·        Revenue increased by 7%YoY to PkR8.4bn from PkR7.9bn in SPLY, primarily due to 18%YoY surge offtakes. However, partially offset by a 10%YoY decline in retention prices during the quarter.

·        Gross margins declined moderately to 29.8% from 30.4% in SPLY, due to aforementioned reasons.

·        Finance cost fell by 57%YoY to PkR214mn, compared to PkR493mn in SPLY, driven by easing interest rates and a 24%YoY reduction in outstanding debt.

·        Other income inclined by 74%YoY to PkR91mn compared to PkR53mn during SPLY, driven by 5x YoY increase in cash & short-term investments

·        Sequentially, profitability inclined 13%QoQ, driven by i) improvement in gross margins, and ii) 3%QoQ increase in offtakes.

·        We maintain a ‘Buy’ stance on PIOC with a Jun’26 DCF target price of PkR345.5/sh, providing a total return of 31%. Our bullish view is underpinned by i) the company’s robust deleveraging (D/E down to 0.14x from 0.6x in Mar’23), ii) improving utilization outlook (FY26E: 45%), and iii) increasing gross margins amid an efficient power mix.

https://research.akdsl.com/638972679693048874.pdf

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