Kohinoor Energy Limited Reports Rs411.8 Million Profit After Tax for First Quarter

Kohinoor Energy Limited (KEL) has reported a significant increase in profitability for the first quarter ended September 30, 2026, with its profit after tax rising to Rs411.78 million compared with Rs139.51 million in the corresponding period last year. The company disclosed its financial results in a notice submitted to the Pakistan Stock Exchange (PSX) on October 22, 2026.

According to the company’s unaudited financial statements, earnings per share (EPS) increased to Rs2.43 from Rs0.82 in the same quarter of the previous year, reflecting a substantial improvement in reported earnings.

Revenue Surges During the Quarter

Kohinoor Energy recorded sales of approximately Rs4.47 billion during July–September 2026, compared with Rs798.47 million in the corresponding quarter of 2025.

The increase in revenue was accompanied by a rise in the cost of sales, which reached Rs3.92 billion against Rs575.70 million a year earlier. Despite higher costs, the company improved its gross profit to Rs549.38 million from Rs222.77 million.

The company’s operating profit also increased significantly, reaching Rs471.68 million compared with Rs152.27 million in the same period last year.

Profitability Shows Strong Improvement

Kohinoor Energy’s profit before taxation reached Rs411.83 million during the quarter, compared with Rs139.65 million in the corresponding period of the previous year. Finance costs increased to Rs61.71 million from Rs15.19 million, while administrative expenses rose to Rs77.70 million from Rs70.50 million.

After accounting for taxation, the company posted a profit after tax of Rs411.78 million. The previous year’s quarter included a final tax levy of Rs849,000, whereas no such levy was reported for the latest period.

The improvement in earnings highlights the company’s stronger reported financial performance during the quarter, although investors will need to consider operating conditions, expenses and cash flows when assessing its overall financial position.

Financial Position and Cash Flow

The company’s statement of financial position showed total assets of approximately Rs7.91 billion as of September 30, 2026, compared with Rs7.19 billion at June 30, 2026.

Unappropriated profit increased to Rs3.53 billion from Rs3.11 billion, supporting an increase in reported equity and reserves. However, short-term finances also rose to approximately Rs2.35 billion from Rs2.05 billion at the end of June.

Despite its higher reported quarterly profit, Kohinoor Energy recorded negative net cash flow from operating activities of approximately Rs700.17 million. This compares with positive operating cash flow of Rs353.26 million in the corresponding quarter of the previous year.

The difference between accounting profit and operating cash flow is an important consideration for investors. It indicates that the company’s strong reported earnings did not translate into positive operating cash flow during the quarter.

No Dividend Announced

In its financial results announcement, Kohinoor Energy stated that no cash dividend, bonus shares or right shares had been declared for the quarter ended September 30, 2026. The company also reported no other price-sensitive information in the notice.

Outlook for Investors

Kohinoor Energy’s first-quarter results show substantial growth in sales, operating profit, net profit and earnings per share compared with the same period last year. These improvements may attract the attention of investors monitoring companies listed on the Pakistan Stock Exchange.

However, the decline in operating cash flow and the increase in short-term financing remain important factors to watch. Investors should review subsequent quarterly results, cash-flow trends and the company’s operational performance before drawing conclusions about the sustainability of its earnings growth.