IBFL

⚡ Flash Summary

IBFL’s financial results for the quarter ended September 30, 2025, reveal a mixed performance. While the company reported a net sales of PKR 24.91 billion, this represents a decline compared to PKR 27.05 billion in the same quarter last year. Profitability has also been significantly impacted, with a profit for the period decreasing from PKR 582.66 million in Q3 2024 to PKR 151.84 million in Q3 2025. This decline in profitability is a key concern for investors.

📌 Key Takeaways

• 📉 Net sales decreased to PKR 24.91 billion in Q3 2025 from PKR 27.05 billion in Q3 2024.
• 📉 Profit for the period significantly dropped to PKR 151.84 million in Q3 2025 compared to PKR 582.66 million in Q3 2024.
• 💸 Earnings per share (EPS) declined to PKR 0.49 in Q3 2025 from PKR 1.88 in Q3 2024.
• ⚠️ Cost of goods sold decreased but not enough to offset sales decline, impacting gross profit.
• 📉 Gross profit decreased from PKR 2.24 billion to PKR 1.49 billion.
• ⚠️ Finance costs decreased to PKR 207.41 million from PKR 370.63 million.
• 🔻 Nine-month sales decreased to PKR 78.24 billion in 2025 from PKR 91.04 billion in 2024.
• 🔻 Nine-month profit decreased to PKR 1.59 billion in 2025 from PKR 1.73 billion in 2024.
• 💰 Cash flow from operations is PKR 4.97 billion.
• 💼 Total capital employed increased to PKR 72.24 billion from PKR 68.35 billion.
• ⛔️ No cash dividend, bonus shares, or right shares were announced.

🎯 Investment Thesis

Given the declining revenue, significant decrease in profitability, and reduced EPS, a SELL recommendation is warranted for IBFL. The company’s financial performance indicates underlying operational and market-related challenges. The price target should be revised downwards to reflect the lower earnings potential and increased risks. Time horizon is short term, expecting further decline in the stock price.