Zuma Resources Limited Returns to Profit with Rs151.45 Million Earnings in FY2026

Zuma Resources Limited has reported a significant financial turnaround for the fiscal year ended June 30, 2026, posting a net profit of Rs151.45 million compared with a net loss of Rs2.44 million in the previous financial year. The company announced its audited financial results following a Board of Directors meeting held on October 2, 2026.

According to the financial statements submitted to the Pakistan Stock Exchange (PSX), the company recorded sales of Rs171.38 million during FY2026, compared with no sales reported in the preceding year. The results mark a notable improvement in its reported financial performance.

Strong Profitability in FY2026

Zuma Resources reported a gross profit of Rs166.88 million for the year, reflecting reported sales of Rs171.38 million against a cost of revenue of Rs4.50 million.

Administrative expenses stood at Rs11.97 million, while finance costs amounted to Rs37.91 million. The company also recorded other income of Rs37.34 million and other operating expenses of Rs1.18 million.

As a result, profit before levies and taxation reached Rs153.16 million. After accounting for levies of Rs1.71 million, profit before taxation stood at Rs151.45 million. No taxation expense was reported in the income statement.

Earnings per share (EPS), adjusted retrospectively for the company’s 1-for-5 share split, improved to Rs2.15 from a loss of Rs0.03 per share in FY2025.

Equity Position Improves

The company’s accumulated losses of Rs149.80 million at June 30, 2025, turned into accumulated profits of Rs1.65 million by June 30, 2026.

Total equity and the balance reported for the loan from directors reached Rs156.12 million at the end of the financial year, compared with a negative balance of Rs8.80 million in the previous year.

Zuma Resources’ total assets increased to Rs769.40 million from Rs601.66 million a year earlier. The balance sheet included a non-current asset held for sale valued at Rs600 million, trade debts of Rs159.60 million and cash and bank balances of Rs8.64 million.

Long-term secured bank financing stood at Rs114.38 million, while its current portion amounted to Rs75.51 million. Deferred liabilities were reported at Rs404.88 million.

Cash Flow and Financial Position

The cash flow statement showed net cash used in operating activities of Rs4.59 million before finance costs and tax payments, with the reported net cash used after those payments reaching Rs4.74 million.

Investing activities generated net cash of Rs57.48 million, primarily reflecting an advance against the sale of an asset. Financing activities used net cash of Rs44.94 million, including repayment of long-term loans.

Consequently, cash and cash equivalents increased to Rs8.64 million at June 30, 2026, from Rs836,533 at the end of the previous financial year.

No Dividend Announced

Despite the return to profitability, the board did not recommend a cash dividend, bonus shares or right shares for the year ended June 30, 2026. The company also reported no other price-sensitive information in its announcement.

The absence of a dividend means shareholders should distinguish the company’s improved reported earnings from any immediate cash distribution.

Annual General Meeting Scheduled for October 28

Zuma Resources Limited will hold its Annual General Meeting (AGM) on Wednesday, October 28, 2026, at 5:00 PM at its registered office on the fourth floor, Building 90/50-B, Broadway Commercial, DHA Phase 8, Lahore.

The company’s share transfer books will remain closed from October 22 to October 28, 2026, inclusive. The annual report is expected to be transmitted through the Pakistan Unified Corporate Actions and Reporting System (PUCARS) before the AGM.

Outlook

Zuma Resources Limited’s FY2026 results highlight a substantial improvement in reported profitability, a return to positive accumulated earnings and an increase in total assets. However, the company’s financial position also includes significant deferred liabilities, bank financing and trade debts, which remain important considerations when assessing its overall performance.

Investors will be watching the company’s upcoming AGM and future financial disclosures for further information about its operations, asset-sale plans and financial strategy.