Zal: Zarea Limited (ZAL), a rapidly expanding player in the B2B e-commerce sector for commodities, reported significant financial growth during a recent corporate briefing. The company's revenue increased by 2.7 times year-on-year, reaching Rs805 million for the first nine months of fiscal year 2025. Net profit also saw an impressive rise, climbing 131% to Rs454 million during the same period.

ZAL's strategic plans for fiscal year 2025 include an ambitious revenue growth target of 150% year-on-year, with expectations for 120-130% growth in fiscal year 2026. The company’s services include credit access for buyers, global trade facilitation, data analytics, and logistics and warehousing solutions.

The company’s revenue is derived from platform usage fees and the sale of commodities through its platform. Its diverse clientele spans paper manufacturers, power and cement plants, chemical industries, and various mills, along with corporate farms, builders, contractors, and retail outlets.

Following a successful Initial Public Offering (IPO), ZAL raised Rs1.03 billion, with Rs988 million remaining after expenses. So far, Rs46 million has been utilized, leaving Rs942 million available for further investment. The company plans to allocate 12.5% of the IPO proceeds to enhance its technology infrastructure. This includes the introduction of machine learning, AI assistants, and price forecasting algorithms, alongside an improved digital dashboard for clients.

ZAL is currently trading at a discount compared to both local and regional peers, with a projected price-to-earnings ratio for fiscal year 2025 at 6.8 times, significantly lower than other tech sector companies. The board intends to maintain a non-binding dividend payout ratio of 20-30% of annual net profits.