Lahore: Wahdat Poultry Farm has reported robust financial growth in its first year as a listed entity, with significant plans for expansion, according to its annual report for the fiscal year 2026. The company raised Rs900 million through its initial public offering (IPO), with Rs846.4 million in net proceeds, and has utilized Rs407.8 million to establish a new pasteurization plant, strengthen working capital, and settle existing debts.

According to JS Global, Wahdat plans to commence operations at its new pasteurization plant by March 2027. The facility aims to diversify the company's product portfolio beyond shell eggs to include pasteurized liquid egg products, targeting bakeries, food manufacturers, and food-service customers. This expansion is expected to create opportunities to penetrate the Gulf Cooperation Council (GCC) and other international markets.

In FY26, Wahdat's production of laying flock reached 452,437 birds, surpassing its installed capacity of 430,000 birds. The company's revenue increased to Rs3.0 billion, marking a 19.5% compound annual growth rate (CAGR) over FY21-FY26, and profitability rose by 26.6% year-on-year to Rs306.3 million. Operating profit grew by 26.5% to Rs446.4 million, with a notable improvement in the operating margin to 14.9% from 12.6%.

The report highlights that branded eggs accounted for a substantial 97% of total revenue. However, export revenue from the UAE declined by 42.8% to Rs250.5 million, and there were no exports to Qatar after FY25. The cash conversion cycle increased to 94 days from 88 days, reflecting a longer working capital cycle due to higher receivable and inventory days.

The company's total assets rose by 46.5% to Rs3.75 billion, with equity increasing by 75.2% to Rs2.68 billion, driven by the IPO proceeds. Cash and bank balances also saw a significant rise to Rs513.4 million from Rs40.7 million in FY25. Despite the growth, free cash flow to the firm stood at negative Rs240.5 million, primarily due to investment in expansion projects.

FY26 marked a year of financial transformation for Wahdat Poultry Farm, with no dividends paid as profits were retained to support growth initiatives. The company is currently trading at a price-to-earnings ratio of 15.4x for FY26.