Zarea Limited (PSX: ZAL) was incorporated in Pakistan in 2020 and currently registered as a public limited company. ZAL converted into a public limited company in April 2024 and got listed on the Pakistan Stock Exchange in February 2025.
The company has a model of B2B e-commerce marketplace connecting buyers and sellers for commodity trade. The company uses technology to enable sustainable and eco-friendly sourcing.
Pattern of Shareholding
As of June 30, 2025, ZAL has a total of 262.500 million shares outstanding which are held by 3570 shareholders. Sponsors, Directors, CEO and children have the majority stake of 41.90 percent in the company followed by associated companies holding 34.29 percent shares.
Local general public accounts for 11.98 percent shares of ZAL while foreign general public holds 4.37 percent shares. The remaining shares are held y other categories of shareholders.
Financial Performance (2025)
ZAL’s topline tremendously improved to the tune of 204 percent in 2025 to clock in at Rs.1342.93 million. The company has two sources of income i.e. platform usage fee and sale of agricultural commodities – both of which posted splendid growth in 2025.
During the year, the company expanded its product offering by including industrial, agricultural and energy related commodities. It also started cross border trade of commodities in 2025.
However, stronger topline didn’t buttress the margins of the company as its cost surged by 585.53 percent during the year due to higher cost of agricultural commodities, salaries expense and amortization expense incurred.
Gross profit improved by 43.13 percent in 2025, however, GP margin fell from 70.34 percent in 2024 to 33.12 percent in 2025.
Administrative expense surged by 197.56 percent in 2025 on the back of higher payroll expense, directors’ remuneration, legal & professional charges, fee & subscription charges, general office expense as well as software maintenance expense incurred during the year.
In 2025, ZAL expanded its workforce from 29 employees in 2024 to 62 employees in 2025.
Marketing expense also escalated by 161.87 percent in 2025. This mainly comprised of advertising expense and salaries of sales force incurred during the year. The company recorded realized gain worth Rs.359.207 million in 2025 versus realized loss of Rs.6.975 million recorded in the previous year.
This resulted in 995.36 percent boost in other income in 2025. ZAL recorded 131 percent growth in its operating profit in 2025 with OP margin clocking in at 50.21 percent versus OP margin of 66 percent recorded in 2024. The company had not acquired any external financing in the previous year.
However, it obtained a long-term loan of Rs.41.374 million in 2025 which led to 4055.80 percent spike in its finance cost. Gearing ratio was recorded at 1.79 percent in 2025 versus 0 percent in the previous year.
Net profit strengthened by 129.18 percent to clock in at Rs.671.05 million in 2025.
This translated into EPS of Rs.1.04 in 2025 versus EPS of Rs.3.99 recorded in the previous year.
Lower EPS was due to the issuance of 62.50 million shares during the year through IPO. This took the company’s outstanding shares from 200 million in 2024 to 262.50 million in 2025. NP margin dipped from 66.28 percent in 2024 to 50 percent in 2025.
Recent Performance (1QFY26)
ZAL is making great strides as evident by 308.45 percent year-on-year growth recorded in its topline in 1QFY26. Its revenue clocked in at Rs.783.59 million in 1QFY26. The growth was mainly driven by sale of agricultural commodities during the period while platform usage fee took a slight dip.
As the company charges platform usage fee for each transaction, lower platform fee and higher sales reflect lesser but higher volume transactions. Gross profit improved by 92.23 percent in 1QFY26, however, GP margin deteriorated from 62.78 percent in 1QFY25 to 29.55 percent in 1QFY26. This is because the company is in the phase of capacity building to enhance its operational efficiency.
Administrative and marketing expense also escalated by 202.40 percent and 324.73 percent during the period due to workforce expansion and cutthroat marketing drives undertaken during the year. Other income mounted by 5261.27 percent in 1QFY26 to clock in at Rs.401.60 million. This is due to considerable increase in the company’s short-term investment portfolio which generated encouraging returns during the period.
Operating profit grew by 418.95 percent in 1QFY26 with OP margin clocking in at 71.44 percent versus OP margin of 56.23 percent recorded in 1QFY25. Increased long-term financing resulted in 6905.21 percent spike in finance cost in 1QFY26 which clocked in at Rs.1.61 million. ZAL posted 417.56 percent growth in its net profit which clocked in at Rs.558.177 million in 1QFY26. This translated into EPS of Rs.2.13 in 1QFY26 versus EPS of Rs.0.54 posted in 1QFY25. NP margin jumped up from 56.22 percent in 1QFY25 to 71.23 percent in 1QFY26.
Future Outlook
Recovery in macroeconomic indicators as well as increasing demand for sustainable supply chain solution will provide immense support to ZAL. The company is constantly developing its product portfolio as well as geographical footprint to diversify its revenue stream. Moreover, the company is also enhancing its operational efficiency by investing in its own logistics arm in order to reduce its dependence on third parties and enhance delivery efficiency.
It is also improving its digital platform by adding new features and functionalities to increase transaction volumes and effectiveness. ZAL also entered into processing and packaging of commodities to increase their shelf life.
The company has setup various collection centers across Punjab and KPK with plans to setup more centers to strengthen its supply chain and expedite order completion.
Besides, ZAL has also established an import division to cater to the local demand of commodities not available in Pakistan. This multi-pronged and proactive strategy adopted by the company along with better macroeconomic conditions will greatly support its financial performance in the coming times.