LSE Financial Services Reports Rs28.95 Million Loss for FY2026

LSE Financial Services Limited (LSEFSL) has reported a challenging financial performance for the year ended June 30, 2026, with the company posting a net loss of Rs28.95 million compared with a profit of Rs18.19 million in the previous year.

The company disclosed its financial results to the Pakistan Stock Exchange on October 2, 2026, following a meeting of its Board of Directors. The board also approved the disposal of LSEFSL’s 36% equity stake in Digital Custodian Company Limited, marking an important development in the company’s investment portfolio. 284244 284244

Revenue Declines While Expenses Rise

According to the financial statements, LSEFSL recorded net revenue of Rs29.65 million during FY2026, compared with Rs30.79 million a year earlier. At the same time, administrative and general expenses increased substantially to Rs73.72 million from Rs39.82 million.

As a result, the company recorded an operating loss of Rs44.07 million, compared with an operating loss of Rs9.03 million in FY2025.

Other income stood at Rs3.64 million, while the company received Rs3.40 million as its share of post-tax profits of associates. Finance costs also increased significantly to Rs4.08 million from just Rs0.22 million in the previous year.

Overall, LSEFSL reported a loss before taxation of Rs41.55 million and a net loss of Rs28.95 million for the year. Earnings per share consequently moved into negative territory at Rs0.98 per share, compared with positive earnings of Rs0.51 per share in FY2025. 284244

Comprehensive Loss Reaches Rs80.76 Million

The company’s financial position was further affected by other comprehensive losses. LSEFSL recorded a share of other comprehensive loss from associates of Rs60.96 million during FY2026, partially offset by a deferred tax impact of Rs9.14 million.

Consequently, total comprehensive loss for the year stood at Rs80.76 million, compared with comprehensive income of Rs21.08 million in the previous year. 284244

Assets and Equity Also Decline

LSEFSL’s total assets stood at Rs278.27 million at June 30, 2026, down from Rs489.18 million a year earlier. Investment in associates declined to Rs155.74 million from Rs384.78 million.

The company’s total equity also fell sharply, reaching Rs205.35 million compared with Rs456.98 million at the end of FY2025. Unappropriated profit moved into a deficit of Rs12.84 million, compared with retained profit of Rs65.95 million previously. 284244

Board Approves Disposal of 36% Digital Custodian Stake

One of the most significant announcements accompanying the results was the Board’s approval to dispose of LSEFSL’s entire 36% equity stake in Digital Custodian Company Limited.

The filing identifies this transaction as other price-sensitive information. However, the announcement does not disclose the proposed transaction value or the expected financial impact of the disposal. 284244

No Dividend Announced

For FY2026, the company announced no cash dividend, bonus shares or right shares. The filing also reported no other entitlement or corporate action. 284244

AGM Scheduled for October 28

LSEFSL has scheduled its Annual General Meeting for October 28, 2026, at 9:40 a.m. at the Auditorium of Exchange Plaza in Lahore.

The company’s share transfer books will remain closed from October 21 through October 28, 2026. Transfers received by the share registrar by the close of business on October 20 will be considered in time for determining entitlement to attend the AGM. 284244

Outlook

LSE Financial Services enters the new financial year with several challenges, including a significant decline in profitability, higher administrative expenses and a substantial comprehensive loss. At the same time, the planned disposal of its 36% holding in Digital Custodian Company Limited could reshape the company’s investment portfolio.

The full annual report for the year ended June 30, 2026, is expected to be transmitted through PUCARS and uploaded to the company’s website, providing shareholders with further details about the company’s financial performance and investment decisions. 284244

In summary, FY2026 was a difficult year for LSE Financial Services, with the company moving from profit to loss and recording a substantial comprehensive loss. Investors will likely pay close attention to the upcoming AGM and the implications of the proposed disposal of the Digital Custodian stake.