How to Read PSX Annual Reports: EPS, Book Value and FCF

Every company listed on the Pakistan Stock Exchange (PSX) files its annual report with the exchange. The quickest place to find it is the company's page on the PSX Data Portal (dps.psx.com.pk/company/ followed by the ticker, for example OGDC). Open the Announcements tab, choose Financial Results, and look for a filing called "Transmission of Annual Report". Most companies also post the report on their own website, usually under Investor Relations.

Companies announce their results first and send the full report a few weeks later. Oil and Gas Development Company Limited (OGDC) filed its results for the year ended 30 June 2026 on 4 September 2026 and its Annual Report 2026 on 25 September 2026. Lucky Cement Limited (LUCK) filed its FY2026 results on 10 August 2026 and its annual report on 4 September 2026.

Fiscal years differ. OGDC and Lucky Cement close their books on 30 June, banks such as Meezan Bank and MCB Bank on 31 December, and Atlas Honda on 31 March, so "FY2026" means a different twelve months for each. Always note the period printed at the top of each statement.

An annual report runs to hundreds of pages: the chairman's review, the directors' report, governance disclosures and the auditor's report. For valuing a share you need three statements, which Pakistani reports title using IFRS names:

Most reports contain two complete sets of statements: the company's own ("separate" or "unconsolidated") accounts, and consolidated accounts that add in its subsidiaries. The figures above are OGDC's separate statements. The section on standalone and consolidated accounts below explains which set to use.

The amounts in the statements are usually in thousands of rupees, marked "(Rupees '000)" at the top of the column. OGDC's profit of 242,373,646 in that column is Rs 242.37 billion, not Rs 242 million.

Earnings per share is the last line of the statement of profit or loss. International Accounting Standard 33 requires listed companies to show it, with the previous year alongside. OGDC's Annual Report 2026 shows basic and diluted EPS of Rs 56.35 for the year ended 30 June 2026, against Rs 39.50 a year earlier.

You can check the figure yourself: EPS = profit after tax ÷ weighted average number of shares. For OGDC, Rs 242,373,646 thousand ÷ 4,300,928,400 shares = Rs 56.35.

Look for one-off items in the notes

A single number can mislead. OGDC's profit after tax rose 42.7% in FY2026, yet its profit before tax fell 7.2%, from Rs 279.3 billion to Rs 259.1 billion. The difference is in note 35.1: after the Federal Constitutional Court's ruling on super tax for exploration and production companies (short order of 27 January 2026), OGDC reversed Rs 50.76 billion of tax it had provided for earlier years.

Without that one-off reversal, FY2026 profit would have been about Rs 191.6 billion, or roughly Rs 44.55 per share, 12.8% above FY2025. This is a simple adjustment that removes the reversal and nothing else. Whenever profit after tax and profit before tax move in different directions, read the tax note.

Use several years for cyclical companies

Cement, fertiliser and energy earnings move with prices and the economic cycle, so one year is a weak base for a valuation. Lucky Cement's standalone EPS, restated for its 5-for-1 share split, was between Rs 8.61 and Rs 9.46 in FY2021 to FY2023 and then rose to Rs 31.83 in FY2026. Averaging the last three years (Rs 24.44) gives a steadier input than the latest year alone. The six-year summary near the front of most annual reports has these figures in one table.

Book value per share (BVPS) is the accounting value of the equity behind each share. Annual reports rarely print it, so you calculate it from the statement of financial position in three steps.

1. Find equity attributable to owners. In OGDC's separate statement of financial position, share capital and reserves total Rs 1,519,550,164 thousand at 30 June 2026. In consolidated accounts, use the line "attributable to the owners" and leave out non-controlling interest, which belongs to other shareholders of the subsidiaries.
2. Find the number of shares. Divide paid-up share capital by the par value printed in the share capital note. OGDC: Rs 43,009,284 thousand ÷ Rs 10 = 4,300,928,400 shares. Do not assume Rs 10: Lucky Cement's par value has been Rs 2 since its April 2025 share split, so its Rs 2,930,000 thousand of capital is 1,465,000,000 shares.
3. Divide. OGDC: Rs 1,519,550,164 thousand ÷ 4,300,928,400 shares = Rs 353.31 per share at 30 June 2026, up from Rs 313.48 a year earlier.

Two adjustments are worth knowing. If equity includes a surplus on revaluation of land and buildings, a conservative investor may leave it out, because the gain has not been realised. Preference share capital, where a company has any, should come out of equity before you divide by ordinary shares. Deferred tax needs no adjustment: it is already deducted as a liability before equity is struck.

Free cash flow (FCF) is the cash a business has left after paying for the assets it needs: FCF = net cash generated from operating activities − capital expenditure. Both lines are in the statement of cash flows. Companies label capital spending differently: OGDC shows a single "capital expenditure" line, while many manufacturers show "purchase of property, plant and equipment". Include every line of spending on long-term operating assets.

OGDC earned Rs 169.9 billion in FY2025 but had negative free cash flow, and in FY2026 its free cash flow was about a fifth of its profit. Two lines in the report explain most of the gap. Trade debts, mostly gas and oil sales its customers had not yet paid for, stood at Rs 594.8 billion on 30 June 2026, more than a full year of revenue (Rs 449.2 billion). And OGDC paid Rs 127.1 billion of income tax in cash in FY2026, while the profit or loss statement shows a tax charge of only Rs 16.8 billion after the reversal.

Over six years the pattern holds. OGDC's profit after tax added up to Rs 1,071.2 billion from FY2021 to FY2026, but its operating cash flow was Rs 446.6 billion, about 42% of profit. For any company, compare these two lines over several years before you use earnings in a valuation.

A holding company's own accounts show only the dividends its subsidiaries pay it. Consolidated accounts add the subsidiaries' full revenue, costs, assets and debts, then separate out the share that belongs to their outside (non-controlling) shareholders. Lucky Cement owns stakes in businesses including Lucky Core Industries, Lucky Motor Corporation and Lucky Electric Power Company, so its two sets of FY2026 numbers differ widely:

Use consolidated figures for a company that runs much of its business through subsidiaries, and take the "attributable to owners" lines. Lucky Cement's consolidated profit was Rs 96.5 billion, of which Rs 89.0 billion belonged to its own shareholders and Rs 7.4 billion to the other shareholders of its subsidiaries. Use standalone figures for a company with no significant subsidiaries.

Whichever set you choose, use it for every number. Consolidated EPS divided into the price, next to a standalone book value, mixes two different companies. Note that the P/E shown on the PSX Data Portal is based on unconsolidated (standalone) accounts.

With the three numbers in hand, you can relate them to the share price. OGDC closed at Rs 302.46 on the PSX on 27 October 2026, when its shares were trading ex-dividend.

The one-off tax reversal lowers OGDC's P/E from 6.8× to 5.4×, and the gap between profit and cash shows up as a free cash flow yield (4.0%) far below the earnings yield the P/E implies. These ratios describe the year to 30 June 2026. They are not a valuation and not a reason to buy or sell. OGDC's results for the quarter to 30 September 2026 are due after its board meeting on 30 October 2026.

To take the next step, enter EPS and book value per share in the Intrinsic Value Calculator (it explains the Graham Number it uses), or free cash flow per share in the DCF calculator. To judge whether a P/E is high or low for its industry, compare it with the P/E benchmarks by PSX sector.

1. Reading thousands as rupees. Check the "(Rupees '000)" note at the top of each column before you divide.
2. Assuming a Rs 10 par value. After share splits, Lucky Cement and Systems Limited have Rs 2 shares. Read the share capital note.
3. Taking profit at face value. OGDC's FY2026 profit includes a Rs 50.76 billion tax reversal for earlier years. If profit before and after tax move apart, read the tax note.
4. Mixing standalone and consolidated figures. Use one set throughout, and the "attributable to owners" lines in consolidated accounts.
5. Treating profit as cash. OGDC's free cash flow was negative in FY2025 despite Rs 169.9 billion of profit. Check operating cash flow and receivables.
6. Using one year for a cyclical business. Average three to five years of EPS and free cash flow, using figures restated for any share split.

For the wider method, including how these inputs feed different valuation models, read how to value stocks in Pakistan.