PAEL CY25 profit surges 63%

March 16, 2026 (MLN): Pak Elektron Limited (PSX: PAEL) reported a massive 63% surge in net profit, reaching Rs3.85bn for the year ended December 31, 2025, compared to Rs2.37bn in the previous year.

The company's basic earnings per share (EPS) grew robustly to Rs4.24, up from Rs2.72 in the corresponding period last year.

This stellar bottom-line growth was driven by a strong double-digit expansion in top-line sales and a massive reduction in the company's finance costs. PAEL's net revenue grew by an impressive 20% year-on-year to Rs63.52bn from Rs53.11bn.

The company maintained excellent control over direct expenses. Cost of sales increased by 19% to Rs46.38bn, which was slightly slower than the revenue growth. Consequently, gross profit jumped a solid 21% to Rs17.14bn from Rs14.14bn in the prior year.

On the operating side, the company faced inflationary and expansion pressures. Selling and distribution expenses spiked 43% to Rs4.44bn, while administrative expenses rose 16% to Rs3.01bn.

However, an infusion of other income which grew 55% to Rs120.12m along with the sheer strength of the gross profit allowed operating profit to increase by 11% to Rs8.64bn.

The absolute game-changer for PAEL’s bottom line was located below the operating line. The company slashed its finance costs by a massive 30%, dropping to Rs2.58bn from the heavy Rs3.68bn burden recorded last year.

Boosted by these savings and a minor profit from an associate, profit before income taxes jumped 46% to Rs6.04bn from Rs4.13bn.

Even after accounting for a 24% higher income tax provision of Rs2.19bn, the significantly lower debt-servicing costs combined with top-line growth allowed the company to comfortably secure its impressive 63% growth in final net profit.

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