⚡ Flash Summary

AKD Hospitality’s financial results for the quarter ended September 30, 2025, indicate a mixed performance. While revenue remained consistent at PKR 1.5 million compared to the same period last year, the company experienced a significant decrease in profit after tax, falling from PKR 643,686 to PKR 438,685. This decline in profitability is primarily attributed to increased administrative and general expenses. The company did not declare any interim dividend for the period.

📌 Key Takeaways

• ⚠️ Revenue remains stagnant at PKR 1.5 million compared to September 2024.
• 📉 Profit after tax declines from PKR 643,686 to PKR 438,685, a ~32% decrease.
• ⬆️ Administrative and general expenses rise significantly from PKR 701,064 to PKR 906,065.
• 💰 No interim dividend declared for the period ended September 30, 2025.
• 📊 Earnings per share (EPS) decreased from PKR 0.26 to PKR 0.17.
• ✅ Total Equity increased from PKR 37.02 million to PKR 42.47 million.
• 🏦 Bank balances decreased from PKR 14.12 million to PKR 13.21 million.
• 🏢 Long-term investments increased from PKR 27.19 million to PKR 31.75 million.
• ✅ Other comprehensive income shows a gain of PKR 4.56 million in Sep-2025, compared to a loss of PKR 0.53 million in Sep-2024.
• ⬆ Capital Contribution Increased from 12.95 million to 13.40 million
• ➖ Cash flow from operating activities went from an inflow of PKR 293,890 to an outflow of PKR -1,353,524.
• ⬆ The company’s authorized share capital remains constant at 1,000,000,000 ordinary shares.
• ❌ No bonus or right shares were declared.
• ⬆ Unrealized gain on remeasurement of investments increased by PKR 4,560,000.

🎯 Investment Thesis

Based on the current financial performance, a HOLD recommendation is appropriate. While the increase in equity and investments are positives, the declining profitability, EPS, and negative operating cash flow warrant caution. Further monitoring of the company’s performance and cost management strategies is needed. Price target will remain around existing levels with no real movement expected in the near term.