LSE Financial Services Reports Rs1.96 Million Loss in First Quarter of FY2026-27

LSE Financial Services Limited has reported a net loss of Rs1.96 million for the first quarter ended September 30, 2026, showing a significant improvement compared with the corresponding period last year.

According to the financial results submitted to the Pakistan Stock Exchange (PSX), the company recorded a loss of Rs1.957 million during the July–September quarter, compared with a loss of Rs16.484 million in the same quarter of the previous year.

The company’s revenue increased to Rs7.709 million during the quarter, up from Rs7.262 million in the corresponding period last year, reflecting moderate growth in its income.

One of the key improvements came from administrative and general expenses, which declined substantially to Rs8.548 million from Rs26.663 million a year earlier. This reduction helped the company narrow its operating loss to Rs839,000, compared with an operating loss of Rs19.401 million in the same period last year.

However, the company’s financial performance faced pressure from higher finance costs, which increased to Rs1.601 million against Rs37,000 in the corresponding quarter. Other income also declined to Rs238,000 from Rs2.457 million, while the share of post-tax profits from associates fell to Rs506,000 from Rs2.189 million.

Consequently, the company’s loss before taxation stood at Rs1.810 million, compared with Rs16.484 million last year. After taxation of Rs147,000, the net loss amounted to Rs1.957 million. Earnings per share improved to a loss of Rs0.01, compared with a loss of Rs0.06 in the corresponding period.

Financial Position

As of September 30, 2026, LSE Financial Services reported total assets of Rs274.178 million, compared with Rs278.270 million at June 30, 2026.

The company’s total equity stood at Rs203.390 million, while current liabilities amounted to Rs56.966 million. Cash and bank balances were recorded at Rs1.266 million, compared with Rs2.511 million at the end of the previous financial year.

The company’s investment in associates increased slightly to Rs156.250 million from Rs155.743 million, while tax refunds due from the government rose to Rs51.876 million.

No Dividend Announced

The Board of Directors, in its meeting held on October 30, 2026, at the company’s registered office, did not recommend any cash dividend, bonus shares, right shares or other corporate entitlement for the first quarter ended September 30, 2026.

The company stated that its first quarterly report would be submitted separately through the Pakistan Unified Corporate Actions and Reporting System (PUCARS) within the prescribed timeframe.

Outlook

Although LSE Financial Services remained in a loss position during the first quarter, the substantial reduction in its net loss compared with the previous year reflects an improvement in its operating performance, particularly through lower administrative expenses.

Going forward, controlling finance costs, maintaining revenue growth and improving income from investments and associates will remain important factors for the company’s financial performance.