Transmission of Quarterly Financial Statements for the Period Ended 31-12-2025

INNOVATION BUILT ON TRUST

Condensed Interim Financial Information For The Half Year Ended 31 December 2025 01

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED 31 DECEMBER 2025

TABLE OF CONTENTS

CORPORATE INFORMATION 03

DIRECTORS' REVIEW REPORT 04

DIRECTORS' REVIEW REPORT (URDU) 07

INDEPENDENT AUDITOR'S REVIEW REPORT 11

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION 12

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS 13

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 14

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY 15

CONDENSED INTERIM STATEMENT OF CASH FLOWS 16

Condensed Interim Financial Information For The Half Year Ended 31 December 2025 01

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 17

CORPORATE INFORMATION

BOARD OF DIRECTORS

Mr. Sebastian Martin Ferrarassi Non-Executive Director Chairman Mrs. Akhter Khalid Waheed Executive Director

Mrs. Amna Piracha Khan Non-Executive Director

Mr. Osman Khalid Waheed Non-Executive Director

Mrs. Munize Azhar Peracha Non-Executive Director

Mr. Naveed Kamran Baloch Independent Director

S M Wajeeh Uddin Independent Director

AUDIT COMMITTEE

S M Wajeeh Uddin Chairman

Mrs. Amna Piracha Khan Member

Mr. Osman Khalid Waheed Member

Mr. Naveed Kamran Baloch Member

HR & REMUNERATION COMMITTEE

Mr. Naveed Kamran Baloch Chairman

Mr. Osman Khalid Waheed Member

Mrs. Akhter Khalid Waheed Member

S M Wajeeh Uddin Member

CHIEF EXECUTIVE OFFICER

Mr. Muhammad Farhan Rafiq

CHIEF FINANCIAL OFFICER & COMPANY SECRETARY

Mr. Abdur Rehman

HEAD OF INTERNAL AUDIT

Mr. Muhammad Muzammil Ijaz

BANKERS

Allied Bank Limited Bank Alfalah Limited Bank of Punjab Taqwa

EXTERNAL AUDITORS

KPMG Taseer Hadi & Co. Chartered Accountants

LEGAL ADVISORS

Khan & Piracha

SHARE REGISTRAR

CDC Share Registrar Services Limited

CDC House, 99-B, Block-B, S.M.C.H.S, Main Shahrah Faisal, Karachi.

Telephone: +92-21-1111 111 500

REGISTERED OFFICE

197-A, The Mall, Rawalpindi, Pakistan

Telephone: +92-51-4252155-57

Fax: +92-51-4252153

Email: cs@bfbio.com

BankIslami Pakistan Limited Faysal Bank Limited

First Habib Modaraba Habib Bank Limited

Habib Metropolitan Bank Limited MCB Bank Limited

Meezan Bank Limited

FACTORY & HEAD OFFICE

5 K.M - Sunder Raiwind Road Lahore, Pakistan

Telephone: +92-42-36026700

Fax: +92-42-36026701

DIRECTORS' REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2025

We are pleased to present a brief review of un-audited condensed interim financial information of BF Biosciences Limited ("the Company") for the half year ended 31 December 2025.

Highlights of the Company's Financial Results

A summary of financial results for the period is given below:

Financial and Operational Review:

The Company's net sales closed at Rs. 5,100 million for the half-year, compared to Rs. 2,714 million, depicting a growth of 88% over the same period last year. In-market generic sales grew by 67%, whereas institutional sales increased by 254%. The increase in sales primarily represents volume increase from existing and new products post start of commercial operations of Line II.

The Company's gross profit margin stands at 43.4% compared to 43.7% same period last year. The slight decrease is mainly due to the change in sales mix.

To support the growth in topline, selling and distribution expenses increased by 90%. The increase is primarily due to field force expansion and marketing activities during the period under review. Administrative expenses increased by Rs. 47 million, primarily due to the impact of salary adjustments and inflation.

The profit after tax of the Company closed at Rs. 347 million against Rs. 196 million achieved during the same period last year, depicting an absolute increase of 77%. Based on the weighted average number of shares, earnings per share (EPS) for the half year ended 31 December 2025 closed at Rs.

3.93 per share, compared to Rs. 2.66 per share same period last year.

DIRECTORS' REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2025

Future Outlook

With a prevalence rate of 33%, Pakistan is among the countries carrying highest burden of diabetes. According to the WHO, 57% of women and 41% of men in Pakistan are overweight or obese. Obesity increases the risk of Type 2 diabetes by 7 times.

To strengthen our commitment towards combating diabetes and obesity, the Company has launched Zeptide® (Tirzepatide), which will further expand the company's anti-obesity / diabetes portfolio. Tirzepatide is a synthetic polypeptide molecule that acts as a dual agonist for the GLP-1 and GIP receptors, targeting both the glucagonlike peptide-1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptor pathways. Tirzepatide is approved by US Food and Drug Administration (FDA) for treating type 2 diabetes mellitus and obesity.

The development of Zeptide® was undertaken as part of IPO proceeds utilization as disclosed in prospectus. The management is confident that this launch will contribute positively to the Company's growth and further strengthen its mission to address critical unmet patient needs.

Going forward, the Company remains focused on achieving the remaining milestones outlined in the IPO, including a state-of-the-art cartridge facility. In parallel, management remains resolute in expanding the company's product portfolio and obtaining SRA certifications, which will ultimately help in expanding our global presence.

Acknowledgments

We want to acknowledge the consistent efforts and dedication of our employees towards achievement of the Company's objectives. We also thank our principals, business partners and valued customers for their continuous support and confidence in the Company.

For and on behalf of the Board of Directors

Mr. Muhammad Farhan Rafiq Mr. Osman Khalid Waheed

Chief Executive Officer Director

25 February 2026

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OUR FINANCIAL STATEMENTS

10 | Condensed Interim Financial Information For The Half Year Ended 31 December 2025

INDEPENDENT AUDITOR'S REVIEW REPORT

KPMG Taseer Had‹ & Co.

Charlerad Accountants

351 5hadman-1, Jail Road, Lahore M000 Pakistan

+92 (42) 111-KPMGTH (576484), Fax +92 (42) 3742 6907

INDEPENDENT AUDITOR'S REVIEW REPORT

To the members of BF Biosciencee Limited

Report on the Review ef Cendeneed intarir» Financial Statements

lntroductictn

We have reviewed the accompanying condensed intenm statement of financial position of BF 8ioeciences Limited {"Ihe Company") as ai 31 December 2025 and the related condensed interim statement ef profit of loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows end notes to the condensed Interim financial statements for the six-month period then ended (here-in-acer referred to as the "condensed interim financial etatemenB"). Management is responsible for the preparation and fair presentation of the condensed interim financial statements in accor4ance with accounting and reporting standards as applicable in Pakislan for interim finer ciel f8goriiDg. Our f98g0rsibility i6to express s conclusion on these condensed ine5m financial statements ba8ed on our review.

6eooe nf Revfew

We conducted our revs in accordance wlth International Standard on Review Engagements 2410. "Review of Interim Financial Information Performed by the Independent Auditor of the Entify". A review of Interim finan0iai statement cas sb of making inquiries, prir«anly of persons responsible for financial and accounting maltera, and applying analytical and other review procedures. A review ie eubetentia ly less in

scope than an aUdi( Oonducted in a0cor4ance with International Slandards on Auditing and consequently

does not enable vs to obtain assurance that we would become aware of all signi5ce»t msltere that might be

identified in an audit. Accordingly. we do not express an audil opinion.

Conclusion

Based an our review, nothing has come to our attention that causes us o believe lhat the oondensed interim finanGial slatements are not prepared, in all material respects, in accordance win the acoounting and departing standards as applkable in Pakistan for interim financial reporting.

Other mctter

Pursuant to the requiremen! of 6ecion 237 (1) (b) of the Companies Act, 2017, only cJmMlative figMres for the half year, presented in the seoond quarter accounts are subject to a limited scop» review by the statutory auditors of the Company. Acoordingly, the figures of the condensed interim statement of proN or loss and cond9n9Bd interim statement of comprehensive income for the three «›onjhs period ended 31 December 2025 have not been reviewed by us.

The engagement partner for the review resulting in this i depended t avdiIor'e report is Rehan Chughlai

Lahore

Date: 26 FebrMary 2826

UDIN: RR202610183TRty08glM

Issued, subscribed and paid up capital 3 265,000,002 265,000,002

Share premium 4 1,780,198,135 1,780,198,135

Unappropriated profit 2,964,069,045 2,616,766,032

5,009,267,182 4,661,964,169

Intangibles 3,129,885 3,983,490

4,491,579,417 4,322,123,324

Non-current liabilities Current assets

Long term loans - secured 5

Long term musharaka - secured 6

Deferred grant Deferred tax liabilities

Stores, spare parts and loose tools Stock in trade

Trade debts 10

Loans and advances

1,772,752,391 1,872,288,928 Deposits, prepayments and other receivables

Short term investments

Current liabilities Advance income tax - net

Cash and bank balances

Current portion of: 5,538,267,902 3,836,406,744

• Long term loans - secured 5

• Long term musharaka - secured 6

• Deferred grant

Trade and other payables Contract liabilities

Short term borrowings - secured 7

Mark-up accrued on borrowings

Contingencies and commitments 8

3,247,827,746 1,624,276,971

10,029,847,319 8,158,530,068 10,029,847,319 8,158,530,068

12 | Condensed Interim Financial Information For The Half Year Ended 31 December 2025

The annexed notes from 1 to 20 form an integral part of these condensed interim financial statements.

Chief Executive Officer Chief Financial Officer Director

BF Biosciences Limited

Condensed Interim Statement of Profit or Loss

For the six months and quarter ended 31 December 2025

Profit after taxation 347,303,013 195,811,997 187,781,578 80,538,994

Earnings per share - basic and diluted 13 3.93 2.66 2.13 1.09

The annexed notes from 1 to 20 form an integral part of these condensed interim financial statements.

Chief Executive Officer Chief Financial Officer Director

BF Biosciences Limited

Condensed Interim Statement of Comprehensive Income

For the six months and quarter ended 31 December 2025

Six months ended (Un-audited) Quarter ended (Un-audited)

-------------------------------------------- Rupees --------------------------------------------

Profit after taxation 347,303,013 195,811,997 187,781,578 80,538,994

Items that will not be subsequently reclassified to profit or loss

Other comprehensive income for the period - - - -

Total comprehensive income for the period 347,303,013 195,811,997 187,781,578 80,538,994

The annexed notes from 1 to 20 form an integral part of these condensed interim financial statements.

Chief Executive Officer Chief Financial Officer Director

BF Biosciences Limited

Condensed Interim Statement of Changes in Equity

For the six months ended 31 December 2025

-----------------------------Rupees----------------------------

Balance as at 31 December 2024 - unaudited 265,000,002 1,780,198,135 2,365,430,673 4,410,628,810

Balance as at 01 Jul 2025 - audited 265,000,002 1,780,198,135 2,616,766,032 4,661,964,169

Total comprehensive income for the period - - 347,303,013 347,303,013

Balance as at 31 December 2025 - unaudited 265,000,002 1,780,198,135 2,964,069,045 5,009,267,182

The annexed notes from 1 to 20 form an integral part of these condensed interim financial statements.

Chief Executive Officer Chief Financial Officer Director

BF Biosciences Limited

Condensed Interim Statement of Cash Flows

For the six months ended 31 December 2025

Cash flow from operating activities Note

Six months ended (Un-audited) 31 December 31 December

2025 2024

-------------- Rupees ---------------

Profit before taxation 608,219,664 322,397,733

Adjustments for non-cash and other items:

Trade and other payables Contract Liabilities

1,557,388,340 595,517,646

307,731,802 (41,420,229)

The annexed notes from 1 to 20 form an integral part of these condensed interim financial statements.

Chief Executive Officer Chief Financial Officer Director

BF Biosciences Limited

Notes to the Condensed Interim Financial Statements (Un-audited)

For the six months ended 31 December 2025

1. Reporting entity

   BF Biosciences Limited ("the Company") was incorporated on 24 February 2006 as an unlisted public limited company under the Companies Ordinance, 1984 (now Companies Act, 2017) pursuant to signing of an agreement between M/s Ferozsons Laboratories Limited, Pakistan ("the Parent Company") and M/s Grupo Empresarial Bagó S.A, Spain. The Company was listed on the Pakistan Stock Exchange on 21 October 2024.

   The principal activity of the Company is import, manufacturing and sale of pharmaceutical products. The registered office of the Company is situated at 197-A, The Mall, Rawalpindi and the production facility is located at 5 KM Sunder Raiwind Road Lahore. The Company commenced its commercial operations on 01 July 2009.

2. Basis of preparation

   1. Statement of compliance

      These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

      • International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

      • Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified under the Companies Act, 2017; and

      • Provisions of and directives issued under the Companies Act, 2017.

      Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34 or IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   2. Basis of preparation

      1. These condensed interim financial statements comprise the condensed interim statement of financial position of the Company as at 31 December 2025 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows together with the notes forming part thereof.

      2. These condensed interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual audited financial statements for the year ended 30 June 2025. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual financial statements.

      3. Comparative statement of financial position's numbers are extracted from the annual audited financial statements of the Company for the year ended 30 June 2025, whereas comparatives of condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows are stated from unaudited condensed interim financial statements of the Company for the six month period ended 31 December 2024.

      4. These condensed interim financial statements are unaudited and being submitted to the shareholders as required under Section 237 of the Companies Act, 2017 and the Listing Regulations of the Pakistan Stock Exchange Limited.

   3. Judgements and estimates

      The preparation of the condensed interim financial statements require management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

      The significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the annual audited financial statements for the year ended 30 June 2025.

   4. Statement of consistency in accounting policies

      The accounting policies and the methods of computation adopted in the preparation of these condensed interim financial statements are same as those applied in the preparation of the annual audited financial statements for the year ended 30 June 2025.

   5. Standards, interpretations and amendments to existing accounting and reporting standards as applicable in Pakistan that have become effective in the current period

      There are certain interpretations and amendments to accounting and reporting standards as applicable in Pakistan effective from accounting periods beginning on or after January 1, 2025. These are either considered not to be relevant or do not have any material effect on the Company's operations and are therefore not detailed in these condensed interim financial statements. However PSX through the circular number PSX/N-1419 dated 24 December 2025 required the relevant listed companies inlcuding the Company to report Shariah disclosures in their half yearly and annual financial statements. Accordingly such discloure has been reported in note 15 to these condensed interim financial statements.

   6. Standards, interpretations and amendments to existing accounting and reporting standards as applicable in Pakistan that are not yet effective

      Following International Financial Reporting Standards (IFRS) as notified under the Companies Act, 2017 and the amendments and interpretations thereto effective for accounting periods beginning on or after 01 January 2026:

      − Lack of Exchangeability (amendments to IAS 21)

      − Amendments to the Classification and Measurement of Financial Instruments - amendments to IFRS 9 Financial Instrument and IFRS 7 Financial Instrument Disclosure

      − IFRS 18 "Presentation and Disclosure in the Financial Statements"

      − IFRS-19 "Subsidiaries without Public Accountability: Disclosures"

      − Annual improvement to IFRS Accounting Standards - Amendments to:

      • IFRS 1 First-time Adoption of International Financial Reporting Standards;

      • IFRS 7 Financial Instruments: Disclosures;

      • IFRS 9 Financial Instruments;

      • IAS 7 Statement of Cash flows

      The management is in the process of assessing the impact of these amendments and interpretation on the Company's financial statements. Other accounting standards and amendments to accounting standards that have been issued but are not yet effective are not expected to have a significant impact on the Company's financial statements.

      Un-audited Audited

3. Issued, subscribed and paid-up capital

   31 December

   2025

   30 June

   2025

   --------------Rupees--------------

   88,333,334 (30 June 2025: 88,333,334) ordinary shares of

   Rs. 3 (30 June 2025: Rs. 3) each fully paid in cash 265,000,002 265,000,002

4. Share Premium

   The share premium reserve can be utilized by the Company only for the purposes specified in section 81(2) & 81(3) of the Companies Act 2017.

5. Long term loans - secured

   During the period, the Company has made repayments amounting to Rs 214.11 million (31 December 2024: 204.16 million). All terms and conditions applicable on long term loans availed are same as those disclosed in annual financial statements of the Company.

6. Long term musharaka - secured

   During the period, the Company has made repayments amounting to Rs 6.93 million (31 December 2024: 11.56 million). All terms and conditions applicable on long term musharaka availed are same as those disclosed in annual financial statements of the Company.

7. Short term borrowings - secured

   All terms and conditions applicable on short term borrowings availed are same as those disclosed in the annual audited financial statements of the Company for the year ended 30 June 2025.

8. Contingencies and commitments

   Except as mentioned below, there is no significant change in commitments or the status of the contingencies as reported in annual financial statements of the Company for the year ended 30 June 2025.

   1. Commitments

      During the period, the Company has entered into new Ijarah arrangements for vehicles. Aggregate commitments for these new Ijarah arrangements amounts to Rs. 198.43 million.

      The contractual payment obligations relating to Ijarah commitments with all banks are as follows:

      Un-audited Audited

      31 December

      2025

      30 June

      2025

      Future payments under Ijarah: Note --------------Rupees--------------

      Not later than one year 45,393,058 5,723,232

      Later than one year but not later than five years 181,311,182 21,358,376

      226,704,240 27,081,608

9. Property, plant and equipment

   Operating fixed assets 9.1 4,199,138,710 4,173,260,648

   Capital work-in-progress 211,486,039 133,031,136

   4,410,624,749 4,306,291,784

   1,452,647,899

   3,707,291,413

   (9,915,490)

Opening balance at beginning of the period / year Depreciation for the period / year

On disposals

Closing balance at end of the period / year 1,108,133,845 976,763,174

Operating fixed assets - net book value 4,199,138,710 4,173,260,648

1. Trade Debts

   This includes expected credit loss allowance amounting to Rs. 45.81 million (30 June 2025: Rs. 12.67 million).

   Six months ended (Un-audited)

   31 December

   2025

   31 December

   2024

   	Local	5,449,805,166		2,913,318,250
   	Export	80,052,051		55,862,763
   		5,529,857,217		2,969,181,013
   	Toll manufacturing:
   	Local	45,908,718		2,227,824
   		5,575,765,935		2,971,408,837
   	Less:
   	Sales returns	(5,105,623)		(8,355,638)
   	Sales tax	(31,131,952)		(10,458,288)
   	Discounts	(439,108,741)		(239,021,644)
   		(475,346,316)		(257,835,570)
   		5,100,419,619		2,713,573,267
   	Disaggregation of revenue (revenue - net)
   	Primary geographical markets
   	Pakistan	5,020,367,568		2,657,710,504
   	Uzbekistan	17,301,513		-
   	Nepal	17,236,698		22,238,994
   	Afghanistan	11,030,400		32,510,000
   	Sri lanka	8,545,566		-
   	Kenya	8,534,293		-
   	Cambodia	7,807,358		-
   	Mauritania	6,702,173		-
   	Others	2,894,050		1,113,769
   		5,100,419,619		2,713,573,267
   12	Cost of goods sold
   	Cost of goods manufactured	2,149,444,584		1,062,373,505
   	Finished stock:
   	Opening	273,520,819		143,982,950
   	Purchases made during the period	888,229,213		597,144,651
   	Closing - net of provision	(426,549,282)		(276,765,532)
   		735,200,750		464,362,069

2. Revenue - net Gross sales:

------------- Rupees -------------

2,884,645,334 1,526,735,574

12.1 The amount charged to the condensed interim statement of profit or loss for the period ended 31 December 2025 on account of write down of finished goods to net realizable value amounts to Rs.

22.91 million (31 December 2024: Rs. 51.75 million).

Six months ended (Un-audited)

1. Related party transactions

   The Company's related parties include the Parent company, associated companies, entities over which directors are able to exercise influence and staff retirement fund. Transactions with related parties during the period are as follows:

   Condensed Interim Financial Information For The Half Year Ended 31 December 2025 21

   Six months ended (Un-audited)

   Name of parties	Relationship	Transactions	31 December 2025 Rupees	31 December 2024 Rupees
   Ferozsons Laboratories Limited	Parent Company	Purchase of medicine	840,313,375	584,840,213
   		Payment made against purchase of medicine	840,313,375	584,840,213
   		Expenses incurred by the Company on behalf of the Parent Company - net	5,425,153	-
   		Receipts received from the Parent Company - net	916,595	-
   		Receipts received by the Company on behalf of the Parent Company - net	4,508,558	12,626,203
   		Payments made to the Parent Company - net	-	15,762,277
   		Expenses incurred by the Parent Company on behalf of the Company - net	-	3,136,074
   		Sale of medicine - net of returns and discounts	29,926,436	6,570,613
   		Receipts received against sale of medicine	29,926,436	6,570,613
   		Premium against corporate guarantee paid by the Parent Company	3,510,000	3,510,000
   		Payment made against premium on corporate guarantee	3,510,000	3,510,000
   Bago Laboratories Pte. Limited	Associated Company	Purchase of medicine	312,737,476	8,464,593
   		Payment made against purchase of medicine	102,178,765	12,678,206
   Farmacia	Associated Company	Sale of medicine - net of returns and discounts	224,143,835	109,381,463
   		Payment received against sale of medicine	224,143,835	109,381,463
   		Purchase of medicine	128,071	-
   		Payment made against purchase of medicine	128,071	-
   Employees provident fund	Post employment benefit fund	Provident fund contribution	18,105,676	9,025,742
   Akhtar Khalid Waheed	Chief Executive Officer	Meeting Fee	350,000	200,000
   Directors other than CEO	Non-Executive Directors	Meeting Fee	3,200,000	1,600,000
   Key Management Personnel	Key management personnel	Remuneration including benefits and perquisites	5,928,682	4,772,094
   National Management Foundation (LUMS)	Common directorship	Payment made against services received	500,000	-
   		Donation	-	500,000

   22 | Condensed Interim Financial Information For The Half Year Ended 31 December 2025

2. Disclosure requirement for companies not engaged in Shariah Non-permissible business activities

   Un-audited Audited

   31 December 30 June

   Description	Explanation	Note	2025 Rupees	2025 Rupees
   Statement of financial position - Liability side
   Short term financing - secured	Financing obtained as per Islamic mode		2,361,763	7,328,736
   	Mark-up accrued on conventional loan		61,326	467,307
   Long term financing	Financing obtained as per Islamic mode		68,701,357	75,635,227
   	Mark-up accrued on conventional loan		10,933,559	15,307,771
   Statement of financial position - Asset side
   Cash and bank balances	Shariah compliant bank deposits and bank balances		117,413,702	61,268,467
   Six months ended (Un-audited)
   			31 December	31 December
   			2025	2024
   			Rupees	Rupees
   Statement of profit or loss
   Revenue - net	Revenue earned from shariah compliant business segment	11	5,100,419,619	2,713,573,267
   Other income - Profit on bank deposits	Profit earned from shariah compliant bank deposits		5,340	37,896
   Finance cost - Profit paid on Islamic mode of financing	Profit paid under Shariah Compliant transactions		6,686,841	24,641,410
   Source and detailed breakup of other Income
   Earned from shariah compliant transactions
   - Income from financial assets	Earned from Shariah Compliant transactions		5,340	37,896
   - Income from non-financial assets	Earned from Shariah Compliant transactions		2,204,460	352,025
   Earned from non-shariah compliant transactions
   - Income from financial assets	Earned from non-Shariah compliant transactions		69,223,897	51,853,339

   Relationship with Shariah-compliant financial institutions with balances outstanding at period end

   Name	Relationship
   Meezan Bank Limited	Bank deposits and borrowing arrangement
   Faysal Bank Limited	Bank deposits and borrowing arrangement
   The Bank of Punjab - Taqwa	Bank deposits and borrowing arrangement
   Bank Islami Pakistan Limited	Bank deposits and borrowing arrangement
   First Habib Modaraba	Borrowing arrangement

3. Financial risk management and fair value of financial instruments

   1. The Company's financial risk management objective and policies are consistent with that disclosed in the annual financial statements for the year ended 30 June 2025.

   2. Fair value of financial instruments

      Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

      Underlying the definition of fair value is the presumption that the Company is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.

      Condensed Interim Financial Information For The Half Year Ended 31 December 2025 23

      The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the quoted market prices at the close of trading on the period end date. The quoted market prices used for financial assets held by the Company is current bid price.

      IFRS 13, 'Fair Value Measurements' requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels;

      • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

      • Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

      • Level 3: Unobservable inputs for the asset or liability.

      The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy:

      Valuation technique used in determination of fair value within level 2

      Short term investments

      Fair values of short term investments are determined based on their net asset values as published at the close of reporting period.

      Carrying Amount Fair Value Fair value

      through

      statement of profit or loss

      Financial assets

      at amortized cost

      Other financial

      liabilities

      Total Level 1 Level 2 Level 3

      - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - -

      31 December 2025 (Un-audited)

      Financial assets measured at fair value

      Short term investments	1,329,611,562	-	-	1,329,611,562		-	1,329,611,562	-
      Financial assets not measured at fair value
      Long term deposits	-	25,370,010	-	25,370,010		-	-	-
      Trade debts	-	605,841,661	-	605,841,661		-	-	-
      Deposits and other receivables	-	119,711,129	-	119,711,129		-	-	-
      Cash and bank balances	-	389,404,846	-	389,404,846	- - -
      	-	1,140,327,646	-	1,140,327,646	- - -
      Financial liabilities measured at fair value	- -		-	- - - -
      Financial liabilities not measured at fair value
      Trade and other payables	-	-	2,438,135,535	2,438,135,535	-		-	-
      Long term loans - secured	-	-	1,486,818,611	1,486,818,611	-		-	-
      Long term musharaka - secured	-	-	68,701,357	68,701,357	-		-	-
      Short term borrowings	-	-	83,371,774	83,371,774	- - -
      	-	-	4,077,027,277	4,077,027,277	- - -

      24 | Condensed Interim Financial Information For The Half Year Ended 31 December 2025

      Carrying Amount Fair Value

      Fair value through statement of profit or loss

      Financial assets at amortized cost

      Other financial Total Level 1 Level 2 Level 3 liabilities

      - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - -

      30 June 2025 (Audited)

      Financial assets measured at fair value

      Short term investments	1,166,746,670 - -			1,166,746,670	- 1,166,746,670 -
      Financial assets not measured at fair value
      Long term deposits	-	11,848,050	-	11,848,050	-	-	-
      Trade debts	-	184,242,161	-	184,242,161	-	-	-
      Deposits and other receivables	-	77,371,880	-	77,371,880	-	-	-
      Cash and bank balances	-	344,470,143	-	344,470,143	- - -
      	-	617,932,234	-	617,932,234	- - -
      Financial liabilities measured at fair value	-	-	-	-	- - -
      Financial liabilities not measured at fair value
      Trade and other payables	-	-	1,001,604,866	1,001,604,866	-	-	-
      Long term loan - secured	-	-	1,635,063,265	1,635,063,265	-	-	-
      Long term musharaka - secured	-	-	75,635,227	75,635,227	-	-	-
      Short term borrowings	-	-	30,564,348	30,564,348	- - -
      	-	-	2,742,867,706	2,742,867,706	- - -

4. Utilization of proceeds from Initial Public Offering (IPO)

   The Company raised funds through its Initial Public Offering (IPO) to acquire plant and machinery, obtain export-related certifications & product development, and finance working capital requirements. The breakup of utilization of the IPO proceeds as at 31 December 2025 is summarized below:

   	Amount Rupees
   Gross proceeds from IPO:	1,925,000,000
   Less: Transaction costs paid	(69,801,865)
   Net Inflows	1,855,198,135
   Less: Purchase of plant & machinery	(228,350,413)
   Less: Certifications & new product development expenses	(59,156,885)
   Less: Expenditures incurred on working capital	(1,016,519,030)
   	(1,304,026,328)
   Balance Amount	551,171,807

5. Subsequent event

   The Board of Directors of the Company in its meeting held on 25 February 2026 has approved an interim cash dividend of Rs. Nil per share (31 December 2024: Rs. Nil per share), amounting to Rs. Nil (31 December 2024: Rs. Nil).

6. General

   Figures have been rounded off to nearest rupee.

7. Date of authorization for issue

These condensed interim financial statements were authorized for issue by the Board of Directors of the Company in their meeting held on 25 February 2026.

Chief Executive Officer Chief Financial Officer Director

https://www.bfbio.com bf-biosciences-ltd