⚡ Flash Summary

KAPCO’s financial results for the quarter ended September 30, 2025, reveal a concerning downturn. Revenue generation has come to a standstill, with a reported revenue of zero for the period. Consequently, the company posted a net profit of PKR 4.876 million, significantly lower than the PKR 1,162.207 million recorded in the same quarter last year. This drastic reduction in profitability is primarily attributable to the absence of revenue, which is quite alarming.

📌 Key Takeaways

• ⚠️ Revenue from contracts with customers is zero for the quarter ended September 30, 2025.
• 📉 Gross Loss significantly improved from (PKR 977.828) thousand to (PKR 831.400) thousand.
• 😕 Operating profit declined sharply from PKR 1,269.605 million to PKR 216.131 million.
• 💸 Finance costs decreased from PKR (205.496) thousand to (PKR 5.020) thousand.
• 📊 Profit before income tax decreased from PKR 1,064.105 million to PKR 211.111 million.
• 🧾 Income Tax showed significant drop from PKR 98.102 million to PKR (206.235) million.
• 📉 Profit for the period saw a massive reduction from PKR 1,162.207 million to PKR 4.876 million.
• 📉 Earnings per share (basic and diluted) decreased drastically from PKR 1.32 to PKR 0.01.
• 📉 Property, plant and equipment declined from PKR 1,818.304 million to PKR 1,819.534 million.
• 📉 Trade debts secured decreased from PKR 4,141.087 million to PKR 3,543.144 million.
• 📉 Investments at fair value decreased from PKR 41,071.844 million to PKR 38,634.857 million.
• 💰 Cash and cash equivalents at the end of the period decreased from PKR 827.449 thousand to PKR 1,080,406 million.

🎯 Investment Thesis

Given the dire financial results, highlighted by the absence of revenue and a steep decline in profitability, a SELL recommendation is warranted for KAPCO. The lack of revenue raises significant concerns about the company’s future prospects and ability to sustain its operations. With the current financial performance, a price target reflecting substantial downside is justified. The time horizon for this recommendation is short to medium-term, contingent on the company’s ability to demonstrate a recovery in revenue generation.