⚡ Flash Summary

First Capital Securities Corporation Limited (FCSC) reported a profit after tax of Rs. 181.527 million for the quarter ended September 30, 2025, a significant turnaround from a loss of Rs. 57.976 million in the corresponding quarter of the previous year. The improvement is driven by a substantial increase in unrealized gains on investments, which reached Rs. 166.973 million compared to Rs. 48.309 million in the prior year. Operating expenses also decreased to Rs. 4.875 million from Rs. 8.814 million, contributing to the increased profitability. The earnings per share (EPS) improved to Rs. 0.57, a notable contrast to the loss per share of Rs. 0.18 in the same quarter last year.

📌 Key Takeaways

• 💰 FCSC reported a profit after tax of Rs. 181.527 million, reversing a loss of Rs. 57.976 million from the previous year.
• 📈 EPS significantly improved to Rs. 0.57, compared to a loss per share of Rs. 0.18 in the corresponding quarter of the previous year.
• 📊 Unrealized gains on investments surged to Rs. 166.973 million from Rs. 48.309 million year-over-year.
• 📉 Operating expenses decreased to Rs. 4.875 million from Rs. 8.814 million year-over-year.
• 💼 First Capital Equities Limited (FCEL) reported a profit of Rs. 105.183 million, up from Rs. 27.702 million in the prior year.
• 🚫 FCEL’s brokerage income remained NIL for both periods due to the discontinuation of operations.
• 🇱🇰 Lanka Securities (Pvt.) Limited generated revenue of LKR 251.638 million and a net profit of LKR 101.016 million.
• ⭐ First Capital Investments Limited (FCIL) posted a net profit of Rs. 37.998 million, a reversal from a loss of Rs. 64.196 in the prior year.
• 👨‍💼 FCIL’s asset management fees increased to Rs. 1.041 million from Rs. 721,634 year-over-year.
• 💧 Evergreen Water Valley (Pvt.) Limited posted a loss after taxation of Rs. 14.040 million with a loss per share of Rs. 19.63.
• 📈 Evergreen Water Valley’s sales increased by 1930.39%, reaching Rs. 292.836 million compared to Rs. 14.422 million year-over-year.
• 🏦 Finance costs for Evergreen Water Valley increased to Rs. 0.31 million from Rs. 0.003 million due to lease obligations.
• 👀 The company focuses on maintaining growth and optimizing revenue generation from core operations and treasury management.
• 🤝 Directors express gratitude to shareholders and employees for their support and dedication.

🎯 Investment Thesis

The company is a “BUY”. Rationale: The company’s successful turnaround, driven by improved investment gains and cost management, makes it an attractive investment. The earnings beat and the strong performance of key subsidiaries indicate growth potential. Price Target: Based on the improved EPS and potential for future growth, a price target of Rs. 12 is estimated. Time Horizon: MEDIUM_TERM (12-18 months)