Pakistan Engineering Company Limited (PECO) has reported its audited financial results for the year ended June 30, 2026, showing a reduction in its annual loss compared with the previous financial year. The company’s financial statements also highlight ongoing efforts by management to address legacy matters, improve operational stability and strengthen internal controls. 284279

According to the company’s statement of profit and loss, PECO recorded a loss after taxation of Rs 32.134 million for FY2026, compared with a loss of Rs 63.807 million in FY2025. The loss per share also improved to Rs 5.65, compared with Rs 11.21 a year earlier. 284279

Operating Position Remains Challenging

The financial statements show that PECO continued to face significant operational challenges during the year. Operating costs amounted to approximately Rs 62.617 million, while other operating income stood at Rs 28.699 million. The company consequently reported an operating loss of around Rs 33.918 million.

Despite the continued loss-making position, the reduction in the overall deficit compared with the previous year indicates an improvement in the company’s financial performance. Finance costs were also relatively limited at approximately Rs 9,000, compared with Rs 58,000 in the preceding year. 284279

Strong Asset Base

PECO’s statement of financial position shows total assets of approximately Rs 39.566 billion as of June 30, 2026, slightly lower than Rs 39.605 billion recorded a year earlier.

The company’s property, plant and equipment remained its largest asset category, valued at approximately Rs 39.028 billion. PECO also reported freehold land held for sale worth approximately Rs 314.724 million. 284279

On the liabilities side, total current liabilities stood at around Rs 753.660 million, including trade and other payables, short-term secured borrowing and accrued mark-up. The company also reported liabilities directly associated with freehold land held for sale amounting to approximately Rs 1.791 billion. 284279

Management Continues to Address Legacy Issues

In its announcement, PECO said that management continues to address certain legacy matters and operational constraints originating from previous periods. The company said these efforts are aimed at restoring operational stability, strengthening internal controls and maintaining compliance with applicable legal, regulatory and governance requirements. 284279

The external auditors, Malik Haroon Ahmad & Co., Chartered Accountants, expressed a disclaimer of opinion on the financial statements, with details contained in the external auditors’ reports accompanying the results. 284279

Cash Position

PECO’s cash flow statement indicates that the company used approximately Rs 13.629 million in operating activities during FY2026. At the same time, it generated around Rs 13.602 million from investing activities, mainly reflecting proceeds from the disposal of property, plant and equipment.

Cash and cash equivalents stood at approximately Rs 7.340 million at the end of FY2026, compared with Rs 7.367 million at the end of FY2025. 284279

No Dividend or Bonus Shares

For the year ended June 30, 2026, the company announced no cash dividend, bonus shares, right shares or other corporate entitlement. 284279

PECO has also scheduled its Annual General Meeting for October 28, 2026, at Hotel Four Points by Sheraton in Lahore. The company said its share transfer books will remain closed from October 22 to October 28, 2026, inclusive, for determining shareholders entitled to attend and vote at the meeting. 284279

Outlook

PECO’s FY2026 results present a mixed picture. While the company remains in a loss-making position and continues to face operational and legacy challenges, the significant reduction in annual losses compared with FY2025 represents a notable improvement.

The company’s substantial asset base, together with management’s stated focus on operational stability, internal controls and regulatory compliance, will remain important factors as PECO works toward improving its financial and operational position.

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