⚡ Flash Summary

Pakistan Stock Exchange Limited (PSX) reported strong financial performance for the year ended June 30, 2025, and the first quarter ended September 30, 2025. The company experienced significant growth in profitability, revenue, and earnings per share. Specifically, profit after tax increased by 48% YoY for FY2025 and 1.6x YoY for 1QFY2026. The exchange has been actively launching initiatives for market development, operational excellence, and governance which includes a three-year strategic roadmap that will facilitate faster access to funds, reduced operational and systemic risks, and enhanced liquidity.

📌 Key Takeaways

• 📈 Profit after tax increased by 48% YoY for FY2025, reaching PKR 1,521 Mn.
• 🚀 Pre-tax profit surged by 74% YoY for FY2025, amounting to PKR 1,928 Mn.
• 💰 Operating profit saw a 2.6x YoY increase for FY2025, totaling PKR 401 Mn.
• ⭐ Earnings Per Share (EPS) rose to Rs. 1.90 for FY2025, compared to Rs. 1.28 in FY2024.
• 📊 Operating revenue increased by 16% YoY for FY2025, hitting PKR 2,461 Mn.
• ✨ Other revenue jumped by 53% YoY for FY2025, reaching PKR 1,528 Mn.
• 📉 Expenses were kept under control with only a 3% YoY increase for FY2025, totaling PKR 2,061 Mn.
• 💼 Average Daily Trading Value (ADTV) increased to PKR 42 Bn in FY25 from PKR 23 Bn in the previous year.
• 🌐 Market growth increased to PKR 15 Trn in FY25 from PKR 10 Trn in the previous year.
• 🤝 Partnered with UNCTAD and ADB to integrate GIS data, improving debt transparency.
• 🆕 Launched KSE 100 Price Return Index in June 2025 for price-based market view.
• 💻 Onboarded first Online-Only broker to expand digital access.
• 🛡️ Increased circuit breakers in July 2024 from 7.5% to 10% to manage volatility.
• 🧑‍⚖️ PSX launched a new Complaint Management System in Jun-2025 to empower investors.

🎯 Investment Thesis

Based on the strong financial results, strategic initiatives, and positive market trends, a BUY recommendation is warranted for Pakistan Stock Exchange Limited. The company’s growth in revenue, profitability, and market capitalization, combined with its commitment to innovation and investor protection, make it an attractive investment opportunity. The price target should reflect the increased EPS and overall market growth, with a time horizon of MEDIUM_TERM.