Pak Elektron Limited (PSX: PAEL), which makes home appliances such as air conditioners and refrigerators as well as transformers, switchgear and other power equipment, sent its results for the three and nine months to 30 September 2026 to the stock exchange on 29 October 2026. Its financial year runs to December. The filing contains the financial statements only; the full quarterly report will follow, so some changes are not explained yet.
The headline: a profit after tax of Rs 711 M, or Rs 0.77 a share, for July to September, up 4.3% from Rs 681 M (Rs 0.74) a year earlier. For the nine months, profit rose 9.2% to Rs 3.33 bn (Rs 3.61 a share against Rs 3.38). The board declared no dividend.
The quarter in numbers
| Rs M | Jul to Sep 2026 | Jul to Sep 2025 | Change |
|---|---|---|---|
| Revenue (before sales tax and discounts) | 15,757 | 14,565 | +8.2% |
| Net revenue | 12,094 | 11,272 | +7.3% |
| Cost of sales | (8,823) | (8,168) | +8.0% |
| Gross profit | 3,272 | 3,104 | +5.4% |
| Gross margin | 27.1% | 27.5% | |
| Selling and distribution expenses | (636) | (815) | −22.0% |
| Administrative expenses | (745) | (682) | +9.1% |
| Other income, other expenses and credit losses | (70) | (26) | |
| Operating profit | 1,821 | 1,581 | +15.2% |
| Finance cost | (607) | (516) | +17.7% |
| Profit before tax | 1,213 | 1,065 | +13.9% |
| Income tax (41.4% of pre-tax profit against 36.0%) | (502) | (384) | +30.8% |
| Profit after tax | 711 | 681 | +4.3% |
| Earnings per share, Rs | 0.77 | 0.74 | +4.1% |
What drove the result
Steady sales, slightly thinner margin. Net revenue rose 7% to Rs 12.1 bn and gross profit 5% to Rs 3.27 bn, with the gross margin a little lower at 27.1%. The filing does not split the sales between appliances and power equipment.
Selling costs fell. Selling and distribution expenses dropped 22% to Rs 636 M, while administrative expenses rose 9%. That lifted operating profit 15% to Rs 1.82 bn.
Finance cost and tax took most of the gain. Finance cost rose 18% to Rs 607 M, even though borrowing has come down this year, and the tax charge took 41% of pre-tax profit against 36% a year earlier. So a 14% rise in pre-tax profit became a 4% rise after tax.
The nine months
- Net revenue rose 16% to Rs 54.4 bn, but gross margin fell to 25.3% from 27.2%, so gross profit grew only 8%.
- Selling and administrative costs rose 18%, leaving operating profit almost flat at Rs 7.20 bn (+1.6%).
- A lower tax charge than last year lifted profit after tax 9% to Rs 3.33 bn.
A seasonal business
Pak Elektron’s strongest quarter is usually April to June, the peak season for air conditioners and refrigerators: profit was Rs 1.75 bn in that quarter this year and Rs 1.71 bn in 2025. July to September is normally much smaller, so the comparison with the same quarter last year matters more than the drop from the previous quarter.
Cash and the balance sheet
- Strong cash flow. Operating cash flow for the nine months was Rs 5.95 bn, against Rs 1.11 bn a year earlier, helped by lower stock (Rs 18.8 bn from Rs 20.8 bn in December) and steady receivables (Rs 19.1 bn).
- Debt down. Short-term borrowing fell to Rs 12.2 bn from Rs 17.8 bn in December. Long-term financing rose to Rs 4.8 bn plus Rs 2.7 bn due within a year, as the company borrowed Rs 3.3 bn long term and spent Rs 2.5 bn on plant and equipment.
- Equity rose to Rs 52.8 bn, about Rs 57 a share, including a Rs 7.0 bn revaluation reserve.
Valuation snapshot
At the 28 October close of Rs 32.82:
| Measure | Value |
|---|---|
| Earnings per share, last 12 months (October 2025 to September 2026) | about Rs 4.47 |
| Price to earnings | about 7.3 times |
| Book value per share | about Rs 57.1, so price to book of about 0.57 |
| Market value (923.6 million shares) | about Rs 30.3 bn |
| Share price, last 52 weeks | low Rs 32.05, high Rs 63.04 |
The share is close to its 52-week low and about 48% below its high. It trades at a little over half its book value and about 7 times earnings, even though profit is growing and borrowing is falling.
What to watch next
- Margins. The nine-month gross margin fell about 2 points; whether pricing keeps up with costs.
- Finance cost. It rose in the quarter despite lower short-term borrowing; the full report may show why.
- Tax rate. 41% this quarter against 36% a year ago.
- The October to December quarter. Last year it earned Rs 795 M.
The bottom line
Pak Elektron delivered a modest rise in quarterly profit and a 9% rise over nine months, with much better cash flow and lower short-term debt. Higher finance costs, a higher tax rate and thinner margins kept growth small. The share price has nearly halved over the year, leaving it at a deep discount to book value.
You can follow PAEL’s price, Pulse Score, results calendar and off-market trades in the Market Pulse Hub dashboard under PSX.
Bilal, Market Pulse Hub
Source: Pak Elektron Limited, financial results for the three and nine months ended 30 September 2026 sent to the Pakistan Stock Exchange (unaudited statements of profit or loss, financial position, changes in equity and cash flows). 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.