Pakgen Limited Reports Sharp Improvement in Half-Year Loss

LAHORE: Pakgen Limited, formerly known as Pakgen Power Limited, has reported a significant reduction in its net loss for the half year ended June 30, 2026, with the company’s financial performance showing improvement compared with the same period last year.

According to the company’s unaudited financial statements, Pakgen recorded a loss after tax of Rs88.21 million during the first half of 2026, compared with a loss of Rs412.12 million in the corresponding period of 2025. The company’s loss per share also improved to Rs0.46, against a loss per share of Rs1.11 a year earlier.

The improvement came despite a decline in the company’s overall income. Revenue and other income for the six-month period stood at approximately Rs405.64 million, down from Rs756.28 million in the same period last year.

The company reported a Rs397.38 million gain on sale of investments, compared with Rs715.04 million previously. Return on investments also fell sharply to Rs0.44 million from Rs18.14 million, while other income declined to Rs7.83 million from Rs23.10 million.

Pakgen also recorded an unrealised gain of Rs25.70 million from the remeasurement of short-term investments, compared with Rs37.90 million a year earlier. However, this was partly offset by a Rs180.64 million loss arising from the recognition of an investment at fair value through other comprehensive income.

Operating Profit Declines

The company’s profit from operations fell considerably during the period, reaching Rs203.17 million, compared with Rs794.18 million in the first half of 2025.

Pakgen also reported a Rs223.60 million loss from discontinued operations, compared with a much larger loss of Rs973.90 million in the previous corresponding period.

As a result, the company’s loss before taxation narrowed to Rs21.63 million, compared with Rs214.88 million last year.

After accounting for taxation of Rs66.58 million, Pakgen posted a net loss of Rs88.21 million.

Second Quarter Shows Return to Profit

A notable development came in the second quarter of 2026. Pakgen recorded a profit after tax of Rs12.13 million, compared with a substantial loss of Rs442.53 million in the second quarter of 2025.

This quarterly turnaround indicates that the company’s financial position improved considerably during the three months ended June 30, although the six-month result remained in the red.

Strong Operating Cash Generation

The company’s cash flow statement also showed a major improvement in cash generated from operations.

Pakgen generated Rs7.23 billion in net cash from operating activities during the first half of 2026, compared with Rs1.02 billion in the same period last year.

However, investment activity resulted in a net cash outflow of Rs6.05 billion, primarily reflecting long-term investments of around Rs6.06 billion. Financing activities also consumed approximately Rs1.18 billion, including payments related to ordinary shares bought back.

After these movements, cash and cash equivalents stood at Rs17.63 million at June 30, 2026, compared with Rs440.11 million at the end of June 2025.

No Dividend Announced

The company’s Board of Directors, which met on August 28, 2026, recommended no cash dividend, bonus shares or right shares for the period. The board also reported no other price-sensitive information.

Overall, Pakgen’s first-half results present a mixed picture: the company remained loss-making, but its net loss narrowed substantially and the second quarter moved back into profit. The sharp improvement in discontinued operations and stronger operating cash generation were key positives, while lower investment gains and a decline in operating profit remained areas of pressure.

The company’s financial statements were issued as unaudited interim results for the half year ended June 30, 2026.