⚡ Flash Summary

Fateh Industries Limited reported its financial results for the quarter ended September 30, 2025. The company’s sales remained at zero, mirroring the cost of sales, leading to a gross profit of zero. Operating loss for the quarter stood at PKR (1,097,203), slightly improved from PKR (1,441,238) in the same quarter last year. The net loss after taxation was PKR (355,606), an improvement from the PKR (1,451,311) loss in the corresponding quarter of the previous year.

📌 Key Takeaways

• 📉 Sales remained at zero for the quarter ended September 30, 2025, compared to PKR 171,450 in the same period last year.
• ⚠️ Cost of sales also stood at zero for the quarter.
• 😔 Gross profit was zero, down from PKR 11,839 in the same quarter last year.
• 🏢 Administration expenses decreased to PKR 1,097,203 from PKR 1,453,077 year-over-year.
• 📉 Operating loss improved slightly to PKR (1,097,203) from PKR (1,441,238) year-over-year.
• 💰 Other income was PKR 540,000, down from PKR 710,597 in the corresponding quarter last year.
• 💹 Exchange gain was PKR 201,597 compared to an exchange loss of PKR (719,607) last year.
• ❌ Net loss before taxation improved to PKR (355,606) from PKR (1,451,311) year-over-year.
• 💸 Net loss after taxation was PKR (355,606), improved from PKR (1,451,311) last year.
• ✨ Unrealized gain on revaluation of investment was PKR 77,422, down from PKR 114,705 year-over-year.
• 📉 Total comprehensive loss for the period was PKR (278,184), improved from PKR (1,336,606) in the prior year.
• 📉 Loss per share was PKR (0.18), improved from PKR (0.73) in the corresponding quarter last year.
• 💵 Cash and cash equivalents at the end of the period stood at PKR 2,760,624, up from PKR 1,378,773 last year.

🎯 Investment Thesis

Given the zero revenue and ongoing losses, a HOLD rating is appropriate. While there has been an improvement in net losses, the fundamental issue of generating sales needs to be addressed before a positive investment decision can be considered. A potential price target cannot be accurately determined without revenue figures, but a speculative target could be set based on potential turnaround scenarios dependent on future sales improvements. Time horizon would be medium-term, approximately 12-18 months, to observe if strategic changes yield positive results.