At-Tahur Limited (PSX: PREMA), the dairy company that sells milk and dairy products under the Prema brand from its own farm herd, published its results for the first quarter of its 2027 financial year (July to September 2026) on 29 October 2026. Figures below are for the company on its own (unconsolidated).
The headline: a profit after tax of Rs 31.8 M, or Rs 0.15 a share, down 25.8% from Rs 42.9 M (Rs 0.20) a year earlier, even though sales rose 11.6% to Rs 1.73 bn. No dividend was announced.
The quarter in numbers
| Rs M | Jul to Sep 2026 | Jul to Sep 2025 | Change |
|---|---|---|---|
| Sales | 1,732.8 | 1,552.5 | +11.6% |
| Value of milk produced by the herd (at fair value) | 928.2 | 941.4 | −1.4% |
| Fair-value gain on the dairy herd | 309.3 | 245.9 | +25.8% |
| Operating costs | (2,235.5) | (2,122.2) | +5.3% |
| Gross profit | 734.8 | 617.7 | +19.0% |
| Administrative expenses | (103.8) | (92.1) | +12.7% |
| Selling and marketing expenses | (211.6) | (177.3) | +19.4% |
| Other expenses (mostly livestock losses) | (318.7) | (250.7) | +27.1% |
| Other income | 29.4 | 15.5 | +90.5% |
| Profit from operations | 130.1 | 113.0 | +15.2% |
| Finance cost | (76.7) | (50.7) | +51.2% |
| Levy | (21.7) | (19.4) | +11.6% |
| Profit after tax | 31.8 | 42.9 | −25.8% |
| Earnings per share, Rs | 0.15 | 0.20 | −25% |
How to read a dairy farm’s accounts
At-Tahur’s income statement looks different from most companies because its cows are “biological assets”. Two lines sit above operating costs: the value of the milk the herd produces, recorded at market value when the cows are milked, and the change in the herd’s value as animals grow, give birth and as prices move. Against this, losses when animals die or are sold below their book value go into “other expenses”. So the herd revaluation gain and the livestock losses should be read together.
What drove the result
Sales and gross profit grew. Sales rose 11.6% to Rs 1.73 bn and gross profit 19% to Rs 735 M, lifting the gross margin, as the company reports it, to 42.4% of sales from 39.8%. The report does not split the sales growth between prices and volumes. Milk produced by the company’s own herd fell 4% to about 6.0 million litres from 6.26 million.
Herd gains were almost cancelled by herd losses. The herd’s fair value rose by Rs 309 M, up from Rs 246 M, but losses on livestock sold (Rs 176 M) and on animals that died (Rs 120 M) came to Rs 296 M, up from Rs 229 M. The net effect from the herd was about Rs 14 M, against Rs 17 M a year earlier.
Costs below gross profit rose faster. Selling and marketing expenses rose 19%, administrative expenses 13% and other expenses 27%. Within operating costs, dairy supplies, fuel and lubricants and repairs all rose sharply. Profit from operations still rose 15% to Rs 130 M.
Finance cost did the damage. Finance cost rose 51% to Rs 77 M, more than the whole rise in operating profit. That, plus a slightly higher levy, turned a 15% rise in operating profit into a 26% fall in profit after tax.
A seasonal business
The July to September quarter is usually At-Tahur’s weakest. Profit was Rs 24 M in this quarter of 2024 and Rs 43 M in 2025, against Rs 409 M in April to June 2026. The 2026 financial year as a whole earned Rs 821 M (Rs 3.76 a share), so one quarter tells you little about the year.
Cash and the balance sheet
- Cash flow negative. Operating cash flow was negative Rs 139 M, against positive Rs 13 M a year earlier, as working capital absorbed cash and finance costs paid rose to Rs 75 M from Rs 20 M. The company sold Rs 303 M of short-term investments, leaving Rs 32 M.
- Debt. Short-term borrowing was Rs 1.34 bn and long-term financing, including the current portion, about Rs 0.82 bn. Cash was Rs 434 M.
- Directors’ loans. Interest-free loans from the chief executive and his son, counted as equity, fell to Rs 419 M after Rs 50 M was repaid in the quarter.
- The herd. 3,504 milking animals (3,456 in June) and 2,983 young animals being raised, valued at Rs 4.70 bn.
Valuation snapshot
At the 28 October close of Rs 31.40:
| Measure | Value |
|---|---|
| Earnings per share, last 12 months (October 2025 to September 2026) | about Rs 3.71 |
| Price to earnings | about 8.5 times |
| Book value per share | about Rs 31.7, so price to book of about 1.0 |
| Market value (218.6 million shares) | about Rs 6.9 bn |
| Share price, last 52 weeks | low Rs 23.54, high Rs 42.64 |
A large part of At-Tahur’s yearly profit comes from revaluing its herd rather than from cash earned: in the 2026 financial year the herd’s fair-value gain was Rs 1.30 bn, more than the year’s profit. That makes the price to earnings ratio less meaningful than for most companies, and is one reason the share trades at about its book value.
What to watch next
- Finance costs. Up 51%; whether borrowing comes down.
- Herd health. Livestock deaths and losses on sales, which rose this quarter.
- Milk output. The herd produced 4% less milk than a year ago, even with more milking animals.
- Cash flow. Operating cash flow was negative in the quarter and in the last financial year; the herd’s paper gains need to turn into cash.
- The October to December quarter. Historically much stronger, and the better test of the year.
The bottom line
At-Tahur grew sales and gross profit in its seasonally weakest quarter, but higher finance costs, selling expenses and livestock losses meant profit after tax fell by a quarter to Rs 32 M. The result is small in the context of a full year, and the next two quarters will matter more. The main things to watch are borrowing costs, herd losses and whether the business starts to generate cash.
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Bilal, Market Pulse Hub
Source: At-Tahur Limited, quarterly report for the quarter ended 30 September 2026 (directors’ report and unaudited unconsolidated condensed interim financial statements). Earlier quarters from company filings. Prices from the PSX data portal. Twelve-month, per-share and valuation figures are our calculations. This article is for education and information only and is not investment advice.