⚡ Flash Summary

Power Holding Limited’s condensed statement of profit or loss for the three months ended September 30, 2025, reveals a significant decrease in net profit compared to the same period last year. The net profit after taxation has fallen from PKR 173.11 million in 2024 to PKR 63.73 million in 2025, indicating a substantial downturn in profitability. This decline is largely attributed to a decrease in grants from the power sector and lower other income. The company’s earnings per share (EPS) also experienced a sharp drop, from PKR 115.41 to PKR 42.49.

📌 Key Takeaways

• 📉 Net profit after taxation decreased significantly from PKR 173.11 million to PKR 63.73 million.
• 📉 Earnings Per Share (EPS) dropped from PKR 115.41 to PKR 42.49.
• 📉 Grant from the power sector decreased from PKR 36.21 billion to PKR 19.60 billion.
• 📉 Other income declined from PKR 250.29 million to PKR 97.54 million.
• ⬆️ Operating cost increased from PKR 6.48 million to PKR 7.78 million.
• ⬇️ Profit before taxation decreased from PKR 243.82 million to PKR 89.76 million.
• ⬇️ Provision for taxation decreased from PKR 70.71 million to PKR 26.03 million.
• ↔️ Authorized Capital remains unchanged at PKR 15 million.
• ↔️ Issued, Subscribed and Paid up Capital remains unchanged at PKR 15 million.
• ⬆️ Accumulated profit increased from PKR 831.71 million to PKR 895.44 million.

🎯 Investment Thesis

Considering the significant decline in profitability, EPS, and the company’s heavy reliance on government grants, a SELL recommendation is appropriate. The price target should be revised downwards to reflect the reduced earnings potential and increased risks. The time horizon for this recommendation is SHORT_TERM, as the company’s financial health requires immediate and drastic improvements.