Inter RAO Q2 2026: Revenue +14.1% but Profit Slumps 38% as Margin Pressure Bites

Inter RAO reported Q2 2026 revenue of RUB 430,059mn, up 14.1% y/y, but net profit fell 38.0% to RUB 22,175mn and EBITDA dropped 25.8% to RUB 28,568mn. Revenue growth decelerated from 16.5% in H1 2026 (and 18.6% in Q1 2026) to 14.1% in Q2, while EBITDA and net profit declines worsened from -7.9% and -17.2% in H1 to -25.8% and -38.0% in Q2, respectively. The divergence between top-line growth and bottom-line contraction points to severe margin erosion.

Q2 2026 y/y growth: revenue up, profits down

What drove the result

The widening gap between revenue and profitability indicates that cost inflation—likely from fuel, power purchases, or operating expenses—is outpacing top-line growth. While segment details are not available, the pattern mirrors Q1 2026, when revenue surged 18.6% but net profit was flat (-1.5%). In Q2, the pressure intensified, with EBITDA margin falling to 6.6% from 10.2% a year ago, and net margin dropping to 5.2% from 9.5%. The company's cash-rich balance sheet (equity ratio ~75% as of Q1 2026) provides a buffer, but operational headwinds are clearly weighing on earnings.

Key figures (RUB mn)

Outlook

The sharp decline in profitability raises concerns about Inter RAO's ability to maintain earnings momentum amid rising costs. With no guidance or dividend updates provided, investors will focus on whether margin pressure is temporary or structural. The company's strong balance sheet could support future M&A or dividends, but without a clear operational turnaround, the earnings trajectory remains challenging. Watch for segment disclosures and any management commentary on cost drivers in the coming quarters.