⚡ Flash Summary

ECOP’s financial results for the quarter ended September 30, 2025, reveal a mixed performance. Revenue from contracts decreased from PKR 2,035.22 million in 2024 to PKR 1,887.83 million in 2025. However, the company managed to increase its profit after taxation from PKR 57.12 million to PKR 99.30 million. The company declared no cash dividend, bonus shares, or right shares for the quarter.

📌 Key Takeaways

• 📉 Revenue decreased: Revenue from contracts with customers decreased by 7.25% from PKR 2,035.22 million in 2024 to PKR 1,887.83 million in 2025.
• 💰 Net revenue decreased: Net revenue decreased by 7.1% from PKR 1,724.21 million to PKR 1,600.09 million.
• 💸 Cost of sales decreased: Cost of sales decreased by 7.7% from PKR 1,440.54 million to PKR 1,329.57 million.
• 📊 Gross profit decreased: Gross profit decreased by 4.6% from PKR 283.66 million to PKR 270.53 million.
• 📉 Operating profit decreased: Operating profit decreased by 16.5% from PKR 204.61 million to PKR 170.84 million.
• 📉 Finance costs decreased: Finance costs decreased significantly by 50.3% from PKR 54.62 million to PKR 27.14 million.
• ⬆️ Profit before taxation decreased: Profit before taxation decreased by 4.2% from PKR 149.99 million to PKR 143.70 million.
• ⬆️ Profit after taxation increased: Profit after taxation increased by 73.8% from PKR 57.12 million to PKR 99.30 million due to a large decrease in income tax expense.
• ⬆️ Earnings per share increased: Earnings per share increased by 74.6% from PKR 1.18 to PKR 2.06.
• 🏦 Total assets increased: Total assets increased by 2.9% from PKR 3,345.72 million to PKR 3,443.91 million from June 30, 2025.
• 💵 Cash flow from operations decreased: Net cash generated from operating activities decreased by 42% from PKR 186.72 million to PKR 108.12 million.
• 💸 Investing Activities Decreased: Net cash used in investing activities decreased from (PKR 37.298) million to (PKR 56.239) million.
• 🏛️ Financing Activities Decreased: Net cash used in financing activities decreased from (PKR 257.703) million to (PKR 91.114) million.
• 🚫 No dividend: The board did not recommend any cash dividend, bonus shares or rights shares.
• ✨ Retained Earnings increased: Retained Earnings increased to PKR 962.305 million as of September 30, 2025

🎯 Investment Thesis

HOLD. Despite the increase in profit after taxation and EPS, the decline in revenue and operating profit warrants a cautious approach. The company needs to demonstrate its ability to grow revenue and improve operational efficiency. At this time, I will recommend maintaining a hold rating with the hopes that the company addresses these short comings. The significant decrease in income tax expense also warrants a re-evaluation to ensure that this trend is sustainable.