Dawood Equities Limited (DEL) has reported a significant improvement in its financial performance for the year ended June 30, 2026, with annual profit rising to Rs81.12 million, compared with Rs50.57 million in the previous financial year.
According to the financial statements, the company’s operating revenue increased substantially to Rs360.18 million in FY2026 from Rs232.29 million a year earlier. After commissions to agents and dealers, the company recorded net operating revenue of approximately Rs193.81 million, compared with Rs133.74 million in FY2025. 283793
Profitability improves sharply
Dawood Equities also benefited from gains on its investment portfolio. The company reported a net capital gain of Rs15.77 million on the disposal of short-term investments, while net unrealised gains on investments measured at fair value through profit or loss stood at Rs13.53 million.
After administrative expenses, expected credit-loss provisions and financial charges, profit before taxation reached Rs112.43 million, up considerably from Rs70.59 million in FY2025.
Following taxation of Rs31.31 million, profit for the year stood at Rs81.12 million, representing an increase of roughly 60% year-on-year. Earnings per share also improved to Rs2.95, compared with Rs1.84 in the previous year. 283793
Assets and shareholders’ equity expand
The company’s financial position also strengthened during the year. Total assets increased to approximately Rs992.80 million as of June 30, 2026, compared with Rs794.23 million a year earlier.
Short-term investments stood at Rs190.39 million, while trade debts rose to approximately Rs389.09 million. Receivables against margin finance increased to Rs44.97 million, and advances, deposits and prepayments reached Rs262.38 million.
Shareholders’ equity increased from Rs370.59 million to Rs500.71 million, supported by both the year’s profit and unrealised gains on investments. The company reported an unrealised gain of Rs49.00 million through other comprehensive income during FY2026. 283793
Cash flow remains an area to watch
Despite the improvement in profitability, the cash-flow statement shows that the company experienced a net cash outflow from operating activities of Rs35.17 million during FY2026.
The movement was largely associated with increases in trade debts, receivables against margin finance and other working-capital items. On the other hand, investing activities generated Rs8.93 million during the year.
After financing-related lease payments, cash and cash equivalents declined by Rs29.10 million, leaving the company with negative cash and cash equivalents of approximately Rs121.36 million, compared with negative Rs92.26 million at June 30, 2025. 283793
No dividend or bonus announced
In its September 29, 2026 communication to the Pakistan Stock Exchange, Dawood Equities stated that its board had recommended no cash dividend, no bonus issue and no right shares for the year ended June 30, 2026. 283793
The company has scheduled its Annual General Meeting for October 27, 2026, in Karachi. Its share transfer books are scheduled to remain closed from October 20 to October 27, 2026.
Overall, Dawood Equities entered FY2026 with a stronger earnings profile, higher revenue and a substantially improved equity base. The sharp rise in profit and earnings per share highlights stronger financial performance, while the negative operating cash flow and increased working-capital requirements remain important factors for investors to monitor.
