⚡ Flash Summary
Pak Agro Packaging Limited’s financial results for the quarter ended September 30, 2025, show a mixed performance. Revenue increased slightly compared to the same quarter last year, but profitability declined due to higher operating and financial expenses. The company maintains a strong equity base, but short-term borrowings remain high. Overall, the results suggest a need for improved cost management and operational efficiency.
📌 Key Takeaways
- 📈 Revenue increased to PKR 229.47 million in Q3 2025 from PKR 221.56 million in Q3 2024.
- 📉 Gross profit decreased to PKR 25.16 million from PKR 29.75 million year-over-year.
- 💸 Operating expenses slightly increased to PKR 7.64 million from PKR 7.36 million year-over-year.
- 📉 Profit from operations decreased to PKR 17.51 million from PKR 22.39 million year-over-year.
- 💸 Financial expenses decreased to PKR 4.05 million from PKR 6.18 million year-over-year.
- 📉 Profit before taxation decreased to PKR 12.25 million from PKR 14.66 million year-over-year.
- 📉 Net profit decreased to PKR 8.70 million from PKR 10.41 million year-over-year.
- 📉 Basic and diluted EPS decreased to PKR 0.43 from PKR 0.52 year-over-year.
- 🏦 Short-term bank borrowings decreased to PKR 74.47 million from PKR 109.62 million year-over-year.
- ✅ Total equity increased to PKR 452.59 million in Q3 2025.
- 💰 Cash and bank balances increased to PKR 18.88 million from PKR 3.17 million year-over-year.
- ⚠️ Accrued and other liabilities decreased to PKR 27.58 million from PKR 35.82 million year-over-year.
- 🏭 Property, plant, and equipment increased to PKR 464.09 million from PKR 444.46 million year-over-year.
🎯 Investment Thesis
HOLD. While GEMPAPL shows some revenue growth, the declining profitability and high debt levels raise concerns. A ‘Hold’ rating is appropriate until the company demonstrates consistent improvement in cost management, operational efficiency, and earnings. Further analysis is warranted before considering a ‘Buy’ or ‘Sell’ recommendation. The current financials do not justify a higher valuation. A wait-and-see approach is recommended.
Disclaimer: AI-generated analysis. Not financial advice.