Dawood Lawrencepur Posts Rs4.96 Billion Consolidated Profit in First Half of 2026

Dawood Lawrencepur Limited (DLL) delivered a profitable performance during the six months ended June 30, 2026, with consolidated profit after tax reaching Rs4.96 billion, compared with Rs9.29 billion in the same period last year.

The company said the year-on-year decline was largely due to a one-off revaluation gain recorded on its investment in Engro Holdings in the corresponding period of 2025. Profit attributable to owners of the holding company stood at Rs4.58 billion, against Rs9.03 billion a year earlier.

Standalone performance remains positive

On a standalone basis, Dawood Lawrencepur reported profit after tax of approximately Rs3.46 billion for the six-month period, compared with Rs15.82 billion in the corresponding period of 2025.

The company reported a Rs2.10 billion return on investments, substantially higher than the Rs699 million recorded a year earlier. According to the directors’ report, the improvement was primarily linked to a larger investment portfolio following the merger.

The company also recognized income from the reversal of deferred tax previously recorded on its investment in Engro Holdings. Following a Sindh High Court decision concerning the applicable capital gains tax rate, DLL reversed Rs1.68 billion in deferred tax.

Earnings per share decline from last year’s exceptional gain

Dawood Lawrencepur’s unconsolidated earnings per share for the six-month period stood at Rs4.32, compared with Rs26.45 in the same period last year.

Meanwhile, consolidated earnings per share from continuing operations were Rs5.72, versus Rs15.22 a year earlier. The company attributed the weaker comparison largely to the exceptional revaluation gain recognized on its Engro Holdings investment in 2025.

The consolidated financial statements also show profit for the six-month period of around Rs4.96 billion, while total comprehensive income reached approximately Rs9.06 billion, helped by a Rs4.10 billion remeasurement gain on investments that is recorded outside profit or loss.

Dividend announced

Alongside its financial results, the company announced an interim cash dividend of Rs0.30 per share for the quarter ended June 30, 2026. This comes in addition to the interim cash dividend of Rs1.70 per share already paid.

Portfolio remains focused on resilient businesses

Dawood Lawrencepur said it continued to position its portfolio toward businesses with resilient and sustainable earnings profiles. Its directors’ report highlighted holdings and investments across sectors including banking, technology, energy and other businesses.

The company noted that the first half of 2026 remained challenging for Pakistan’s equity market, with the KSE-100 Index falling 14.5% in the first quarter before recovering strongly in the second quarter. Despite market volatility, DLL said several of its core holdings remained resilient.

The company also highlighted the performance of its energy-related investments. The 49.9MW Tenaga Generasi Limited wind power project continued to perform strongly, exceeding both availability and BOP loss targets during the review period. The plant achieved availability of 99.6% against a target of 99.4%.

TGL listing option under consideration

A notable development is the company’s decision to allow management to explore, and if considered appropriate, pursue the listing of Tenaga Generasi Limited (TGL) on the Pakistan Stock Exchange.

The proposed transaction would involve offering a portion of TGL shares while ensuring that Dawood Lawrencepur retains majority ownership. The company emphasized that the proposal remains subject to the required corporate and regulatory approvals.

Outlook remains cautiously optimistic

Looking ahead, Dawood Lawrencepur said Pakistan’s macroeconomic position has continued to improve, supported by stronger external buffers, easing inflation and greater macroeconomic stability.

However, the company expects market performance to remain sensitive to geopolitical developments, global oil prices, inflation, interest rates and Pakistan’s external account. It said its portfolio remains positioned to navigate these risks, while acknowledging that higher oil prices and geopolitical tensions could weigh on the broader investment environment.

Overall, Dawood Lawrencepur’s first-half results reflect a business continuing to generate substantial investment income despite a difficult year-on-year comparison created by the exceptional gain recorded in 2025. The company’s dividend announcement, portfolio strategy and potential TGL listing also provide investors with several developments to watch in the second half of 2026.