⚡ Flash Summary

National Refinery Limited (NRL) reported its financial results for the quarter ended September 30, 2025. The company announced no cash dividend, bonus shares, or right shares. NRL posted a profit after taxation of PKR 1,025.086 million, a significant turnaround from the loss of PKR 7,236.585 million in the same period last year. Revenue from contracts with customers increased to PKR 111,869.867 million, compared to PKR 86,680.953 million in the prior year’s quarter.

📌 Key Takeaways

• 💰 NRL reported a profit after taxation of PKR 1,025.086 million, compared to a loss of PKR 7,236.585 million in Q3 2024.
• 📈 Revenue from contracts with customers increased by 29% to PKR 111,869.867 million from PKR 86,680.953 million year-over-year.
• 📊 Gross profit swung to PKR 4,111.805 million compared to a gross loss of PKR 6,297.241 million in the corresponding period.
• 📉 Finance costs decreased to PKR 1,771.476 million from PKR 2,886.556 million year-over-year.
• 🚫 No cash dividend, bonus shares, or right shares were recommended by the board.
• 💵 Earnings per share (EPS) improved to PKR 12.82 from a loss per share of PKR (90.50) in the same quarter last year.
• ⚠️ Trade discounts, taxes, duties, levies, and price differentials increased significantly from (19,705,141) to (32,295,197).
• 📉 Cost of sales decreased slightly from (73,273,053) to (75,462,865).
• 👍 Operating profit turned positive at PKR 3,639.998 million compared to an operating loss of PKR (6,691,630) million.
• Balance sheet shows total assets of PKR 155,815.229 million compared to PKR 149,495.621 million on June 30, 2025.
• 💼 Reserves increased to PKR 4,407.382 million from PKR 3,382.296 million.
• 📊 Current liabilities increased from PKR 87,060.369 million to PKR 94,199.127 million.

🎯 Investment Thesis

Based on the improved financial performance, a HOLD recommendation is appropriate for NRL. The company has shown a significant turnaround in profitability, but further analysis is required to assess the sustainability of this performance and understand the impact of various risks. A price target cannot be accurately determined without more detailed financial forecasts and valuation analysis. A medium-term horizon is appropriate to monitor the company’s performance and assess the effectiveness of its operational strategies.