Pak Elektron Limited: performance and outlook

Pak Elektron Limited (PSX: PAEL) reported net sales of Rs42,321.34 million for the first half of CY26, a rise of 19.14 percent year-on-year, according to Business Recorder. Net profit rose 10.51 percent to Rs2618.907 million, which produced EPS of Rs2.84 and a net profit margin of 6.19 percent. The growth came as local and export sales both recovered, with transformer exports to the US market providing notable support.

Costs moved faster than revenue, as cost of sales rose 22.88 percent and gross margin eased to 24.75 percent from 27 percent a year earlier. Distribution expense jumped 33.17 percent, which the company linked to strong sales volumes and higher fuel prices tied to the Middle Eastern crisis. Operating profit fell 7.89 percent, pulling the operating margin down to 12.70 percent from 16.43 percent, while other expense rose sharply.

For calendar 2025, net sales reached Rs63,523.51 million, up 19.60 percent, and net profit rose 62.51 percent to Rs3846.675 million, giving EPS of Rs4.24. The company is also investing in energy efficient appliances, executing a tamper-proof metering system in its power division, and expanding partnerships with Panasonic and Electrolux AB. The report also points to a continued focus on export sales.