⚡ Flash Summary

Mughal Energy Limited’s unaudited interim financial report for the quarter ended September 30, 2025, reveals the company is still in the pre-commercial operation phase, resulting in a loss of Rs 1.864 million, similar to the Rs 1.267 million loss in the same quarter last year. The company attributes this loss primarily to salaries and routine expenses. It is focused on completing its 36.50 MW captive hybrid power plant, with hydro testing complete and electrification underway. The company anticipates achieving commercial operations and expects profitable results thereafter, with COD expected by the end of the calendar year.

📌 Key Takeaways

• 🚧 Mughal Energy reported a loss of Rs 1.864 million for the quarter ended September 30, 2025 (vs. Rs 1.267 million loss in 2024).
• 📉 Loss per share remained at Rs (0.01), consistent with the same period last year.
• 🏭 The company is yet to commence commercial operations.
• 💰 Losses are attributed to salaries and routine expenses.
• 🌱 The company expects profitable results post achieving commercial operations.
• ⚡ A 36.50 MW captive hybrid power plant project is underway.
• 💧 Hydro testing for the power plant is complete.
• 💡 Electrification is currently underway.
• 🗓️ Commercial Operations Date (CoD) is expected by the end of the calendar year.
• 🤝 The board is committed to providing sustained returns to shareholders.
• 🏦 Shariah compliant financing amounts to Rs 1,368.93 million as of September 30, 2025.
• 🏢 Capital commitments stand at Rs 565.07 million.
• 🤝 Gain on sale of store items to Mughal Iron & Steel Industries Ltd amounted to Rs 281.05 million.
• 🧾 Rental income of Rs 10.5 million reported during the quarter.

🎯 Investment Thesis

HOLD. Mughal Energy is currently a speculative investment, tied to the successful completion and operation of its hybrid power plant. The timeline for commercial operations and profitability depends on project execution and external factors. Without revenue and earnings, valuation is difficult. I recommend a HOLD until the company achieves commercial operations and demonstrates revenue generation and profitability. More data is needed before any investment consideration.