⚡ Flash Summary

D.S. Industries Limited reports a mixed financial performance for the quarter ended September 30, 2025. While the company experienced a significant increase in profit after taxation, rising from PKR 1,567,086 in 2024 to PKR 3,310,350 in 2025, sales plummeted from PKR 2,119,624 to just PKR 35,597. This drastic reduction in sales is a major concern. The company’s earnings per share also increased from PKR 0.02 to PKR 0.04. The Board of Directors did not recommend any cash dividend, bonus shares, or right shares.

📌 Key Takeaways

• 📉 Sales experienced a massive decrease, falling from PKR 2,119,624 to PKR 35,597.
• 📈 Profit after taxation more than doubled, increasing from PKR 1,567,086 to PKR 3,310,350.
• ⬆️ Earnings per share (EPS) rose from PKR 0.02 to PKR 0.04.
• ❌ No cash dividend was declared for the quarter.
• ➖ No bonus shares were announced.
• ➖ No right shares were recommended.
• ⚠️ Operating profit shifted from a profit of PKR 1,018,787 in 2024 to a loss of PKR (306,956) in 2025.
• 💡 Other income decreased from PKR 4,354,833 to PKR 2,360,153.
• 💸 Finance costs decreased significantly from PKR (57,151) to PKR (4,307).
• 🤝 Share of profit of associate increased substantially from PKR 631,945 to PKR 4,825,811.
• 📉 Unrealized loss on short-term investments amounted to PKR (1,150,542).
• 🧾 Profit before taxation increased from PKR 1,593,581 to PKR 3,364,006.
• 💰 Cash and Cash Equivalents at the End of the period decreased from 63,843,674 to 58,775,913

🎯 Investment Thesis

SELL. The drastic decline in sales revenue is a significant red flag, outweighing the increase in profit after taxation, which appears to be heavily reliant on non-core operational income such as share of profit of associate and lower finance costs. The shift to an operating loss further reinforces the negative outlook. Price Target: Undetermined, pending further investigation into the sales decline and sustainability of other income. Time Horizon: Short Term, until the sales decline is addressed and core business operations stabilize.