Unipro: H1 2026 profit flat, but valuation remains low

On August 30, Unipro released its results for the first half of 2026: revenue and net profit were flat year on year, with net margin holding at 32.6%. In this review, we examine what lies behind the stable figures and why the shares trade at a discount to their own history.

Key takeaways

— Revenue and profit for H1 2026 remained at last year's levels, with net margin at 32.6%

— Net debt is negative: minus RUB 90.6 billion, equivalent to almost a year and a half of profit

— P/E for the last twelve months is 1.53, significantly below the three-year average EV/EBITDA multiple of 1.06

— No dividends paid over the last 12 months, but the model implies a payout of 0.79 of profit

— Operating cash flow for the last twelve months is RUB 35.8 billion, exceeding net profit for the same period

— Market capitalization is RUB 60.1 billion, less than annual net profit

— Return on equity is 16.5%, supporting investment attractiveness

Key figures, RUB bn

Revenue and profit for H1 2026 remained at last year's levels, with net margin at 32.6%

For H1 2026, Unipro's revenue amounted to RUB 134.3 billion, matching the figure a year earlier. Net profit also remained unchanged, staying at RUB 39.4 billion for the last twelve months, but for the reported period it was RUB 43.8 billion (calculated: RUB 39.4 billion for the half-year).

Net margin for H1 2026 is 32.6%, same as a year earlier. This indicates stable operational efficiency, but also a lack of growth drivers.

Net debt is negative: minus RUB 90.6 billion, equivalent to almost a year and a half of profit

As of the latest balance sheet date, Unipro's net debt was minus RUB 90.6 billion, meaning the company has a net cash position. This corresponds to about 2.3 times annual profit for the last twelve months (RUB 39.4 billion).

Over the last twelve months, net debt has not changed, indicating no major borrowings or repayments. This liquidity cushion allows the company to finance investments or pay dividends without taking on debt.

P/E for the last twelve months is 1.53, significantly below the three-year average EV/EBITDA multiple of 1.06

Unipro's market capitalization is RUB 60.1 billion, which, with net profit of RUB 39.4 billion for the last twelve months, gives a P/E of 1.53. This is an extremely low level, reflecting market distrust in the sustainability of earnings or expectations of a decline.

The three-year average EV/EBITDA multiple is 1.06, also indicating a cheap valuation. However, comparing P/E with EV/EBITDA is not correct, but both indicators suggest that the market values the company significantly below its historical levels.

No dividends paid over the last 12 months, but the model implies a payout of 0.79 of profit

Over the last twelve months, Unipro has not paid dividends. Nevertheless, the company's model estimates a fair yield of 12.0%, implying a payout ratio of 0.79 of profit.

If the company returns to payments at this level, the dividend yield could become attractive, especially at the current low valuation. However, the absence of payments last year may be due to investment plans or regulatory restrictions.

Operating cash flow for the last twelve months is RUB 35.8 billion, exceeding net profit for the same period

Operating cash flow for the last twelve months amounted to RUB 35.8 billion, which is higher than net profit for the same period (RUB 39.4 billion). This indicates high earnings quality: the company generates enough cash to cover its operational needs.

Positive operating cash flow with negative net debt means the company can finance capital expenditures and dividends without increasing debt.

Market capitalization is RUB 60.1 billion, less than annual net profit

Unipro's market capitalization is RUB 60.1 billion, which is less than net profit for the last twelve months (RUB 39.4 billion). This means the market values the company cheaper than its annual profit.

This situation can occur when there are expectations of declining profits or hidden risks. However, with stable cash flow generation, this may indicate undervaluation.

Return on equity is 16.5%, supporting investment attractiveness

Return on equity (ROE) for the last twelve months was 16.5%. This is a high figure, indicating the company's ability to efficiently use shareholders' funds.

With such profitability and low valuation, the shares may be of interest to long-term investors, especially if the company returns to paying dividends.

Valuation on the latest reported figures

Bottom line

Bottom line: Unipro shows stable but not growing results: revenue and profit for H1 2026 were unchanged, with margin at 32.6%. The company has negative net debt and generates operating cash flow above net profit, indicating financial stability. However, the absence of dividends and low valuation (P/E 1.53) raise the question of why the market does not believe in growth. For a shareholder, the main question is whether the company will return to payments and whether it can find drivers to increase profits.