Pak Elektron seen posting Rs1.2 EPS for 2QCY25
Pak Elektron is forecast to post Rs1.2 EPS in 2QCY25 on stronger appliance sales, lower finance costs, and initial US transformer exports
Staff Report
Outlook hinges on appliances recovery and lower finance costs. Pak Elektron Limited (PAEL) is expected to report net profit of roughly Rs1.1 billion for the quarter ended June 30, 2025, translating to an EPS of Rs1.2, according to a preview from Abdul Hadi, research analyst at Sherman Securities.
Currency Converter
The estimate implies a year-on-year rise from Rs971 million (EPS Rs1.1), driven by stronger volumes in refrigerators and deep freezers, alongside a sharp decline in finance costs following recent interest-rate cuts.
The broker expects refrigeration volumes to grow about 14% year-on-year and deep freezers by roughly 64%, while air-conditioner sales likely remain flat. On a sequential basis, earnings are seen rebounding by about 75% on seasonal strength in appliances and normalized effective taxation.
Revenue and margin projections
The house forecasts net revenue of approximately Rs18.1 billion for 2QCY25, up about 4% from the same quarter last year, with appliances leading the recovery and the power division softer amid slower order intake. Gross margin is projected to improve to about 28%, supported by price adjustments in air conditioners and refrigerators, and by lower input and financing costs.
US transformer exports begin to add
Management’s expansion into transformer exports to the United States began in March 2025, as disclosed in a filing to the Pakistan Stock Exchange and reported by local media. The first consignment sailed on March 13, 2025, marking a milestone in the company’s overseas push.
The preview estimates second-quarter transformer exports at roughly Rs1.2 billion, with expectations of more than Rs4 billion in export sales in the subsequent quarter as orders ramp. Looking ahead, company officials have publicly targeted export revenue of about $100 million by end-2026, citing rising US demand and tariff headwinds for Chinese and Indian suppliers.
What is next? The Pakistan Stock Exchange’s company page shows regular quarterly disclosures for PAEL; investors will look for the board meeting notice and the half-year accounts to confirm the second-quarter print and guidance.
Price action and calendar
PAEL shares have traded in the low-to-mid Rs40s in recent sessions on the PSX as investors position for the result. Third-party trackers indicate an early-September reporting window; official notices will confirm the exact date.
Key risks flagged include import restrictions affecting components, delays in multilateral funding for the power sector, and a reversal in interest-rate trends that could raise finance costs again.
Bottom line
If confirmed, a 2QCY25 EPS of Rs1.2 would underline Pak Elektron’s appliances-led recovery and the early contribution from US transformer exports—two pillars that the company and analysts say could support growth into 2H 2025 and toward the $100 million export target in 2026.Pakistan Stock Market Hits Historic High as Investor Optimism Grows
