KARACHI: Zarea Limited (PSX: ZAL) delivered a strong financial performance for the nine months ended March 31, 2026, reporting a substantial increase in revenue and profitability, reflecting the company’s continued business expansion and operational momentum.
According to the company’s condensed interim financial statements, revenue climbed to Rs2.108 billion, compared with Rs805.4 million in the corresponding period last year, representing an increase of more than 161%. The significant growth in sales helped lift the company’s gross profit to Rs585.4 million, up from Rs369.3 million a year earlier.
Zarea posted a net profit after tax of Rs847.2 million for the nine-month period, compared with Rs453.5 million during the same period last year, marking an impressive 87% year-on-year increase. Consequently, earnings per share (EPS) improved to Rs3.22, up from Rs1.73 in the previous year’s corresponding period.
The company’s earnings were supported not only by higher revenues but also by a sharp rise in other income, which reached Rs513.9 million. However, finance costs increased to Rs26.1 million, while administrative and selling expenses also rose as business activity expanded.
On the balance sheet, Zarea continued to strengthen its asset base. Total assets increased to approximately Rs4.29 billion as of March 31, 2026, compared with Rs2.41 billion at the end of June 2025. The company also reported significant growth in short-term investments, property and equipment, and intangible assets, highlighting ongoing investment in its operations and future growth initiatives.
Shareholders’ equity rose to Rs2.86 billion, reflecting the robust profitability achieved during the period. Meanwhile, cash generated from operating activities more than doubled to Rs1.07 billion, indicating strong underlying cash generation despite higher investment spending during the period.
The Board of Directors announced no cash dividend, bonus shares, right shares, or any other corporate action alongside the financial results for the period.
Overall, Zarea Limited’s latest financial performance underscores the company’s rapid growth trajectory, driven by higher revenues, improved profitability, and a stronger financial position, while continued investments suggest management remains focused on supporting future expansion.
