Arpak International Investments Limited has reported a significant financial turnaround for the year ended June 30, 2026, moving from a substantial loss in the previous year to a strong after-tax profit of Rs277.53 million.
According to the company’s financial results approved by its Board of Directors on October 2, 2026, Arpak recorded profit after taxation of Rs277.53 million, compared with a loss of Rs125.25 million in 2025. Earnings per share consequently improved to Rs69.38, compared with a loss per share of Rs31.31 in the preceding year. 284289
Major Improvement in Bottom-Line Performance
The company’s income stood at Rs11.54 million during 2026, slightly below Rs11.78 million recorded a year earlier. At the operating level, however, Arpak continued to face pressure, with operating expenses rising to Rs16.94 million and resulting in an operating loss of Rs5.40 million. 284289
The major improvement came from the company’s investment portfolio. Its share of loss from associated companies declined to Rs124.57 million, compared with Rs333.12 million in 2025. More importantly, the company recorded a Rs407.81 million reversal of impairment on investments in associated companies, compared with Rs211.77 million in the previous year. 284289
These developments helped Arpak post a profit before taxation of Rs277.82 million, compared with a pre-tax loss of Rs124.90 million in 2025. After taxation of Rs294,056, the company reported its Rs277.53 million net profit. 284289
Equity Position Strengthens
Arpak’s improved profitability also contributed to a stronger shareholders’ equity position. At June 30, 2026, shareholders’ equity stood at Rs449.55 million, compared with Rs266.66 million a year earlier.
The company’s long-term investments increased substantially to Rs419.36 million, from Rs230.77 million in 2025. The balance sheet also showed an investment in property, plant and equipment of Rs1.18 million and investment property of Rs8.43 million. 284289
Accumulated losses also narrowed considerably, falling from Rs460.93 million in 2025 to Rs189.77 million by June 30, 2026. 284289
Comprehensive Income Also Turns Positive
The company’s total comprehensive income reached Rs296.12 million during the year, compared with a comprehensive loss of Rs98.98 million in 2025.
Other comprehensive income included Rs19.21 million from the share of surplus arising from the revaluation of property, plant and equipment of associated companies, partially offset by a Rs619,682 share of other comprehensive loss from an associated company. 284289
Cash Flow Remains an Area to Watch
Despite the strong reported profit, Arpak’s operating cash flow remained negative. The company used Rs7.77 million in net cash for operating activities, although investing activities generated Rs7.43 million.
Cash and cash equivalents declined from Rs1.47 million at the beginning of the year to Rs1.12 million at June 30, 2026. The company also received Rs5.50 million in mark-up on a loan to an associated company and Rs3.13 million in principal repayment during the year. 284289
This highlights an important distinction between the company’s reported accounting profit and its underlying cash position, particularly because a significant portion of the year’s earnings was associated with the reversal of investment impairment.
Annual General Meeting Scheduled
Arpak International Investments has scheduled its Annual General Meeting for October 26, 2026, at 11:00 a.m. at King’s Arcade, 20-A, Markaz F-7, Islamabad.
The company’s share transfer books will remain closed from October 20 to October 26, 2026, inclusive. 284289
Conclusion
Arpak International Investments’ 2026 results represent a major improvement from the previous year’s performance. The company moved from a Rs125.25 million after-tax loss to a Rs277.53 million profit, while shareholders’ equity increased significantly and accumulated losses were substantially reduced.
However, the results also show that operating profitability and cash generation remain challenges. The large reversal of impairment on investments in associated companies was a key contributor to the year’s earnings, making the performance of those investments an important factor to watch going forward.
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