K-Electric Limited

Company Overview

K-Electric Limited (PSX: KEL) is a Pakistani electricity utility incorporated on September 13, 1913, originally under the name Karachi Electric Supply Company Limited. The company adopted the name K-Electric Limited in January 2014 and is listed on the Pakistan Stock Exchange.

K-Electric operates across the electricity value chain, including generation, transmission and distribution. Its licensed service areas cover Karachi and surrounding locations in Sindh and parts of Balochistan. Its registered office is KE House, 39-B, Sunset Boulevard, Phase-II, Defence Housing Authority, Karachi.

The company operates under Pakistan's electricity-sector legal and regulatory framework, including the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997. Its business performance is closely linked to regulatory decisions, fuel and electricity procurement costs, consumer demand, collection of bills and investment in power infrastructure.

Sources: Official company profile and PSX company page.

Business Operations

K-Electric's principal operations cover three interconnected areas:

• Generation: Electricity produced through its own generation assets and power sourced from external producers.
• Transmission: Moving electricity through high-voltage infrastructure and grid stations.
• Distribution: Delivering electricity to residential, commercial, industrial and other consumers within its licensed areas.

The company's vertically integrated structure provides exposure to multiple stages of electricity supply. However, it also means that operating performance can be affected by fuel availability, power-purchase costs, technical and commercial losses, equipment maintenance, infrastructure investment and the timing of regulatory tariff decisions.

Financial Performance and Reporting Caution

The PSX financial table currently displays the following annual figures, with amounts originally reported in thousands of rupees except EPS:

Financial metric	FY2024	FY2023
Sales	Rs614.97 billion	Rs519.47 billion
Profit/(loss) after taxation	Rs4.13 billion	Loss of Rs39.39 billion
Earnings per share	Rs0.15	Loss per share of Rs1.43

These figures are based on the historical financial information displayed on the PSX company page. They should not be treated as a substitute for more recent audited results.

Reporting-status note: In May 2026, K-Electric's rating agency reported that the relevant authority had advised the company to submit its FY2024 and FY2025 annual financial statements by June 30, 2026. PSX also recorded an application for an extension to hold the AGM in October 2026. The latest available official filings should be checked to determine whether the statements and AGM requirements have since been resolved.

Sources: PSX financials and announcements and VIS rating announcement.

Shariah Compliance Status

K-Electric Limited was classified as Compliant in the PSX-KMI All Share Index recomposition notice dated May 29, 2026, based on accounts as of December 31, 2025.

The notice reported the following screening ratios:

• Debt ratio: 25.92%
• Non-compliant investment ratio: 2.30%
• Non-compliant income ratio: 0.74%
• Illiquid assets ratio: 58.58%

These ratios relate to the specific review period and the screening methodology then in force. PSX announced revised screening criteria in February 2026, with implementation planned from the November 2026 recomposition based on June 2026 accounts. Investors should therefore recheck the latest official Shariah list when the new recomposition becomes effective.

Sources: Official PSX-KMI recomposition notice and PSX notice on revised screening methodology.

Key Risks to Consider

Financial reporting and governance: Delayed financial statements and AGM-related extensions warrant careful review of the latest PSX announcements and company disclosures.

Regulatory risk: Allowed tariffs, regulatory benchmarks and the multi-year tariff framework can materially affect operating returns and cash flows.

Fuel and power-purchase costs: Changes in fuel prices, electricity procurement costs and the availability of energy supplies can affect the cost of serving customers.

Receivables and cash flow: Delayed bill collections and outstanding balances can increase working-capital requirements and financing pressure.

Distribution losses and operations: Technical losses, electricity theft, infrastructure condition and collection performance can influence financial outcomes.

Capital expenditure: Maintaining and expanding generation, transmission and distribution assets requires substantial investment.

Shariah screening changes: Compliance should be reconfirmed through the latest official PSX-KMI screening publication rather than assumed to remain unchanged indefinitely.

Credit Ratings and Infrastructure Investment

In June 2026, PACRA maintained K-Electric's entity ratings at AA for the long term and A1+ for the short term, with a stable outlook and a rating watch noted in the report. The rating rationale discusses the company's cash flows and the importance of regulatory outcomes under the multi-year tariff framework.

K-Electric has also outlined long-term investment plans for its transmission and distribution network. Investors should assess announced investment plans alongside the company's financing capacity, regulatory approvals, implementation progress and actual cash-flow performance.

Sources: PACRA rating report and K-Electric official website.

How Investors Can Research KEL

Before evaluating K-Electric shares, review the latest audited annual report, quarterly statements, PSX announcements, regulatory tariff decisions, receivables, cash-flow statement, financing obligations and progress on infrastructure investment. Compare financial performance across several periods and distinguish reported earnings from cash generated by operations.

The company's Shariah screening status is one part of the research process; it does not remove regulatory, financial, operational or market risks.

Official Resources

• PSX company profile, financials and announcements
• K-Electric official company profile
• Investor information
• Financial reports and statements
• PSX Shariah-compliant investment resources

This profile is for company research and investor education. Historical financial results and Shariah screening classifications do not guarantee future performance or continued compliance.