Pakistan Refinery Limited
By PSX Investors Zone · Updated October 16, 2026
Pakistan Refinery Limited (PRL) is a Pakistan Stock Exchange-listed oil refining company and a subsidiary of Pakistan State Oil Company Limited. Established in 1960, PRL processes crude oil into petroleum products used in transportation, industry and other sectors. Its financial performance depends on refinery margins, crude oil and petroleum product prices, local demand, inventory movements, energy costs and financing expenses. PRL reported a return to annual profitability in FY2026 after a loss in FY2025. Investors should assess whether this improvement is sustainable and verify the company’s latest financial disclosures and official Shariah-screening status.
Company Overview
Pakistan Refinery Limited (PRL) is a Pakistan Stock Exchange-listed petroleum refining company established in 1960. It processes crude oil into refined petroleum products and is a subsidiary of Pakistan State Oil Company Limited (PSO).
PRL operates its main refinery at Korangi Creek in Karachi and a crude oil terminal at Keamari. Its official website reports a processing capacity of approximately 50,000 barrels per day. The company is also undertaking a Refinery Expansion and Upgrade Project (REUP) intended to improve product quality and operational capabilities.
Sources: PRL official company overview | PSX company profile
Business Model
PRL earns revenue from processing crude oil and selling petroleum products. Its financial performance depends on several factors:
- Refinery margins: The difference between the value of refined products and the cost of crude oil and processing.
- Crude oil supply: Availability, quality, pricing and procurement terms.
- Product demand: Domestic demand for diesel, petrol and other refined products.
- Inventory movements: Changes in crude oil and finished-product prices can affect reported results.
- Operating costs: Energy, maintenance, transportation and other refinery expenses.
- Financing costs: Borrowings and working-capital requirements can significantly influence profitability.
- Refinery upgrades: Capital expenditure and project execution can affect future operating capacity, costs and cash flow.
Fundamental Analysis
Annual Financial Performance
The following figures are taken from the financial data displayed on the PSX company profile. Amounts are in Pakistani rupees.
| Financial metric | FY2026 | FY2025 |
|---|---|---|
| Sales | Rs. 350.839 billion | Rs. 310.351 billion |
| Profit after tax | Rs. 15.780 billion | Loss of Rs. 4.660 billion |
| Earnings per share (EPS) | Rs. 25.05 | Loss per share of Rs. 7.40 |
| Gross profit margin | 9.23% | 0.60% |
| Net profit margin | 4.50% | -1.50% |
What the figures indicate: Sales increased by approximately 13% in FY2026, and the company moved from a loss to a profit. Its reported gross and net profit margins also improved significantly. However, one profitable year does not guarantee that earnings will remain at the same level.
Investors should examine the annual report for details on refinery margins, inventory effects, finance costs, operating cash flow and any non-recurring gains or losses.
Financial-data note: PSX warns that its standardized financial data may differ from figures in the company's original financial statements. Use the original audited annual report for detailed analysis.
Sources: PSX PRL financial profile | PRL financial reports
Latest Quarterly Performance
PSX displays the following quarterly figures for FY2026:
| Financial metric | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 |
|---|---|---|---|
| Sales | Rs. 61.665bn | Rs. 75.340bn | Rs. 97.391bn |
| Profit after tax | Rs. 1.016bn | Rs. 1.121bn | Rs. 9.943bn |
| EPS | Rs. 1.61 | Rs. 1.78 | Rs. 15.78 |
The reported third-quarter profit was much higher than the preceding quarters. Investors should investigate the original quarterly report to understand the factors behind this change and whether the results include unusual or non-recurring items.
Source: PSX PRL financial profile
Share Price and Valuation
The PSX profile displayed the following market information on October 16, 2026:
| Market metric | Reported value |
|---|---|
| Share price | Rs. 106.95 |
| P/E ratio (TTM) | 4.27 |
| 52-week high | Rs. 108.80 |
| 52-week low | Rs. 23.20 |
These are historical market figures for the stated date, not live prices. Update them before publishing if your CMS displays current valuation data.
A low P/E ratio does not automatically mean that a share is undervalued. For a refinery, investors should consider whether earnings are sustainable across different refining cycles, as well as capital expenditure, debt, cash flow and future operating requirements.
Source: Official PSX PRL profile
Dividend Information
Do not assume that PRL will pay a dividend because it returned to profitability in FY2026. Confirm the latest Board recommendation, official PSX payout announcement, dividend per share and entitlement dates before publishing a dividend figure or yield.
Sources: PSX PRL announcements | PRL financial reports
Shariah Compliance Status
Current status: Verify before publishing a definitive compliance claim.
PRL submitted Shariah-related disclosures for the financial year ended June 30, 2026. These disclosures identify conventional and Shariah-compliant components of selected financial balances and income. However, a company's Shariah disclosure is not, by itself, confirmation that its listed shares have passed the latest PSX-KMI screening.
PSX announced revisions to its KMI screening methodology in February 2026, including a change to the interest-bearing debt threshold and a new compliance-rating mechanism. The Exchange stated that the revised criteria would be implemented from the November 2026 recomposition based on June 2026 annual or half-yearly accounts.
Before marking PRL as Shariah-compliant on PSX Investors Zone, check the latest applicable official PSX-KMI list and effective date. Do not infer compliance solely from PRL's relationship with Shariah-compliant financial institutions or from the existence of its Shariah disclosure.
Sources:
- PRL Shariah-related disclosure for FY2026
- PSX revision of KMI Shariah-screening methodology
- PSX Shariah-compliant investment information
Refinery Expansion and Upgrade Project
PRL's Refinery Expansion and Upgrade Project (REUP) is a significant strategic development. Investors should monitor official updates on project approval, financing, construction progress, expected completion, capacity changes and the effect on future cash flow.
Large refinery projects can require substantial investment and may expose the company to execution delays, cost overruns, financing requirements and changes in market conditions. Do not treat projected benefits as achieved results until supported by company disclosures.
Source: PRL official website
Key Risks for Investors
- Refinery-margin volatility: Refining profitability can change substantially with crude oil and product prices.
- Earnings volatility: FY2025 recorded a loss, while FY2026 returned to profitability.
- Financing costs: Borrowing costs may absorb a significant portion of operating earnings.
- Working-capital pressure: Crude oil purchases and inventory requirements can increase funding needs.
- Capital expenditure: The refinery upgrade project may require substantial investment.
- Regulatory and environmental requirements: Refinery operations are exposed to safety, environmental and petroleum-sector regulations.
- Shariah-screening changes: Listed-share status must be checked against the current official screening publication.
What Investors Should Monitor
- Quarterly refinery margins and profit trends.
- Crude oil and refined-product price movements.
- Operating cash flow, borrowings and finance costs.
- Progress and financing of the Refinery Expansion and Upgrade Project.
- Official dividend and material-information announcements.
- The latest PSX-KMI screening notice and its effective date.
Frequently Asked Questions
What does PRL do?
Pakistan Refinery Limited processes crude oil and produces petroleum products. It is a subsidiary of Pakistan State Oil Company Limited.
Was PRL profitable in FY2026?
Yes. PSX's standardized financial profile reports FY2026 profit after tax of approximately Rs. 15.78 billion and EPS of Rs. 25.05.
Does a low P/E ratio mean PRL is cheap?
Not necessarily. Refinery earnings can fluctuate sharply, so valuation should be considered alongside sustainable earnings, debt, cash flow and capital expenditure.
Is PRL Shariah-compliant?
Verify the latest official PSX-KMI screening list before making a definitive claim. PRL's Shariah-related disclosure alone does not establish its current screening status.
Where can I find PRL's official reports?
Visit the PRL financial reports page or its PSX company profile.
Disclaimer
This profile is for educational and informational purposes only. It is not a recommendation to buy or sell PRL shares and does not promise profits or investment outcomes. Financial information, market prices, dividends, regulatory notices and Shariah-screening results should be verified from the latest official sources before making an investment decision.
This profile is for educational purposes and is not a recommendation to buy or sell any security.