Transmission of Half Yearly Report for the Period Ended December 31, 2025

DIRECTORS' REVIEW

Dear Shareholders

The Directors of your Company are presenting the un-audited financial statements for the half year ended December 31, 2025.

During the six months under review, the Company recorded net sales of Rs. 714.73 million as compared to Rs. 854.97 million of the same period of the last year. The gross profit for the six months under review was Rs. 62.30 million as against gross profit of Rs. 54.07 million of corresponding period of the last year. The loss after tax for the six months was Rs. 23.02 million as compared to loss after tax of Rs. 35.42 million of same period of the last year.

The loss per share for the half year under review was Rs. 2.01 as against the loss per share of Rs.

3.09 of corresponding period of the last year.

The Company recorded the production and sales volume of 1,936 MT and 1,785 MT, respectively, compared to 1,881 MT and 2,030 MT in the corresponding period of the last year.

Although, the first phase of Punjab Government's Green Tractor Subsidy Scheme for Bigger H.P tractor has benefitted the Company, but, the Company is expected to fully benefit after the presents Subsidy scheme for smaller H.P tractors.

Moreover, the anticipated continuation of government support for agricultural mechanization, coupled with Millat Tractors' strategic expansion into export markets, should also greatly help BCL in boasting its production and sales in the following months.

We would like to thank and acknowledge the efforts and cooperation of our executives and workforce, vendors and all other stakeholders for being steadfast and standing resolute with us during the period under review.

For and on behalf of the Board

Karachi:

February 12, 2026

MUJTABA AHMAD

Chief Executive Officer

Page-3

INDEPENDENT AUDITORS' REVIEW REPORT

TO THE MEMBERS OF BOALN CASTINGS LIMITED

REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Bolan Castings Limited as at December 31, 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, and notes to and forming part of the condensed interim financial statements for the six months period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other matter

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the six months, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the Company. Accordingly, the figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the quarter ended December 31, 2025 and December 31, 2024 have not been reviewed by us.

The engagement partner on the audit resulting in this independent auditor's report is Farrukh Rehman.

A.F.Ferquson & Co.

Chartered Accountants

Karachi

Date : February 23, 2026

UDIN : RR202510059raoq2fZjO

Page-4

BOLAN CASTINGS LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2025

(Unaudited)

(Audited)

Note

December 31,

June 30,

2025

2025

Rupees

Rupees

ASSETS

Non-current assets

Property, plant and equipment

4

134,943,102

142,687,584

Long-term investment

5

-

40,871,000

Long-term loans

11,000

89,000

Deferred tax asset - net

6

4,277,907

3,227,499

Long-term deposits

4,747,790

4,747,790

Employee benefits plan asset

21,063,404

20,058,142

165,043,203

211,681,015

Current assets

Stores, spare parts and loose tools

106,584,668

124,751,685

Inventories

7

261,036,342

243,038,159

Trade receivables

8

52,875,832

147,356,764

Loans and advances

3,998,986

3,320,373

Trade deposits and short-term prepayments

9

14,177,215

8,406,204

Other receivables

10

18,212,137

16,139,888

Taxation - payments less provision

15,771,395

12,562,927

Cash and bank balances

11

105,535,283

29,520,607

578,191,858

585,096,607

TOTAL ASSETS

743,235,061

796,777,622

EQUITY AND LIABILITIES

Share Capital and reserves

Share capital

114,725,290

114,725,290

General and other reserves

197,078,635

206,636,773

311,803,925

321,362,063

LIABILITIES

Non-current liabilities

Long-term deposits

2,234,020

2,279,120

Employee benefits plan obligations

23,684,499

22,658,997

Long-term financing

12

-

5,000,000

25,918,519

29,938,117

Current liabilities

Trade and other payables

13

303,406,137

297,110,491

Advances from customers

1,043,834

1,011,303

Accrued mark-up

2,447,630

3,888,567

Current portion of long-term deposits

239,040

219,888

Current portion of long-term financing

12

35,000,000

60,000,000

Unclaimed dividend

3,375,976

3,377,193

Short-term financing

14

60,000,000

79,870,000

405,512,617

445,477,442

TOTAL LIABILITIES

431,431,136

475,415,559

Contingencies and commitments

15

TOTAL EQUITY AND LIABILITIES

743,235,061

796,777,622

The annexed notes 1 to 24 form an integral part of these condensed interim financial statements.

Chief Executive

Director

Chief Financial officer

Page-5

BOLAN CASTINGS LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2025 - (UNAUDITED)

Quarter ended

Six months period ended

Note

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

(Rupees)

Revenue from contracts with customers

16

421,858,943

440,922,109

714,731,428

854,976,464

Cost of sales

17

(363,158,896)

(392,083,574)

(652,423,920)

(800,901,673)

Gross profit

58,700,047

48,838,535

62,307,508

54,074,791

Distribution expenses

(16,059,797)

(11,732,783)

(29,871,318)

(23,285,215)

Administrative expenses

(22,964,530)

(19,466,150)

(44,080,511)

(39,961,658)

Other expense

18

956,954

-

(129,913)

-

Other income

(46,251,562)

1,663,316

5,424,966

6,043,659

Operating (loss) / profit

(25,618,888)

19,302,918

(6,349,268)

(3,128,423)

Finance costs

(3,586,599)

(10,498,055)

(8,091,395)

(23,198,735)

(Loss) / profit before income tax expense

(29,205,487)

8,804,863

(14,440,663)

(26,327,158)

Income tax expense

19

(4,830,298)

(5,583,489)

(8,583,422)

(9,091,435)

(Loss) / Profit for the period

(34,035,785)

3,221,374

(23,024,085)

(35,418,593)

(Loss) / earnings per share

- basic and diluted

20

(2.97)

0.28

(2.01)

(3.09)

The annexed notes 1 to 24 form an integral part of these condensed interim financial statements.

Chief Executive

Director

Chief Financial Officer

Page-6

BOLAN CASTINGS LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2025 - (UNAUDITED)

Quarter ended

Six months period ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

(Rupees )

(Loss) / profit for the period

(34,035,785)

3,221,374

(23,024,085)

(35,418,593)

Others comprehensive (loss) / income

Items that will not be reclassified to profit or loss

in subsequent period

Unrealised gain on revaluation of

investment at fair value through other

comprehensive income (FVTOCI) - note 5

-

10,798,500

13,465,947

3,737,500

Total comprehensive (loss) / income

for the period

(34,035,785)

14,019,874

(9,558,138)

(31,681,093)

The annexed notes 1 to 24 form an integral part of these condensed interim financial statements.

Chief Executive

Director

Chief Financial Officer

Page-7

BOLAN CASTINGS LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2025 - (UNAUDITED)

SHARE

RESERVES

CAPITAL

CAPITAL

REVENUE

Is sued,

subscribed and paid up capital

Share premium

General reserve

Accumulated loss

Investment revaluation reserve

Sub Total

Total

(Rupees)

Balance as at July 1, 2024

114,725,290

12,155,680

424,500,000

(247,707,725)

31,875,000

220,822,955

335,548,245

Total comprehensive loss for the

six months period ended December 31, 2024

- Loss for the period

-

-

-

(35,418,593)

-

(35,418,593)

(35,418,593)

- Other comprehensive income for the period

-

-

-

-

3,737,500

3,737,500

3,737,500

-

-

-

(35,418,593)

3,737,500

(31,681,093)

(31,681,093)

Balance as at December 31, 2024

114,725,290

12,155,680

424,500,000

(283,126,318)

35,612,500

189,141,862

303,867,152

Balance as at July 1, 2025

114,725,290

12,155,680

424,500,000

(265,389,907)

35,371,000

206,636,773

321,362,063

Total comprehensive loss for the

six months period ended December 31, 2025

- Loss for the period

-

-

-

(23,024,085)

-

(23,024,085)

(23,024,085)

- Other comprehensive income for the period

-

-

-

-

13,465,947

13,465,947

13,465,947

-

-

-

(23,024,085)

13,465,947

(9,558,138)

(9,558,138)

- Transfer of reserve on disposal of investment held at FVTOCI

-

-

-

48,836,947

(48,836,947)

-

-

Balance as at December 31, 2025

114,725,290

12,155,680

424,500,000

(239,577,045)

-

197,078,635

311,803,925

The annexed notes 1 to 24 form an integral part of these condensed interim financial statements.

Chief Executive

Director

Chief Financial Officer

Page-8

BOLAN CASTINGS LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS

FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2025 - (UNAUDITED)

Six months period ended

Note

December 31,

2025

December 31,

2024

Rupees

Rupees

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations

21

91,523,804

111,526,433

Decrease in long-term loans

78,000

423,248

(Decrease) / increase in long-term deposits

(25,948)

104,104

Income taxes paid

(12,842,298)

(2,331,163)

Employee benefits paid

(766,249)

(1,035,387)

Finance costs paid - Islamic

(5,270,335)

(10,853,718)

Finance costs paid - Conventional

(4,175,273)

(13,740,435)

Net cash generated from operating activities

68,521,701

84,093,082

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment

4.1

(479,700)

-

Proceeds from disposal of property, plant and equipment

1,291,408

134,730

Return received on savings and deposit accounts

2,215,537

2,938,285

Proceeds from disposal of long term investment

54,336,947

-

Dividend received

-

862,500

Net cash generated from investing activities

57,364,192

3,935,515

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid

(1,217)

(15,362)

Repayment of long-term financing

12

(30,000,000)

(30,000,000)

Short-term financing obtained

14

60,000,000

83,910,000

Repayment of short-term financing

14

(79,870,000)

(96,026,000)

Net cash used in financing activities

(49,871,217)

(42,131,362)

Net increase in cash and cash equivalents

76,014,676

45,897,235

Cash and cash equivalents at beginning of the period

29,520,607

43,495,992

Cash and cash equivalents at end of the period

11

105,535,283

89,393,227

The annexed notes 1 to 24 form an integral part of these condensed interim financial statements.

Chief Executive

Director

Chief Financial Officer

Page-9

BOLAN CASTINGS LIMITED

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2025 - (UNAUDITED)

1.

THE COMPANY AND ITS OPERATIONS

1.1

Bolan Castings Limited (the Company) is a public limited company incorporated in Pakistan on July 15, 1982 under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017) and is listed on the Pakistan Stock Exchange (PSX). The Company manufactures and sells castings for tractors and automotive parts.

The geographical location and address of the Company's business unit, including plant is RCD Highway, Hub Chowki, District Lasbela, Balochistan, Pakistan.

The Company is a subsidiary of Millat Tractors Limited (the Parent Company) which holds 5.31 million shares of the Company as at December 31, 2025 representing 46.26% shareholding in the Company.

2.

BASIS OF PREPARATION

2.1

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; and

-

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

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

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

2.2

Basis of measurement

These condensed interim financial statements have been prepared under the historical cost convention except as disclosed in the accounting policy notes.

2.3

Functional and presentation currency

These condensed interim financial statements are presented in Pakistani Rupees, which is also the Company's functional currency.

2.4

Changes in accounting standards, interpretations and amendments to published accounting and reporting standards.

a)

Standards, interpretations and amendments to approved accounting and reporting standards that are effective

There are certain amendments and interpretations to the accounting and reporting standards which are mandatory for the Company's annual accounting period which began on July 1, 2025. However, these do not have any significant impact on the Company's financial reporting.

b)

Standards and amendments to approved accounting Standards that are not yet effective

The following standards or amendments are not effective for the accounting periods beginning on or after July 1, 2026 and have not been early adopted by the Company:

IFRS 18 'Pres entation and Disclosure in Financial Statements' (IFRS 18) (effective January 1, 2027)

A new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss is being introduced. The key new concepts introduced in IFRS 18 relate to:

-

the structure of the statement of profit or loss;

-

required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures): and

-

enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

Other than above, there are standards and certain amendments to accounting standards that are not yet effective and have not been early adopted by the Company for the financial year beginning on July 1, 2026. Such standards and amendments are not expected to have any significant impact in the Company's financial reporting and, therefore, have not been presented in these financial statements.

Page-10

3.

ACCOUNTING POLICIES, ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT

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

The preparation of condensed interim financial statements in conformity with accounting and reporting standards, as applicable in Pakistan, requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these judgements, estimates and assumptions.

However, management believes that the change in outcome of judgements, estimates and assumptions would not have a material impact on the amounts disclosed in these condensed interim financial statements.

Judgements and estimates made by the management in the preparation of these condensed interim financial statements are the same as those that were applied to the financial statements as at and for the year ended June 30, 2025.

The Company's financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended June 30, 2025.

(Unaudited)

(Audited)

December 31,

June 30,

2025

2025

4.

PROPERTY, PLANT AND EQUIPMENT

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

Operating fixed assets - note 4.1

134,943,102

142,687,584

4.1

Additions to and disposals from operating fixed assets during the period are as follows:

Additions

Disposals

(at cost)

(at net book value)

December 31,

December 31,

December 31,

December 31,

2025

2024

2025

2024

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

Motor vehicles

479,700

-

592,763

134,730

(Unaudited)

(Audited)

December 31,

June 30,

2025

2025

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

5.

LONG-TERM INVESTMENT

Fair Value through Other Comprehensive

Income (FVTOCI)

Balance at beginning of the period / year

40,871,000

37,375,000

Unrealised gain on revaluation

- transferred to equity

13,465,947

3,496,000

Sales proceed

(54,336,947)

-

Balance at end of the period / year - note 5.1

-

40,871,000

5.1

This represents equity investment in Baluchistan Wheels Limited which was sold during the period.

6.

DEFERRED TAX ASSET - NET

Minimum tax and alternate corporate tax on which deferred tax asset is not recognised amounts to Rs. 146.96 million (June 30, 2025: Rs. 138.02 million).

Page-11

(Unaudited)

(Audited)

December 31,

June 30,

2025

2025

7.

INVENTORIES

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

Raw materials [including in transit of Rs. 8.53 million (June 30, 2025: Rs. Nil)]

82,000,398

91,567,428

Work in process - note 7.1

112,573,349

65,491,604

Finished goods - at cost

59,312,064

58,028,274

Finished goods - at fair value less cost to sell - note 7.2

7,150,531

27,950,853

66,462,595

85,979,127

261,036,342

243,038,159

7.1

Inventories include Rs. 19.55 million (June 30, 2025: Rs. 11.90 million) held with third parties.

7.2

Finished goods costing Rs. 8.79 million (June 30, 2025: Rs. 34.13 million) have been written-down to net realisable value by Rs. 1.64 million (June 30, 2025: Rs. 6.18 million).

(Unaudited)

(Audited)

December 31,

June 30,

2025

2025

8.

TRADE RECEIVABLES

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

Considered good

- due from related parties

52,602,162

147,105,520

- others

273,670

251,244

52,875,832

147,356,764

9.

TRADE DEPOSITS AND SHORT-TERM PREPAYMENTS

These include an amount of Rs. 3.86 million (June 30, 2025: Rs. 3.86 million) in the form of Term Deposit Receipt, which is under lien with a bank for issuance of bank guarantee in favour of Sui Southern Gas Company Limited which carries mark-up of 10.55% (June 30, 2025: 10.55 %).

10.

OTHER RECEIVABLES

These include sales tax refundable amounting to Rs. 17.22 million (June 30, 2025: Rs.15.09 million).

(Unaudited)

(Audited)

11.

CASH AND BANK BALANCES

December 31,

June 30,

2025

2025

Rupees

Cash at bank

Conventional

- in savings accounts - note 11.1

84,814,447

22,817,916

- in current accounts

15,351,745

2,426,929

100,166,192

25,244,845

Is lamic

- in savings accounts - note 11.1

4,146,305

4,032,884

- in current accounts

970,673

120,330

5,116,978

4,153,214

Cash in hand

252,113

122,548

105,535,283

29,520,607

11.1

During the period, the mark-up / profit rates on savings accounts range from 6.00% to 9.50% (June 30, 2025: 6.00% to 19.00%) per annum.

Page-12

(Unaudited)

(Audited)

December 31,

June 30,

2025

2025

12.

LONG-TERM FINANCING

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

Opening balance

65,000,000

125,000,000

Repayments during the period / year

(30,000,000)

(60,000,000)

35,000,000

65,000,000

Less: Current portion of long-term financing

(35,000,000)

(60,000,000)

Closing balance

-

5,000,000

12.1

This represents long-term financing arrangements obtained by the Company through the restructuring of its short-term running finance facility with Bank Alfalah Limited. The facility is payable in equal monthly installments over a period of 36 months which include a grace period of 3 months. This facility carries a mark-up at one month KIBOR plus 1.6% per annum and is secured by way of hypothecation charge over plant and machinery and current assets of the Company amounting to Rs. 266.67 million.

(Unaudited)

(Audited)

December 31,

June 30,

2025

2025

13.

TRADE AND OTHER PAYABLES

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

Creditors

216,262,153

225,924,067

Accrued liabilities

63,207,312

46,216,073

Payable to Provident Fund

514,460

1,784,338

Compensated absences

15,334,776

15,336,100

Workers' Profits Participation Fund

5,221

4,579

Workers' Welfare Fund

4,382,344

4,252,431

Security deposits

1,400,037

1,400,037

Withholding tax

686,764

513,148

Others

1,613,070

1,679,718

303,406,137

297,110,491

14.

SHORT-TERM FINANCING

Secured short-term running finance facilities

- Is lamic Finance

Under Istisna / Musawammah arrangement - note 14.1

-

4,870,000

Under Istisna cum Wakala arrangement - note 14.2

60,000,000

75,000,000

60,000,000

79,870,000

14.1

This represents finance facility under Istisna / Musawammah arrangement from Meezan Bank Limited amounting to Rs. 100 million (June 30, 2025: Rs. 100 million) which carries a profit rate of 6 months KIBOR plus 1% (June 30, 2025: 6 months KIBOR plus 1%) per annum. The facility is secured by way of hypothecation charge over present and future stocks and book debts with 25% margin respectively. Amount utilised as at December 31, 2025 is Rs. Nil (June 30, 2025: Rs. 4.87 million).

14.2

This represents finance facility under Istisna cum Wakala arrangement from Dubai Islamic Bank Pakistan Limited amounting to Rs. 75 million (June 30, 2025: Rs. 75 million) which carries a profit rate of 6 months KIBOR plus 2.25% (June 30, 2025: 6 months KIBOR plus 2.25%) per annum. The facility is secured by way of hypothecation charge over fixed assets and current assets of the Company amounting to Rs. 200 million. Amount utilised as at December 31, 2025 is Rs. 60 million (June 30, 2025: Rs. 75 million).

15.

CONTINGENCIES AND COMMITMENTS

15.1

Contingency

There have been no significant changes during the period in the contingencies reported in the annual audited financial statements for the year ended June 30, 2025, except as disclosed below:

During the year ended June 30, 2025, the Company received a sales tax demand of Rs. 8.4 million through order numbered BSTS/HUB/103/2024-25 dated June 16, 2025 from the Office of the Commissioner, Balochistan Revenue Authority (BRA) for the tax year 2019. The order was issued to the Company on account of alleged non-withholding of sales tax on various heads of expenses, as asserted by the representatives of the BRA.

Subsequent to the year end, the Company challenged the said order before the Appellate Tribunal of the BRA. The appellate proceedings were finalized, and a revised order was issued on November 25, 2025, whereby the sales tax demand was reduced to Rs. 0.84 million. The Company has paid the revised demand amount. Accordingly, the case now stands closed.

15.2

Commitments

The facilities for opening letters of credit and guarantees from banks as at December 31, 2025 amounted to Rs. 100 million (June 30, 2025: Rs. 200 million) and Rs. 7.26 million (June 30, 2025: Rs. 7.23 million) respectively of which unutilised at six months period ended was Rs. 91.19 million and 0.02 million (June 30, 2025: Rs. 200 million and Rs. 0.06 million) respectively.

Page-13

--------------(Unaudited)-------------

December 31,

December 31,

2025

2024

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

16.

REVENUE FROM CONTRACTS WITH CUSTOMERS

Gross Revenue

867,391,411

1,085,921,497

Less:

- Sales returns

(20,309,120)

(64,664,322)

- Sales tax

(132,350,863)

(166,280,711)

(152,659,983)

(230,945,033)

714,731,428

854,976,464

17.

COST OF SALES

Cost of goods manufactured

632,907,388

828,130,542

Opening stock of finished goods

85,979,127

131,096,150

Closing stock of finished goods

(66,462,595)

(158,325,019)

Cost of goods sold

652,423,920

800,901,673

--------------(Unaudited)-------------

December 31,

December 31,

2025

2024

18.

OTHER EXPENSES

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

Workers' Welfare Fund

129,913

-

19.

INCOME TAX EXPENSE

Current tax

- for the period - note 19.1

8,934,143

10,816,581

- prior period

699,687

566,033

9,633,830

11,382,614

Deferred tax

(1,050,408)

(2,291,179)

8,583,422

9,091,435

19.1

The Company has computed current tax for the period under section 113 of the Income Tax Ordinance, 2001 i.e. Minimum Tax.

--------------(Unaudited)-------------

December 31,

December 31,

20.

LOSS PER SHARE

2025

2024

- BASIC AND DILUTED

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

Loss after taxation attributable

to ordinary shareholders

(23,024,085)

(35,418,593)

Weighted average number of shares

in issue during the period

11,472,529

11,472,529

Loss per share - basic and diluted

(2.01)

(3.09)

Page-14

--------------(Unaudited)-------------

December 31,

December 31,

2025

2024

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

21.

CASH GENERATED FROM OPERATIONS

Loss before income tax expense

(14,440,663)

(26,327,158)

Adjustments for non-cash charges and other items

Depreciation

7,631,419

8,818,480

Employee benefits expense

786,489

994,576

Return on savings and deposit accounts

(2,215,537)

(2,938,285)

Dividend income

-

(862,500)

Mark-up on long-term financing

3,104,994

10,794,914

Gain on disposal of property,

plant and equipment

(698,645)

-

Mark-up on short-term financing

4,899,677

11,045,634

Provision for compensated absences

332,780

1,738,346

13,841,177

29,591,165

(599,486)

3,264,007

--------------(Unaudited)-------------

December 31,

December 31,

2025

2024

WORKING CAPITAL CHANGES

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

Decrease / (increase) in current assets

Stores, spare parts and loose tools

18,167,017

258,567

Inventories

(17,998,183)

55,948,252

Trade receivables

94,480,932

84,694,947

Loans and advances

(678,613)

5,099,853

Trade deposits and short-term prepayments

(5,771,011)

(8,824,924)

Other receivables

(2,072,249)

16,110,482

86,127,893

153,287,177

Increase / (decrease) in current liabilities

Trade and other payables

5,962,866

(45,117,256)

Advances from customers

32,531

3,569,197

91,523,804

115,003,125

22

RELATED PARTY DISCLOSURES

The following transactions were carried out with related parties during the period:

--------------(Unaudited)-------------

Relationship with the Company

Nature of transactions

December 31,

December 31,

2025

2024

Holding company:

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

- Millat Tractors Limited (MTL)

Sale of goods

706,463,114

824,177,914

Purchase of goods

-

208,370

Sales adjusted against

material receipt

135,953,092

15,477,174

Material received

62,900,500

137,034,658

Expenses incurred by MTL

on behalf of Company

500,691

442,208

Employee benefit funds:

- Provident fund

Contributions

2,647,420

2,721,665

- Executives' Gratuity Fund

Contributions

-

118,362

- Executives' Gratuity Fund

Benefits paid on behalf of the fund

435,226

-

Key management personnel:

Salaries and other employee benefits paid

32,406,524

28,300,013

(Unaudited)

(Audited)

December 31,

June 30,

23.

SHARIAH COMPLIANCE STATUS DISCLOSURE

2025

2025

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

Condensed interim statement of financial position - Liability Side

i)

Short-term financing as per Islamic mode 14

60,000,000

79,870,000

ii)

Mark-up accrued on conventional loan

1,305,897

2,381,682

iii)

Mark-up accrued on Islamic loan

1,141,733

1,506,885

Condensed interim statement of financial

positio - Asset Side

i)

Shariah-compliant bank balances

11

5,116,978

4,153,214

Page-15

----------------(Unaudited)---------------

December 31,

December 31,

2025

2024

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

Condensed interim statement of profit or loss

i)

Revenue earned from Shariah compliant

business segment

714,731,428

854,976,464

ii)

Profit on bank deposit - Islamic

143,296

-

iii)

Income on bank deposit - conventional

2,072,241

2,938,285

iv)

Profit paid on Islamic mode of financing

4,899,677

11,045,637

Break-up of other income excluding profits

in bank deposits

Shariah compliant income:

i)

Scrap sales

2,227,792

1,873,500

ii)

Gain on disposal of property, plant and

equipment

698,645

-

iii)

Dividend income

-

862,500

iv)

Miscellaneous income

79,577

369,374

Shariah non-compliant income:

i)

Income on term deposit receipts -

conventional

203,415

-

23.1

Relationship with Shariah-compliant financial institutions

Is lamic banks

The Company has facilities with Dubai Islamic Bank Pakistan Limited for Istisna cum Wakala, letter of guarantees and letter of credit amounting to Rs. 75 million, Rs. 3.4 million and Rs. 50 million respectively.

The Company has facilities with Meezan Bank Limited for Istisnah/Musawammah and letter of credit amounting to Rs. 100 million and Rs. 50 million respectively.

Takaful operators

The company has no relationship with takaful operators.

24.

DATE OF AUTHORISATION FOR ISSUE

These condensed interim financial statements were authorised for issue on February 12, 2026 by the Board

of Directors of the Company.

Chief Executive

Director

Chief Financial Officer

Page-16