Pakistan State Oil Company Limited (PSX: PSO), the country’s largest fuel marketing company, announced its results for the first quarter of its 2027 financial year (July to September 2026) after a board meeting on 29 October 2026. The filing contains the financial statements only; the full quarterly report will follow, so the reasons behind some changes are not yet given. Figures below are for the company on its own (unconsolidated) unless marked as group figures.
The headline: a profit after tax of Rs 25.6 bn, or Rs 54.44 a share, up 172% from Rs 9.4 bn (Rs 20.00) a year earlier. Group profit for PSO’s shareholders, which includes its subsidiaries, was Rs 29.4 bn (Rs 62.66 a share) against Rs 10.5 bn. The board recommended no dividend.
The quarter in numbers
| Rs M | Jul to Sep 2026 | Jul to Sep 2025 | Change |
|---|---|---|---|
| Gross sales | 871,120 | 793,312 | +9.8% |
| Sales tax and freight margin | (24,979) | (56,126) | −55.5% |
| Net sales | 846,141 | 737,186 | +14.8% |
| Cost of products sold | (788,631) | (707,135) | +11.5% |
| Gross profit | 57,510 | 30,051 | +91.4% |
| Gross margin (on net sales) | 6.8% | 4.1% | |
| Other income | 4,318 | 4,556 | −5.2% |
| Distribution and marketing expenses | (6,327) | (4,895) | +29.3% |
| Administrative expenses | (1,699) | (1,533) | +10.8% |
| Other expenses | (6,468) | (1,577) | 4.1 times |
| Finance costs | (6,297) | (5,953) | +5.8% |
| Share of associates | 98 | (49) | |
| Profit before tax and minimum tax | 41,135 | 20,601 | +99.7% |
| Minimum tax differential and final taxes | (325) | (2,609) | |
| Taxation (37.4% of pre-tax profit against 47.8%) | (15,251) | (8,602) | +77.3% |
| Profit after tax | 25,560 | 9,390 | +172% |
| Earnings per share, Rs | 54.44 | 20.00 | +172% |
What drove the result
A much wider margin. Net sales rose 15%, but cost of products rose only 11.5%, so gross profit almost doubled to Rs 57.5 bn and the gross margin rose to 6.8% of net sales from 4.1%. For a fuel marketer, the margin moves with regulated margins, product prices and the value of stock held when prices change; the filing does not say which mattered most this time.
Much less sales tax. Sales tax deducted from gross sales fell to Rs 11.0 bn from Rs 43.0 bn, even though gross sales rose. That is why net sales grew faster than gross sales. The filing does not explain the change.
Costs rose, but far less than gross profit. Other expenses jumped to Rs 6.5 bn from Rs 1.6 bn, and distribution costs rose 29%. Finance costs were up only 6% despite borrowing of more than Rs 340 bn. Pre-tax profit doubled to Rs 41.1 bn.
Lower tax rate. Tax took 37% of pre-tax profit against 48% a year earlier, when a large minimum tax charge applied. That lifted the after-tax growth to 172%.
Cash and the balance sheet
- Much more stock. Stock in trade rose by Rs 131 bn in three months, to Rs 392 bn, largely funded by higher trade payables, which rose by Rs 112 bn to Rs 417 bn.
- Receivables still large. Trade debts were Rs 416 bn, about the same as in June, and other receivables Rs 180 bn. PSO’s receivables have for years included large amounts owed by state-owned power and gas companies, part of the energy sector’s circular debt.
- Borrowing down. Short-term borrowing fell to Rs 344 bn from Rs 384 bn as the company repaid Rs 42 bn. Operating cash flow was positive Rs 11.4 bn, against negative Rs 61.4 bn a year earlier. The Rs 26.5 bn of short-term investments held in June were used up.
- Equity rose to Rs 285.8 bn, or about Rs 609 a share.
Valuation snapshot
At the 28 October close of Rs 362.83:
| Measure | Value |
|---|---|
| Group earnings per share, last 12 months (October 2025 to September 2026) | about Rs 94.5 |
| Price to earnings | about 3.8 times |
| Book value per share (the company) | about Rs 609, so price to book of about 0.60 |
| Market value (469.5 million shares) | about Rs 170 bn |
| Share price, last 52 weeks | low Rs 328.69, high Rs 503.21 |
PSO’s quarterly profits swing a lot. Over the last five quarters group profit for shareholders ranged from a loss of Rs 13.9 bn in April to June 2026 to a profit of Rs 29.4 bn this quarter. Fuel marketers’ profits typically swing with oil prices and the exchange rate, which change the value of the stock they hold. That makes the 3.8 times earnings figure less reliable than it looks. The share trades at about 60% of book value and about 28% below its 52-week high.
What to watch next
- The full quarterly report. It should explain the margin gain, the fall in sales tax and the rise in other expenses.
- Inventory. The Rs 131 bn build-up in stock adds risk if fuel prices fall.
- Circular debt. Any settlement of receivables from state power and gas companies would free cash and reduce borrowing.
- Dividends. None this quarter despite the large profit.
The bottom line
PSO had a very strong quarter: gross profit almost doubled on a wider margin, borrowing fell and operating cash flow turned positive. Profit for the company nearly tripled to Rs 25.6 bn. But this is a business whose profits swing widely from quarter to quarter, and the filing does not yet explain what drove the margin, so this quarter is not a reliable guide to the year.
You can follow PSO’s price, Pulse Score, results calendar and off-market trades in the Market Pulse Hub dashboard under PSX.
Bilal, Market Pulse Hub
Source: Pakistan State Oil Company Limited, financial results for the quarter ended 30 September 2026 sent to the Pakistan Stock Exchange (unaudited unconsolidated and consolidated condensed interim financial statements and the board’s notice). 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.