KARACHI: Pak-Gulf Leasing Company Limited (PGL) reported a net profit after tax of Rs54.15 million for the nine months ended March 31, 2026, reflecting resilience despite a decline in revenue during the period.

According to the company’s condensed interim financial statements, total revenue stood at Rs106.64 million, compared to Rs172.88 million in the corresponding period last year. Management attributed the decline primarily to reduced financing activity over the past three years, driven by elevated KIBOR levels and subdued industrial demand, which affected the company’s core leasing business.

Profit before taxation declined to Rs56.57 million from Rs87.45 million a year earlier. After accounting for taxation, net profit came in at Rs54.15 million, compared with Rs60.96 million in the same period of FY2025. Earnings per share (EPS) also eased to Rs1.09, down from Rs1.23 last year.

Despite lower revenue, Pak-Gulf Leasing managed to reduce its finance costs significantly to Rs6.41 million from Rs32.84 million, supported by lower utilization of borrowing facilities. However, administrative and operating expenses increased modestly to Rs47.35 million from Rs43.73 million during the period.

The company also recorded a provision of Rs0.75 million for potential lease and loan losses under IFRS 9 while recognizing a provision of Rs0.57 million for lease receivables currently under litigation. On a positive note, it recovered Rs5 million through court proceedings related to a diminishing Musharakah facility extended to M/s Muhandaseen (Pvt.) Limited.

Pak-Gulf Leasing’s financial position remained solid, with total equity increasing to Rs845.14 million as of March 31, 2026, compared to Rs790.96 million at the beginning of the financial year. Total assets stood at Rs1.41 billion, while cash and bank balances amounted to Rs132.30 million.

During the review period, the company maintained strong capital adequacy, with shareholders’ equity exceeding the minimum regulatory requirement for non-banking finance companies. Management noted that shareholder equity stood at Rs748.42 million, comfortably above the required threshold of Rs500 million.

The Board also highlighted that VIS Credit Rating Company Limited reaffirmed the company’s long-term rating at ‘A-‘ and short-term rating at ‘A-2’ with a Stable Outlook in December 2024, reflecting confidence in its financial profile.

Looking ahead, the management expressed optimism about strengthening its marketing initiatives and continuing to deliver quality leasing services despite challenging market conditions. The company also thanked shareholders, customers, regulators, and banking partners for their continued support and reaffirmed its commitment to sustainable growth in Pakistan’s leasing sector.