⚡ Flash Summary

TPL Corp’s Q1FY26 report reveals a significant turnaround driven primarily by an unrealized gain in TPL Properties. The group reported a consolidated revenue of PKR 3,580 million, a 91% increase year-over-year, and a profit after tax of PKR 1,229 million compared to a loss of PKR 1,570 million in the corresponding period last year. TPL Properties’ unrealized gain of PKR 1,954 million was the main driver, with TPL Insurance also contributing with a revenue increase of PKR 288 million. Despite some challenges in individual segments like TPL Trakker, the overall performance indicates a strong recovery.

📌 Key Takeaways

• 📈 Consolidated revenue increased by 91% YoY to PKR 3,580 million in Q1FY26.
• 🏢 TPL Properties recorded an unrealized gain of ~PKR 1,954 million.
• страховка TPL Insurance revenue increased by ~PKR 288 million YoY.
• ✅ Group reported a profit after tax of PKR 1,229 million, a major turnaround from last year’s loss.
• 📉 Finance costs decreased by ~61% (PKR 407 million) due to decreased liabilities.
• ⚠️ TPL Trakker’s revenue decreased by 41% YoY.
• 💲 Company incurred a standalone loss after tax of ~PKR 131 million.
• ⬆️ Total equity stood at ~PKR 2,351 million as at September 30, 2025.
• 자동차 Automobile sector demonstrated a growth of 45.7% compared to last year.
• 📉 Headline inflation dropped to a record low of 0.7% in March FY25.
• Surplus Current account recorded a surplus of $691 million during July-February FY2025.
• ⬆️ Exports increased by 7.2% to $21.8 billion
• 🏦 SBP-held reserves reaching $11.1 billion during March FY25.

🎯 Investment Thesis

Given the mixed results, I recommend a HOLD rating on TPL Corp. The improved profitability and reduced financial costs are encouraging, but the reliance on unrealized gains and the challenges in certain segments raise concerns about long-term sustainability. Further clarity on the operational performance of TPL Trakker and a more diversified revenue base would be needed before considering a BUY rating.