PAEL Q1CY26 profit grows 32%

April 29, 2026 (MLN): Pak Elektron Limited (PSX: PAEL) reported a robust 32% increase in its net profit for the first quarter ended March 31, 2026, recording Rs870.24m compared to Rs657.03m in the corresponding period last year.

Reflecting this solid bottom-line growth, the company's basic earnings per share (EPS) grew to Rs0.94 from Rs0.71 in Q1 2025.

The profit expansion was primarily driven by a substantial surge in top-line sales. PAEL’s gross revenue from contracts with customers posted an impressive 40% year-on-year increase, rising to Rs27.08bn.

After accounting for proportionally higher sales tax and discounts, net revenue also grew by 40% to Rs20.22bn.

Although the cost of sales grew at a slightly faster rate of 42% (settling at Rs15.25bn), the sheer volume of revenue growth allowed the company to secure a strong 32% expansion in its gross profit, reaching Rs4.97bn compared to Rs3.77bn in the prior year.

On the operational front, the company faced mounting overhead pressures. Selling and distribution expenses spiked by 56% to Rs1.72bn, and administrative expenses increased by 32% to Rs871.59m.

Additionally, "other expenses" witnessed a massive surge, jumping to Rs134.12m. While PAEL benefited from a 22% reduction in its impairment allowance for expected credit losses (down to Rs48.95m), the heavy surge in core operating expenses constrained the operating profit growth to a moderate 14%, settling at Rs2.22bn.

Below the operating line, PAEL found relief through improved financial dynamics. Finance costs saw a slight 2% decline, dropping to Rs693.64m from Rs709.06m. Furthermore, the complete absence of statutory levies this quarter (which had consumed Rs87.67m last year) provided a significant boost.

Propelled by the strong gross margins and stabilized debt-servicing costs, the profit before income taxes surged by 32% to Rs1.52bn.

Even after absorbing a proportionately higher income tax expense of Rs652.24m (up 32% year-on-year), Pak Elektron Limited successfully secured its 32% leap in final net profit, closing the quarter at Rs870.24m.

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