Eskom Sees Profitability Amid Falling Demand, Eyes Data Centres and Crypto Mining
Eskom, South Africa's state-owned power utility, has reported its second consecutive year of profitability. The company achieved a group profit after tax of R30.3 billion for the financial year ended March 31, 2026, up from R14 billion in the previous year.
The increase was driven by improved plant availability, cost discipline, and reduced reliance on emergency diesel generation. Revenue grew 4.1%, supported by a regulatory tariff increase of 12.74%. However, overall sales volumes declined 6.2% to 178 terawatt-hours (TWh), with industrial demand alone falling 9.7 TWh or 22.5% year-on-year.
To offset the drop in industrial consumption, Eskom's Distribution division is pursuing a diversified sales-retention strategy. This includes structural growth into data centres and electric-vehicle charging, as well as wheeling optimisation, renewable power purchase agreements, flexible load activation, and negotiated pricing agreements with smelter customers.