Zarea Limited has reported a significant increase in revenue and gross profit for the period ended September 30, 2026, reflecting strong growth in its business operations. However, the company’s overall net profit recorded a modest improvement compared with the corresponding period last year.

According to the company’s latest financial statements submitted to the Pakistan Stock Exchange (PSX), Zarea Limited reported consolidated revenue of approximately Rs1.21 billion for the period ended September 30, 2026, compared with Rs783.59 million in the corresponding period of 2025. This represents an increase of approximately 54.3%.

The company’s gross profit also witnessed substantial growth, reaching Rs580.28 million against Rs230.32 million last year, indicating a significant improvement in its gross profitability.

Despite the strong growth in revenue and gross profit, Zarea Limited’s profit before taxation stood at Rs577.55 million, compared with Rs558.18 million in the corresponding period of the previous year. Similarly, net profit reached Rs577.55 million, up from Rs558.18 million.

The company’s earnings per share (EPS) improved to Rs2.20 from Rs2.13 in the corresponding period last year, reflecting a modest increase in shareholder earnings.

Financial Performance and Key Highlights

The financial statements show that Zarea Limited generated other income of approximately Rs86.09 million during the period, compared with Rs401.60 million in the previous corresponding period. Meanwhile, selling and distribution expenses declined to Rs37.89 million from Rs43.98 million, while administrative and general expenses increased to Rs39.84 million from Rs28.15 million.

Finance costs increased to approximately Rs11.09 million compared with Rs1.61 million in the corresponding period last year.

The company’s consolidated balance sheet also reflected total assets of approximately Rs4.32 billion as of September 30, 2026, compared with Rs4.79 billion at June 30, 2026.

Cash Flow Position

Zarea Limited reported net cash generated from operating activities of approximately Rs825.04 million, compared with Rs70.59 million in the corresponding period last year. This indicates a substantial improvement in cash generation from operating activities.

However, the company recorded net cash outflows from financing activities of approximately Rs1.06 billion, primarily reflecting the redemption of Sukuk amounting to Rs1.05 billion.

Cash and cash equivalents stood at approximately Rs123.54 million at the end of the reporting period, compared with Rs356.84 million at June 30, 2026.

Outlook

Zarea Limited’s latest financial results highlight strong growth in revenue and gross profit, alongside improved earnings per share and operating cash generation. The increase in business revenue demonstrates the company’s ability to expand its operations during the reported period.

Going forward, the company’s ability to sustain revenue growth, manage operating expenses, maintain profitability and strengthen its cash position will remain important factors for investors.

Overall, Zarea Limited’s September 2026 financial performance reflects encouraging growth in its core business indicators, although its modest net profit improvement and lower cash balance will remain areas of interest for shareholders and market participants.