ATRL sees profit cut by more than half in Q1FY26

October 28, 2025 (MLN): Attock Refinery Limited (PSX: ATRL) reported a profit after tax of Rs1.45bn for the quarter ended September 30, 2025, down 56% from Rs3.33bn in the corresponding quarter last year.

Earnings per share declined 56% to Rs13.62 compared to Rs31.22 in Q1FY25.

Gross sales decreased 19% year-on-year to Rs88.17bn from Rs109.45bn, reflecting weaker demand during the quarter.

Taxes, duties, levies, discount and price differential remained relatively flat, increasing marginally by 0.1% to Rs28.85bn from Rs28.83bn.

Net sales declined 26% to Rs59.31bn from Rs80.62bn in Q1FY25. Cost of sales decreased 26% to Rs58.38bn from Rs78.84bn.

Gross profit contracted 48% to Rs931.5m against Rs1.78bn in Q1FY25, with the gross margin declining to 1.6% from 2.2% in the prior year quarter, indicating compressed refining margins.

Administration expenses increased 4% to Rs448.1m, while distribution cost rose 12% to Rs26.8  m. Other charges declined 50% to Rs184m from Rs370.6m last year.

Other income declined 46% to Rs2.17bn from Rs4.05bn in the previous year. Net impairment reversal on financial assets increased 42% to Rs11.3m from Rs8m.

The company recorded an operating profit of Rs2.46bn, down 51% from Rs5.02bn in Q1FY25.

Finance cost (net) decreased 20% to Rs75.8m from Rs94.7m in the previous year.

Profit before income tax and final tax from refinery operations stood at Rs2.38bn, down 52% from Rs4.92bn in Q1FY25. Final taxes/levy declined 6% to Rs33.2m from Rs35.1m.

Profit before taxation from refinery operations decreased 52% to Rs2.35bn from Rs4.89bn in Q1FY25.

Taxation declined 52% to Rs894.8m from Rs1.86bn in the prior period.

Profit for the period from refinery operations stood at Rs1.45bn, down 52% from Rs3.03bn. The company reported income from non-refinery operations less applicable charges and taxation of Rs301.2 m in Q1FY25, which was absent in the current quarter.

The company concluded Q1FY26 with a net profit of Rs1.45bn, delivering a net profit margin of 2.4% compared to 4.1% in Q1FY25.

The profit decline was driven by lower sales volumes, compressed gross margins reflecting challenging refining economics, and significantly reduced other income, partially offset by lower operating expenses and finance costs.

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