Lahore: Avanceon Limited has announced its financial results for the nine-month period ending September 30, 2026, showcasing a substantial rise in revenue despite facing escalating costs and operational challenges. The company's consolidated revenue increased by 60%, reaching Rs. 11.9 billion, compared to Rs. 7.4 billion in the same period last year. This growth is predominantly driven by strong performances in Pakistan, Qatar, and the UAE, although the market in KSA remains under pressure.
The consolidated gross margin saw a moderate move of 14%, amounting to Rs. 2.25 billion, up from Rs. 1.98 billion in the previous year. Notably, the UAE region experienced setbacks due to geopolitical instability, which resulted in project delays and cost escalations, particularly in government projects.
Administrative and selling expenses surged by 51% to Rs. 2.74 billion, influenced by inflationary pressures in the Middle East. Additional financial burdens were caused by increased exchange losses and Expected Credit Loss (ECL) provisions on trade debts, alongside the absence of exchange gains reported in the corresponding period last year. Consequently, the company declared an operating loss of Rs. 561 million compared to an operating profit of Rs. 210 million in the same period last year.
Finance costs at the group level climbed by 24% to Rs. 436 million. After accounting for a taxation impact of Rs. 88 million, the group reported a very large loss of Rs. 1.085 billion, a stark increase from the Rs. 149 million loss recorded in the comparable period of 2025.
According to information available from the Pakistan Stock Exchange (PSX), Avanceon Limited's standalone financials reveal a 73% increase in revenue to Rs. 3.142 billion. However, a moderate move in the earnings per share was observed, with Rs. 0.07 reported, down from Rs. 0.32 in the previous year.
The company is actively executing existing backlog orders and new purchase orders, with order generation in Pakistan reaching USD 30 million as of October 2026. The group-wide order intake stands at USD 66 million, indicating a promising pipeline that is expected to surpass the annual target for 2026.
Despite current challenges, the management remains optimistic about achieving a positive turnaround by the end of the year. It is anticipated that easing geopolitical tensions and strategic abatement initiatives will contribute to improved financial outcomes by the first quarter of 2027.