OCTOPUS

⚡ Flash Summary

Octopus Digital Group’s financial results for the quarter ended September 30, 2025, reveal a mixed performance. The consolidated statement of profit or loss shows a significant decrease in revenue, with a corresponding drop in gross profit. This decline has led to a substantial loss for the period, contrasting sharply with the profit reported in the same quarter last year. The company did not declare any cash dividend or bonus shares.

📌 Key Takeaways

• ⚠️ Revenue decreased from PKR 217.961 million to PKR 212.287 million YoY.
• 📉 Gross profit declined from PKR 120.821 million to PKR 89.742 million YoY.
• ❌ The company reported a loss from operations of PKR 15.907 million, compared to a profit of PKR 5.310 million in the prior year quarter.
• 💰 Finance costs increased from PKR 1.221 million to PKR 2.006 million YoY.
• ❗ Loss before income tax was PKR 17.913 million, versus a profit of PKR 4.088 million last year.
• 📉 The company experienced a net loss after tax of PKR 25.326 million, compared to a profit of PKR 1.474 million last year.
• 📉 Basic and diluted earnings per share (EPS) both decreased from PKR 0.01 to negative PKR 0.16.
• ⛔ No cash dividend was declared for the quarter.
• ⛔ No bonus shares were announced.
• 📊 Un-appropriated profit increased slightly to PKR 1,351.030 million from PKR 1,346.008 million as of December 31, 2024.
• ✅ Total equity increased from PKR 3,003.771 million to PKR 3,423.368 million since December 31, 2024.
• 💵 Cash and cash equivalents increased from PKR 21.527 million to PKR 30.942 million during the nine-month period.

🎯 Investment Thesis

Based on the declining financial performance and negative profitability, a SELL recommendation is appropriate. The company faces significant challenges in revenue generation and cost management, making it a risky investment. Price target is significantly reduced, with a short-term horizon of 6 months, reflecting the urgency of addressing the current issues.