PIAHCLA 9MCY25 loss widens

May 11, 2026 (MLN):  PIA Holding Company Limited (PSX: PIAHCLA) reported a massive 3.26x deterioration in its financial performance for the nine months ended September 30, 2025, with its consolidated net loss widening to a staggering Rs24.4bn compared to a net loss of Rs7.48bn in the corresponding period last year.

Reflecting this severe bottom-line contraction, the loss per share for 'A' class ordinary shares worsened to Rs4.68 from Rs1.47, while the loss per share for 'B' class ordinary shares worsened to Rs2.34 from Rs0.73 in 9MCY24.

The widening loss was initially triggered by shrinking core margins. PIAHCLA’s net revenue saw a slight 1% year-on-year dip, falling to Rs181.21bn from Rs183.50bn.

However, the cost of services grew by 7% to Rs155.14bn (which included a massive Rs51.96bn hit strictly from aircraft fuel). Because direct costs climbed while revenue slightly contracted, the company’s gross profit plummeted by 32%, dropping to Rs26.07bn from Rs38.58bn in the prior year.

On the operational front, the holding company made aggressive efforts to consolidate overheads. Administrative expenses were nearly halved, plunging 48% to Rs9.12bn.

Furthermore, net "other income" surged by 62% to Rs5.44bn. However, the company booked a heavy Rs2.06bn charge for other provisions and adjustments, a sharp negative turnaround from the Rs489.89m gain recorded last year. Weighed down by the shrinking gross margins and these new provisions, the profit from operations fell by 24% to Rs13.59bn.

The company did find a brief respite in currency dynamics, recording a positive net exchange gain of Rs1.32bn (a major turnaround from the severe Rs1.72bn exchange loss suffered in 9MCY24). This cushioned the operational drop, allowing the profit before interest and taxation to dip by only 8% to Rs14.91bn.

The absolute devastating blow to PIAHCLA's bottom line came from its debt servicing. Finance costs skyrocketed by 92%, nearly doubling to a crippling Rs41bn from Rs21.36bn in the preceding year.

This massive financial burden completely wiped out the operating profits, plunging the loss from continued operations to Rs26.10bn.

While the company benefited from a positive Rs4.67bn contribution from discontinued operations and a 29% lower taxation expense of Rs1.65bn, it was forced to absorb a new minimum tax levy of Rs1.33bn.

Ultimately, the crushing weight of the finance costs proved too heavy, causing PIA Holding Company Limited to close the nine-month period with its net loss swelling to Rs24.4bn.

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