Pak Elektron Limited (PEL) has delivered a stronger financial performance during the first half of 2026, with the company’s profit after tax increasing to Rs2.62 billion, compared with Rs2.37 billion in the same period last year.

The company disclosed its financial results for the six months ended June 30, 2026, following a meeting of its Board of Directors on August 27. The board did not recommend any cash dividend, bonus shares or right shares for the period.

Revenue Shows Healthy Growth

PEL generated Rs56.99 billion in revenue from contracts with customers during the six-month period, up from Rs48.74 billion a year earlier. After sales tax, excise duty and discounts, net revenue stood at Rs42.32 billion, compared with Rs35.52 billion in the corresponding period of 2025.

The increase in revenue was accompanied by higher costs. Cost of sales rose to Rs31.84 billion from Rs25.92 billion, while gross profit reached Rs10.48 billion, compared with Rs9.60 billion last year.

Profit Continues to Move Higher

Despite higher operating expenses, PEL remained firmly profitable. Operating profit stood at Rs5.38 billion, compared with Rs5.50 billion in the first half of 2025.

After accounting for finance costs, the share of profit from an associate, levies and taxation, the company recorded Rs2.62 billion in profit after income taxes, up from Rs2.37 billion a year earlier.

The improvement also translated into higher earnings per share. Basic EPS increased to Rs2.84 from Rs2.66, giving shareholders a stronger earnings position compared with the same period last year.

Balance Sheet Remains Solid

PEL’s financial position also showed some notable changes by the end of June. Total assets stood at approximately Rs85.71 billion, compared with Rs87.41 billion at the end of December 2025.

On the liabilities side, total liabilities declined to Rs33.66 billion from Rs37.97 billion. Particularly notable was the reduction in short-term borrowings, which fell from Rs17.79 billion at the end of 2025 to Rs11.82 billion by June 30, 2026.

Meanwhile, shareholders’ equity increased to Rs52.06 billion, compared with Rs49.44 billion at the end of December.

Cash Flow Provides Another Positive Signal

One of the more encouraging aspects of the results was the company’s operating cash generation. PEL generated Rs7.79 billion in net cash from operating activities during the first half, a substantial improvement over Rs3.04 billion in the same period last year.

The company invested around Rs1.52 billion in property, plant and equipment, while financing activities used Rs6.17 billion, largely reflecting a reduction in short-term borrowings. As a result, cash and cash equivalents increased to Rs1.37 billion at June 30, compared with Rs1.14 billion at the beginning of the year.

No Dividend Declared

Despite the improvement in earnings, PEL’s board recommended no cash dividend, bonus shares or right shares for the half-year period. The company said its financial statements had been submitted along with the results, with the quarterly report to be transmitted separately through PUCARS.

A Positive First Half for PEL

Overall, PEL’s first-half results present a mixed but generally positive picture. The company managed to grow revenue and profit while substantially improving operating cash generation and reducing its short-term borrowing burden.

With earnings per share also moving higher, the results suggest that PEL maintained its profitability momentum during the first six months of 2026, even as operating and financing costs remained significant.

In simple terms, PEL entered the second half of the year with higher sales, stronger earnings and a healthier cash-flow position—although shareholders should note that no interim dividend was announced.