Altern Energy Limited (AEL) Returns to Profitability as Consolidated Earnings Improve

Altern Energy Limited has reported a consolidated profit of Rs46.63 million for the first quarter ended September 30, 2026, reversing a loss recorded during the same period last year, according to the company’s latest financial statements submitted to the Pakistan Stock Exchange (PSX).

The company and its subsidiaries recorded a loss of Rs55.41 million in the corresponding quarter of the previous year. The latest results represent an improvement of approximately Rs102.03 million, reflecting a stronger overall financial performance during the quarter.

Consolidated Results Show Significant Improvement

According to the financial statements, Altern Energy’s consolidated profit before income tax and final tax reached Rs106.59 million during the quarter, compared with Rs101.32 million in the same period last year.

After accounting for final tax and income tax, the company posted a consolidated profit of Rs46.63 million, against a loss of Rs55.41 million a year earlier. Earnings per share attributable to the parent company’s shareholders improved to Rs0.03 from a loss per share of Rs0.23.

The improvement in reported earnings came despite higher finance costs and administrative expenses, highlighting the importance of the company’s other income in supporting its quarterly results.

Other Income Supports Earnings

Altern Energy reported consolidated other income of Rs193.61 million for the quarter, slightly below Rs201.94 million in the corresponding period last year. Despite this decline, other income remained a significant contributor to the company’s financial performance.

Finance costs increased to Rs19.23 million from Rs4.97 million a year earlier. Administrative expenses also rose to Rs56.62 million from Rs43.22 million.

The company reported no revenue for the quarter, compared with Rs454.36 million in the same period last year. Its reported direct costs declined substantially, resulting in a gross loss of Rs11.18 million, compared with a gross loss of Rs51.16 million previously.

These figures indicate that the improvement in consolidated profitability was primarily supported by other income and lower direct costs rather than revenue growth.

Standalone Results Remain Under Pressure

While the consolidated results showed a return to profitability, Altern Energy’s standalone financial performance remained challenging.

The company reported a standalone loss of Rs34.50 million for the quarter, compared with a loss of Rs41.43 million in the same period last year. The loss per share improved to Rs0.09 from Rs0.11.

Standalone results showed no revenue during the quarter, while direct costs declined to Rs11.18 million from Rs61.38 million. Administrative expenses, however, increased to Rs25.13 million from Rs13.61 million.

Other income rose slightly to Rs2.44 million from Rs2.24 million, while finance costs fell sharply to Rs4,000 from Rs2.46 million.

The comparison between standalone and consolidated results suggests that the contribution of subsidiaries and group-level income was important in helping Altern Energy report an overall consolidated profit.

Cash Position and Financial Standing

Altern Energy’s consolidated cash flow statement showed net cash outflows from operating activities of Rs115.13 million during the quarter, substantially lower than the Rs569.34 million outflow recorded in the corresponding period last year.

Net cash inflows from investing activities amounted to Rs191.91 million, compared with Rs171.32 million a year earlier. These inflows included income from short-term investments and bank deposits.

As a result, the group recorded a net increase in cash and cash equivalents of Rs76.79 million during the quarter. Cash and cash equivalents stood at approximately Rs7.77 billion at September 30, 2026, compared with Rs8.14 billion at the end of the corresponding period last year.

The group’s cash position provides important context for assessing its financial standing, although operating cash outflows remain an area to monitor.

No Dividend or Bonus Shares Announced

The company’s board of directors, in a meeting held on October 26, 2026, considered the financial results for the quarter ended September 30, 2026.

According to the announcement, the board did not recommend any dividend, bonus shares or right shares.

Altern Energy stated that its quarterly report would be transmitted separately through the Pakistan Stock Exchange’s designated reporting system within the specified timeframe.

Outlook

Altern Energy’s latest consolidated results mark a notable turnaround from the loss reported in the previous year’s corresponding quarter. However, the absence of revenue during the period, higher finance costs and continued standalone losses remain important factors for investors to consider.

Future performance will depend on the sustainability of other income, the group’s ability to manage expenses and its progress in generating revenue. Investors will also be watching subsequent quarterly results for signs that the improvement in consolidated earnings can be maintained.