Lahore: Lalpir Limited, formerly known as Lalpir Power Limited, has returned to profitability during the half year ended June 30, 2026, posting a profit after tax of Rs149.93 million, compared with a loss of Rs694.82 million in the corresponding period last year.

The company disclosed its unaudited financial results to the Pakistan Stock Exchange following a meeting of its Board of Directors held on August 28, 2026. The board recommended no cash dividend, bonus shares, right shares or other entitlement for the period.

Investment gains drive earnings recovery

According to the financial statements, Lalpir recorded total revenue of Rs316.81 million during the first half of 2026, down from Rs505.35 million in the same period of 2025.

The major contributor to revenue was gain on sale of investments, which stood at Rs311.39 million, compared with Rs492.89 million a year earlier. Return on investments amounted to Rs327,000, while other income was recorded at Rs5.09 million.

Despite the lower revenue base, the company benefited from a significant reduction in expenses. Expenses declined to Rs235.42 million from Rs523.89 million in the corresponding period last year. Operating and administrative expenses were Rs22.27 million, while finance cost remained minimal at Rs157,000.

Profitability turns positive

The sharp improvement in expenses helped Lalpir move from a pre-tax loss to a substantial profit. The company reported profit before levy and taxation of Rs215.09 million, compared with a loss of Rs534.08 million in the same period of 2025.

After accounting for levy and taxation, profit after tax reached Rs149.93 million, marking a major turnaround from the Rs694.82 million loss reported a year earlier.

The improvement was also reflected in earnings per share. Basic and diluted EPS stood at Rs0.54, compared with a negative Rs1.83 per share in the first half of 2025.

Equity position strengthens

Lalpir’s total equity increased to approximately Rs11.69 billion as of June 30, 2026, compared with Rs11.54 billion at December 31, 2025.

The company’s unappropriated profit also increased during the period, supported by the half-year profit. The financial statements show unappropriated profit rising from Rs8.74 billion at the end of 2025 to approximately Rs8.90 billion by June 30, 2026.

Strong operating cash generation

The company’s cash-flow position also showed a notable improvement. Lalpir generated Rs4.00 billion in net cash from operating activities during the first half of 2026, compared with a net cash outflow of Rs646.20 million in the same period last year.

However, investing activities absorbed nearly Rs3.99 billion, primarily reflecting investment-related outflows. After financing activities, which recorded a net outflow of Rs617,000, the company’s cash and cash equivalents increased modestly to Rs27.85 million at June 30, 2026, from Rs21.07 million at the beginning of the period.

A significant turnaround

Lalpir Limited’s latest results mark a substantial improvement over the challenging performance recorded during the first half of 2025. The return to profitability, stronger operating cash generation and improvement in retained earnings indicate a meaningful recovery in the company’s financial position.

At the same time, the results show that investment-related gains remain an important component of the company’s earnings during the reported period. Investors will therefore be watching how the company’s income and investment portfolio perform in the remaining months of 2026.