Pakistan Hotels Developers Posts Rs30.5 Million Profit in FY2026 Despite Halt in Operations
Pakistan Hotels Developers Limited (PHDL) has reported a profit after taxation of Rs30.53 million for the financial year ended June 30, 2026, even as the company remains in the process of winding up its affairs.
The company’s audited financial statements show that PHDL generated no revenue from operations during FY2026. Instead, its financial performance was supported primarily by other income, including income earned on its bank balances. The financial statements identify the company as being under liquidation, with five liquidators overseeing the process. 284109
Profit supported by other income
According to the statement of profit or loss, PHDL recorded other income of approximately Rs82.88 million during the year. After administrative and general expenses of about Rs32.68 million and other charges, the company reported profit before taxation of Rs49.21 million.
After accounting for taxation of approximately Rs18.68 million, net profit stood at Rs30.53 million, compared with Rs42.08 million in the previous year. Earnings per share declined to Rs1.70 from Rs2.34. 284109
The detailed notes indicate that income from bank deposits was a major contributor to other income during the year. The company also reported gains and other receipts associated with its assets and financial position. 284109
Assets and cash position decline sharply
PHDL’s financial position changed considerably during FY2026. Total assets declined to approximately Rs534.23 million, compared with Rs1.42 billion a year earlier.
Cash and bank balances fell to around Rs163.03 million, down substantially from Rs1.06 billion at June 30, 2025. The reduction was largely connected with payments made during the year, including dividend and capital repayment distributions. 284109
The statement of cash flows shows that the company used approximately Rs81.33 million in operating activities and around Rs897.24 million in financing activities. Financing outflows included redemption of share capital and payment of dividends. As a result, cash and cash equivalents decreased by approximately Rs896.18 million during the year. 284109
Net assets fall as liquidation continues
The company’s net assets stood at approximately Rs523.67 million at June 30, 2026, compared with Rs1.393 billion a year earlier. The change reflects the substantial distributions and reductions in the company’s asset base during the liquidation process. 284109
The statement of changes in equity also shows a significant reduction in shareholders’ capital and accumulated reserves during the year, including a Rs180 million redemption of capital and distribution from the revenue reserve. 284109
Liquidation process remains the key development
The financial statements provide considerable detail about the company’s ongoing liquidation. The liquidators reported that an application for de-registration with the Sindh Revenue Board had been approved, subject to completion of the relevant process.
The report also notes that proceedings and applications concerning tax matters and the company’s winding-up process remain part of the overall process. In addition, the liquidators stated that an application relating to continuation of the liquidation process was pending before the relevant court. 284109 284109
The independent auditors highlighted the liquidation basis of accounting as an emphasis of matter, noting that the financial statements were not prepared on a going-concern basis because the company was undergoing liquidation. 284109
A company transitioning toward closure
PHDL’s FY2026 results present an unusual financial picture: the company reported a profit despite having no operating revenue, while its cash and net assets declined significantly as distributions and liquidation-related activities continued.
For investors and shareholders, the key development is therefore not traditional business growth but the progress of the liquidation and the eventual realization and distribution of the company’s remaining assets.
The audited accounts were authorized for issue on September 30, 2026, by the company’s liquidators. 284109
In summary, Pakistan Hotels Developers Limited closed FY2026 with Rs30.53 million in profit after tax, but the result came during a period of continued liquidation, declining assets and substantial cash distributions rather than from ongoing hotel operations.
