⚡ Flash Summary

Bawany Air Products Limited reported a challenging first quarter for 2025, with a significant loss for the period ended September 30, 2025. The company’s loss before income tax widened substantially to (5,661,273) Rupees compared to (1,858,812) Rupees in the same period last year. This increase in losses is primarily driven by higher administrative expenses and finance costs, coupled with a realized loss on sales of shares. There was no revenue reported for either the current or prior periods. No dividends were declared.

📌 Key Takeaways

• ⚠️ No Revenue: Bawany Air Products reported no revenue for Q1 2025, same as Q1 2024.
• 📉 Loss Widening: The loss before income tax significantly increased from (1,858,812) to (5,661,273) Rupees YoY.
• 💸 Increased Expenses: Administrative expenses rose from (1,865,546) to (2,336,446) Rupees YoY.
• 📉 Realized Loss: A realized loss on sales of shares amounted to (1,196,262) Rupees in Q1 2025.
• 💰 Finance Cost Surge: Finance costs spiked from (250) to (2,151,354) Rupees YoY.
• EPS Deterioration: Earnings per share (basic and diluted) decreased from (0.25) to (0.75) Rupees YoY.
• ❌ No Dividends: The company did not declare any cash dividend, bonus shares, or right shares.
• 📉 Accumulated Losses: Accumulated losses increased to (109,940,685) Rupees as of September 30, 2025.
• ⬇️ Cash Decrease: Cash and bank balances decreased from 2,201,915 to 493,520 Rupees since June 30, 2025.
• ⬆️ Share application money remains constant at 3,197,120,000 Rupees

🎯 Investment Thesis

Based on the Q1 2025 results, a SELL recommendation is warranted for Bawany Air Products. The company’s failure to generate revenue, coupled with increasing losses and financial strain, paints a bleak picture. There is no clear path to profitability in the near term. A price target cannot be reasonably estimated given the absence of revenue and consistent losses. The time horizon is short-term, as the issues are immediate and require urgent corrective action.