Amreli Steels swings to Rs548m profit in FY26

September 16, 2026 (MLN): The Amreli Steels Limited (PSX: ASTL) swung to a net profit of Rs547.92m for the year ended June 30, 2026, reversing a loss of Rs3.81bn recorded in the corresponding period last year a complete earnings turnaround driven by an exceptional gain on debt restructuring and a substantial reduction in finance costs.

Showing this sharp recovery, the company's basic and diluted earnings per share (EPS) swung to Rs1.69 from a loss per share of Rs12.83 in FY25.

The top-line showed strong growth, with net sales rising 33% year-on-year to Rs21.34bn from Rs16.08bn in the prior year.

Cost of sales rose at a slower pace of 25% to Rs20.00bn, creating a meaningful positive differential with revenue growth and causing gross profit to surge to Rs1.34bn from just Rs76.01m last year more than seventeen fold a transformative improvement in gross margin performance.

On the expenditure side, distribution costs rose 23% to Rs672.02m, and administrative expenses increased 15% to Rs851.53m.

The allowance for expected credit losses swung to a charge of Rs117.39m from a reversal of Rs86.73m last year. Other expenses declined 9% to Rs484.35m.

Other income fell 63% to Rs218.91m from Rs592.80m. These combined movements kept the company in an operating loss position, though the operating loss narrowed significantly by 47% to Rs567.11m from Rs1.06bn.

Below the operating line, the two most consequential developments of the year unfolded. Finance costs declined sharply by 39% to Rs2.50bn from Rs4.10bn a saving of Rs1.60bn that provided meaningful relief.

More decisively, a gain on restructuring of long-term financing of Rs3.11bn absent in the prior year emerged as the single most transformative item of the period, swinging the pre-levy and pre-tax line from a loss of Rs5.16bn last year to a profit of Rs42.83m in the current year.

Levy rose 21% to Rs269.02m, pushing the position back into a loss before taxation of Rs226.18m though this was 96% narrower than the Rs5.39bn pre-tax loss recorded last year.

The tax line provided the final catalyst. Against a tax credit of Rs1.57bn in the prior period, the company recorded a tax credit of Rs774.10m in the current year though lower than the prior year credit, it was sufficient to absorb the remaining pre-tax loss and deliver the swing to a net profit of Rs547.92m for the full year.

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