Karachi: In a remarkable financial turnaround, Pace (Pakistan) Limited has reported a Profit After Tax of Rs. 1,340.09 million for the fiscal year ended June 30, 2026, marking a significant improvement from the loss of Rs. 87.32 million recorded in the previous year. The company's financial results, released in its annual report dated October 6, 2026, reflect strategic cost management and strong operational performance despite a challenging real estate sector.
The company, which is part of the designated market category of the real estate sector, reported a revenue of Rs. 792.17 million for the year ended June 2026, down from Rs. 1,166.88 million in the previous year. Despite the decline in revenue, the gross profit improved to Rs. 483.17 million from Rs. 464.50 million, primarily due to a sharp reduction in the cost of revenue to Rs. 308.99 million from Rs. 702.37 million.
Administrative and selling expenses were reduced to Rs. 233.33 million from Rs. 305.44 million, demonstrating continued cost discipline across the company's operations. A notable contributor to the financial turnaround was the significant rise in other income, which surged to Rs. 1,222.69 million from Rs. 50.76 million the previous year. This increase was primarily driven by gains recognized on the disposal of investments in subsidiaries.
According to information available from the Pakistan Stock Exchange (PSX), the KSE-100 Index recorded a return of 43.52% during FY2025-26, underscoring a strong performance in the broader market. The company's finance costs were reduced to Rs. 139.43 million from Rs. 188.72 million, reflecting ongoing efforts in debt management and deleveraging. An exchange gain of Rs. 98.21 million was recognized on the company's outstanding Foreign Currency Convertible Bonds, aided by the appreciation of the Pakistani Rupee against the US Dollar.
The enhancement in profitability also impacted the company's equity position, which turned positive at Rs. 1,721.38 million as of June 30, 2026, compared to a negative equity of Rs. 1,212.25 million the previous year. Total assets increased to Rs. 11.19 billion from Rs. 7.52 billion, with notable increases in investment property and stock-in-trade.
Despite the positive financial performance, the company continues to face substantial current liabilities totaling Rs. 9.16 billion, including a current maturity of long-term liabilities amounting to Rs. 5.39 billion. Management remains focused on settlement, restructuring, and monetization initiatives to address these obligations as they fall due.