered a profit.” Chief executive Dan Marokane described a move “from recovery to transformation.”
A note on the earlier year
The comparison year changed. Eskom’s interim release of 28 November 2025 gave a FY2025 profit after tax of R16 billion, while the August 2026 reports compare with a restated R14 billion. Readers should use the restated figure when comparing.
What Helped the Profit
- Tariffs: A 12.74% increase approved by NERSA lifted revenue, according to Sunday World and Business Day.
- Lower one-off charges: Business Day reported that a non-cash fair-value and foreign-exchange charge fell from R10.5 billion to about R1 billion, improving the comparison by about R10 billion. The chief financial officer, Calib Cassim, said a benefit of that scale is unlikely again.
- Lower costs: Open-cycle gas turbine spending fell from about R18 billion to R7 billion. Business Day said primary energy costs were R11.5 billion lower once a prior-year diesel rebate is excluded.
- Government support: Green Building Africa reported R80 billion of debt relief in the year, and Sunday World reported that the Finance Minister later approved converting the support into equity.
The Warning Signs
Falling sales
Business Day reported on 31 August 2026 that sales volumes fell 6.2% and industrial demand fell 22.5%, which Eskom attributes to weak industrial demand, embedded self-generation and efficiency gains. Sunday World reported sales of 178 TWh, down from 189.7 TWh. Eskom estimates 2 GW to 3 GW of surplus generation capacity. When fewer units are sold, tariffs must do more of the work, and Eskom said “Tariff increases alone cannot secure Eskom’s future,” according to BusinessTech.
Municipal arrears
Arrears rose 17.9% to R111.6 billion at the end of March and to about R119 billion by June, according to Business Day and Green Building Africa. Eskom warned the debt could reach R358 billion by 2031 if nothing changes. Business Day reported on 3 August 2026 that the restructuring task team put it at more than R114 billion, so the numbers differ by date and source. Business Day also reported that Eskom and Treasury are withholding equitable-share allocations from defaulting municipalities, which helped secure a R5.2 billion payment from Johannesburg.
Debt
Debt securities and borrowings were R356 billion at the end of March and about R320 billion by June after a R38 billion bond was settled, Business Day reported. Sunday World gave net debt of R313.3 billion, down from R358.7 billion. Gross and net figures measure different things, so they are not directly comparable.
Audit and governance
Sunday World reported that the audit opinion was qualified again, citing weaknesses in recording irregular expenditure and internal controls, with irregular expenditure of R4.9 billion, down from R10.9 billion. We did not find the audit report itself, so this is unconfirmed. The same report says auditors agreed Eskom remains a going concern.
Credit Ratings and Borrowing Costs
SAnews reported on 31 August 2026 that Eskom received its first credit-rating upgrade in more than a decade, with S&P Global, Fitch and Moody’s all taking positive rating actions. It said the upgrade is expected to lower future borrowing costs. That matters because interest on debt is a major cost, and cheaper borrowing would make future profits easier to sustain.
Is Profit the Right Test?
A profit shows that revenue exceeded costs, including interest. It does not show whether customers are better off, because the tariff increases were a big contributor. Operationally, BusinessTech and Sunday World reported an energy availability factor of 65.16%, below the 70% target (Sunday World said up from 60.6%), and SAnews reported four load-shedding days totalling 26 hours in the year. Nyati and Marokane say profits will be reinvested in Eskom Green, distribution customer service, coal fleet reliability and grid expansion. Business Day reported planned capital spending of R343 billion over five years and that Eskom does not plan to borrow in the 2027 financial year.
What We Still Do Not Know
- Whether profit will hold: Mr Cassim said it could “slip slightly”, according to Business Day.
- The final audit opinion wording, which we could not confirm from the audit report.
- How quickly municipal arrears will be collected or written off.
- How unbundling will affect Eskom’s earnings and lender arrangements, which the Presidency says it wants to protect.
Frequently Asked Questions
How much profit did Eskom make?
R30.3 billion after tax for the year to 31 March 2026, according to SAnews.
Was it profitable the year before?
Yes. The restated figure was R14.0 billion, though an earlier interim release gave R16 billion.
Does profit mean Eskom no longer needs government help?
Not according to the reports: R80 billion of debt relief was received in the year, and Treasury remains involved in the reforms.
Why are municipal arrears a problem?
Eskom called them a serious threat to its long-term financial sustainability, according to Sunday World.
Will tariffs keep rising?
SAnews reported that Eskom agreed with the shareholder to keep price increases in single digits. Confirm future increases with NERSA.
Sources
- SAnews: Eskom records second year in the green (31 August 2026)
- SABC News: Eskom profits more than double to R30bn in 2025/26 (31 August 2026)
- Business Day: Eskom profit more than doubles but weaker sales pose new problem (31 August 2026)
- BusinessTech: Eskom records over R30 billion in profit, charging customers more as sales decline (31 August 2026)
- Sunday World: Eskom posts R30bn net profit but debt, municipal arrears remain threats (31 August 2026)
- Green Building Africa: Eskom turnaround faces growing pressures despite stronger results (3 September 2026)
- Business Day: No further debate, Eskom transmission plan must be executed (3 August 2026)
- Eskom: Interim results for the six months ended 30 September 2025 (28 November 2025)
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