Pace swings to Rs1bn profit in FY26 on surge in other income

September 24, 2026 (MLN): Pace (Pakistan) Limited (PSX: PACE) swung to a consolidated net profit of Rs1.23bn for the year ended June 30, 2026, reversing a loss of Rs528.45m (restated) recorded in the corresponding period last year a complete earnings turnaround driven by a dramatic surge in other income and a swing to profitability in continuing operations.

Showing this sharp recovery, the company's basic earnings per share swung to Rs3.98 from a loss per share of Rs1.07 (restated) in FY25, while diluted EPS stood at Rs3.84 against a diluted loss per share of Rs1.03.

From continuing operations, revenue declined 32% to Rs792.17m from Rs1.17bn, and cost of revenue fell at a faster pace of 56% to Rs308.99m from Rs702.37m, allowing gross profit to expand modestly by 4% to Rs483.17m from Rs464.50m showing a meaningful improvement in gross margin despite the revenue contraction.

Administrative and selling expenses declined 24% to Rs233.49m, providing cost relief.

Other income was the transformative development of the year, surging nearly 28-fold to Rs1.22bn from Rs43.88m last year.

The increase was driven by several factors, including an exchange gain on foreign currency convertible bonds, which swung to a gain of Rs98.21m from a loss of Rs95.06m last year.

The gain from the change in fair value of investment property also rose to Rs42.52m from Rs5.71m, while the company recorded a share of profit from an associate of Rs35.77m, with no comparable amount in the previous year.

These combined movements swung profit from operations to Rs1.47bn from a profit of Rs202.65m more than sevenfold.

Finance cost declined 23% to Rs139.43m from Rs181.83m, providing a further tailwind. Profit before income tax and minimum taxes reached Rs1.51bn, reversing a pre-tax loss of Rs68.53m.

No minimum tax was recorded in the current year against Rs14.59m in FY25, keeping profit before income tax at Rs1.51bn against a pre-tax loss of Rs83.12m.

Taxation rose to Rs133.74m from just Rs4.50m nearly thirtyfold showing the return to profitability, but remaining modest relative to the pre-tax gain. Profit from continuing operations came in at Rs1.38bn, reversing a loss of Rs87.62m last year.

From discontinued operations, the loss after taxation narrowed 67% to Rs146.99m from Rs440.83m a meaningful improvement that further supported the overall result.

Of the total profit attributable to owners of the parent company, Rs1.19bn was recorded, reversing a loss of Rs317.77m, while non-controlling interest contributed Rs42.22m from discontinued operations, reversing a loss of Rs210.67m last year.

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