PAEL profit nearly hits Rs3bn in 1HFY26

August 27, 2026 (MLN): Pak Elektron Limited (PSX: PAEL) recorded an 11% increase in its net profit for the half year ended June 30, 2026, with profit after income taxes climbing to Rs2.62bn from Rs2.37bn in the corresponding period last year.

Showing this healthy bottom-line growth, the company's basic earnings per share (EPS) expanded to Rs2.84 from Rs2.66 in 1HFY25.

The top-line showed healthy momentum, with revenue from contracts with customers growing 17% year-on-year to Rs56.99bn from Rs48.74bn.

After accounting for sales tax, excise duty and discounts which rose 11% to Rs14.67bn net revenue posted a 19% increase to Rs42.32bn from Rs35.52bn in the prior period.

Cost of sales rose 23% to Rs31.84bn, outpacing net revenue growth and causing gross profit to expand at a more modest 9% to Rs10.48bn from Rs9.60bn showing some margin compression from rising input costs.

On the expenditure side, selling and distribution expenses rose sharply by 33% to Rs3.15bn, and administrative expenses increased 20% to Rs1.61bn.

Other expenses declined 7% to Rs321.45m, and impairment allowance for expected credit losses fell 29% to Rs72.47m, providing partial relief.

Other income grew 13% to Rs52.04m. These combined movements pulled operating profit down marginally by 2% to Rs5.38bn from Rs5.50bn.

Below the operating line, finance cost declined 7% to Rs1.29bn from Rs1.39bn, providing a meaningful tailwind.

Share of profit from associate surged to Rs950,000 from Rs226,000 more than fourfold though the absolute contribution remained minimal.

Profit before levies and income taxes eased marginally by less than 1% to Rs4.09bn from Rs4.11bn.

Provision for levies declined 45% to Rs686,000, bringing profit before income taxes to Rs4.09bn, broadly flat against Rs4.11bn last year.

The decisive catalyst that drove the bottom-line higher was a significantly lower income tax burden.

Provision for income taxes declined 16% to Rs1.47bn from Rs1.74bn a proportionally far larger reduction than the marginal pre-tax movement providing the amplifying effect that delivered the 11% increase in profit after income taxes for the half year.

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