Pak Elektron Limited’s (PAEL) Earnings Surge in 2Q2025
Pak Elektron Limited (PAEL) has reported strong results for April–June 2025 (2Q2025). The company posted a profit of Rs 1.7 billion (EPS: Rs 1.85), which is 77% higher than last year and more than 2.5 times the previous quarter. The results were broadly in line with market expectations.
Key highlights
- Profit: Rs 1.7bn in 2Q2025 vs. Rs 970mn last year.
- Earnings Per Share (EPS): Rs 1.85 vs. Rs 1.05 last year.
- Net Sales: Rs 21.1bn, up 21% YoY and 45% QoQ.
- Gross Margins: Improved to 27.7% vs. 26.6% last year.
- Finance Cost: Fell 38% YoY, helped by lower interest rates.
- Tax Rate: Higher at 47% vs. 37% last year.
What drove the growth?
- Strong Appliance Sales:
- Higher demand for refrigerators and air conditioners during the summer season boosted sales.
- Appliance division remains PAEL’s core strength.
- Stable Currency:
- Helped keep import costs under control, which improved gross margins.
- Lower Finance Cost:
- Interest expenses dropped 38% YoY, giving a further boost to profits.
- Additional Boost from Transformers:
- Transformer sales added Rs 4.2bn in the first half of 2025.
First half 2025 (1H 2025) performance
- Profit: Rs 2.37bn, up 67% YoY.
- Sales: Rs 35.5bn, up 18% YoY, driven by appliances.
- Gross Margins: 26.9% vs. 26.8% last year (stable).
PAEL had a strong quarter, powered by seasonal demand for appliances, stable currency, and lower financing costs. Even though taxes were higher, profits surged, and the company is on track for continued growth.
With PAEL trading at a price-to-earnings ratio (P/E) of 8.2x (2025E) and 7.0x (2026F), it could be an attractive play for investors watching Pakistan’s consumer and industrial growth story.
Source: Topline Securities
⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →
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