What were Eskom's profit after tax and key operational improvements in the 2026 financial year?

Eskom reported a profit after tax of 30.3 billion rand ($1.9 billion) for the year ended March 2026 — more than double the restated 14.0 billion rand from the prior year, marking its first annual profit in eight years; power cuts dropped sharply to just four days of rolling blackouts, down from 13 days a year earlier and a peak of 329 days in 2024.

Why does municipal debt pose the biggest threat to Eskom’s future financial sustainability?

Municipalities account for over 40% of Eskom’s sales, yet municipal debt rose 17.9% to 111.6 billion rand by March 2026 and could balloon to 358 billion rand by 2031 without intervention; Eskom stated that collecting the 15.8 billion rand owed by municipalities would have increased its earnings by around 15 billion rand, as revenue from non-paying municipalities is only recognised upon cash receipt.

Eskom doubles annual profit, but weak sales and municipal debt cloud outlook

Aug 30, 2026

South Africa's Eskom more than doubled its annual profit to $1.9 billion following operational improvements and tariff hikes, yet rising municipal debt and weak electricity demand continue to threaten its financial outlook.

reuters

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