Every listed company on the Pakistan Stock Exchange must publish its results every quarter. These announcements move prices, sometimes sharply. You do not need to be an accountant to understand them. A handful of numbers tell you most of what you need: is the company selling more, is it making more profit, how much is it paying out, and is the share price reasonable for those profits?
Where to find results
- PSX announcements: on the PSX data portal, each company page has an "Announcements" section, and the exchange publishes all financial results as they arrive. Results usually come as a short notice from the board, followed by the full report.
- Company websites: the "Investor relations" section has full quarterly and annual reports.
- Results season: most companies report soon after each quarter ends. In October 2026, for example, oil and gas companies report for the quarter ended September (Q1 of their July-June year), and banks report for the nine months to September.
What a results announcement contains
A typical PSX financial results notice includes:
- The period covered (for example, "quarter ended 30 September 2026") and whether figures are standalone or consolidated (including subsidiaries).
- A short profit and loss statement: revenue or sales, costs, operating profit, finance cost, profit before tax, tax, and profit after tax.
- Earnings per share (EPS).
- Any dividend, bonus or rights issue declared, with the book closure dates.
- Comparison with the same period last year.
Always compare with the same period last year, not just the previous quarter. Many PSX businesses are seasonal: fertiliser, cement and textiles all have strong and weak quarters.
The key numbers
Revenue (sales)
Revenue is the money the company earned from selling its products or services. For banks, look at net interest income and total income instead of "sales".
Growing revenue is a good start, but in Pakistan, check whether growth is just inflation. If prices rose 11% and revenue rose 8%, the company actually sold less.
Profit after tax (PAT)
Also called net profit or net income. This is what is left for shareholders after all costs, interest and taxes. It is the most watched number in any announcement.
Look for one-off items. A big gain from selling land, or an exchange gain from the rupee moving, can inflate profit for one quarter. The notes or the directors' report usually explain unusual items.
Earnings per share (EPS)
EPS = profit after tax ÷ number of shares
It tells you how much profit each share "earned". If a company makes Rs 10 billion and has 500 million shares, EPS is Rs 20.
EPS is better than total profit for comparing over time, because the number of shares can change after bonus issues, splits or rights issues.
Payout ratio
Payout ratio = dividends per share ÷ EPS
If EPS is Rs 20 and the company pays Rs 12 in dividends, the payout ratio is 60%. Many large PSX companies pay out a high share of profits. A very high ratio (close to or above 100%) may not be sustainable. A low one means the company is keeping more profit to grow.
Valuation: is the price reasonable?
P/E ratio (price to earnings)
P/E = share price ÷ EPS over the last 12 months
It tells you how many years of current profit you are paying for. Here are trailing P/Es of some large PSX companies at the 30 September 2026 close:
| Company | Sector | P/E |
|---|---|---|
| OGDC | Oil and gas exploration | 5.6 |
| POL | Oil and gas exploration | 6.7 |
| UBL | Bank | 7.1 |
| MCB | Bank | 8.7 |
| MARI | Oil and gas exploration | 8.7 |
| FFC | Fertiliser | 10.1 |
| MEBL | Islamic bank | 10.9 |
| EFERT | Fertiliser | 12.6 |
How to use P/E sensibly:
- Compare within a sector. Banks and fertiliser companies have different typical P/Es.
- Low is not always cheap. A low P/E can mean the market expects profits to fall, or worries about risks such as circular debt for energy companies.
- High is not always expensive. A fast-growing company can deserve a higher P/E.
- Check for missing data. Screeners sometimes show P/E as 0 when earnings data is missing.
P/B ratio (price to book)
P/B = share price ÷ book value per share
Book value is the company's assets minus its liabilities, its "net worth" on paper. P/B is most useful for banks and asset-heavy companies. A P/B below 1 means the market values the company at less than its accounting net worth, which could signal value or problems.
Quality: is the business good?
Return on equity (ROE)
ROE = profit after tax ÷ shareholders' equity
It shows how much profit the company makes on the shareholders' money. An ROE of 20% means Rs 20 of yearly profit for every Rs 100 of equity. Consistently high ROE, year after year, is a sign of a strong business. Be careful if a high ROE comes mainly from heavy borrowing.
Debt
Check how much the company owes:
- Debt to equity: total borrowing ÷ shareholders' equity. Above 1 means more debt than equity.
- Finance cost: the interest bill in the profit and loss statement. With the SBP policy rate at 11.5% in September 2026, heavily indebted companies pay a lot in interest, which eats into profit.
Banks are different: borrowing (deposits) is their raw material, so debt ratios do not apply to them in the same way. For banks, look at capital adequacy and non-performing loans in their reports.
For Shariah-compliant investors, interest-bearing debt also matters for screening. Lesson 8 explains.
A worked example
Here is a made-up company, "ABC Ltd", to show the method. The numbers are invented for teaching.
| Item | This year | Last year |
|---|---|---|
| Revenue | Rs 50 billion | Rs 44 billion |
| Profit after tax | Rs 6 billion | Rs 5 billion |
| Shares in issue | 300 million | 300 million |
| EPS | Rs 20 | Rs 16.67 |
| Dividend per share | Rs 12 | Rs 10 |
| Shareholders' equity | Rs 30 billion | Rs 27 billion |
At a share price of Rs 180:
- Revenue growth: 13.6%
- EPS growth: 20%
- Payout ratio: 12 ÷ 20 = 60%
- P/E: 180 ÷ 20 = 9
- Dividend yield: 12 ÷ 180 = 6.7%
- ROE: 6 ÷ 30 = 20%
- Book value per share: Rs 30 billion ÷ 300 million = Rs 100, so P/B = 1.8
The picture: profits growing faster than sales, a healthy payout, a solid ROE and a moderate P/E. That is the kind of profile many long-term investors look for. You would still check debt, one-off items and the outlook in the directors' report.
How the market reacts
Prices move on results compared with expectations, not just on whether profit went up. If analysts expected 30% growth and the company delivered 20%, the price can fall on "good" results. Brokerage research houses publish previews before results season; your broker may share them.
Key points
- Find results on the PSX announcements page and company websites. Compare with the same period last year.
- Revenue shows sales; profit after tax shows what is left for shareholders; EPS is profit per share.
- Payout ratio = dividend ÷ EPS. P/E = price ÷ EPS. P/B = price ÷ book value per share.
- ROE shows how well the company uses shareholders' money. Check debt and finance costs, especially when interest rates are high.
- Compare valuation within a sector, and remember prices react to expectations.
Next lesson: Shariah-compliant investing on the PSX. Check current prices on our market page.