Archroma Pakistan posts 47% profit growth in 9MFY26

July 28, 2026 (MLN): Archroma Pakistan Limited (PSX: ARPL) recorded a robust 47% increase in its net profit for the nine months ended June 30, 2026, with profit for the period climbing to Rs1.34bn from Rs913.91m in the corresponding period last year.

Showing this strong bottom-line growth, the company's earnings per share (EPS) expanded to Rs38.86 from Rs26.44 in 9MFY25.

The top-line showed steady growth, with gross sales rising 5% year-on-year to Rs26.40bn from Rs25.15bn.

After accounting for trade discounts, rebates, and sales tax, net sales posted a 4% increase to Rs22.47bn from Rs21.51bn in the prior period.

Cost of sales remained virtually flat, rising just 0.11% to Rs16.46bn, allowing gross profit to expand meaningfully by 19% to Rs6.00bn from Rs5.06bn a testament to improved cost management and a favorable input cost environment.

On the expenditure side, distribution and marketing expenses rose 5% to Rs2.77bn, while administrative expenses were trimmed by 5% to Rs719.42m, showing disciplined cost control.

Impairment loss on trade receivables increased to Rs9.41m from Rs5.24m, and other operating expenses rose 61% to Rs167.88m.

In aggregate, the operating expenditure subtotal edged up 4% to Rs3.66bn. These dynamics combined to deliver a sharp 51% surge in operating profit to Rs2.34bn from Rs1.55bn last year.

Below the operating line, other income declined 40% to Rs122.52m from Rs202.77m. Despite this, the operating subtotal including other income rose 41% to Rs2.47bn.

Finance costs fell sharply by 39% to Rs251.90m from Rs415.69m, providing a meaningful tailwind and pushing profit before minimum, final, and income taxes up 66% to Rs2.21bn.

The minimum and final taxes charge dropped substantially by 75% to Rs65.59m from Rs261.05m, lifting profit before income tax to Rs2.15bn nearly double the Rs1.08bn recorded in the same period last year, a gain of 100%.

The factor that moderated the bottom-line expansion was a significantly higher income tax charge. Income tax surged to Rs804.34m from Rs161.19m in 9MFY25 a near fivefold increase absorbing a portion of the pre-tax gains.

Despite this, the strong operational performance and lower finance costs were sufficient to deliver a 47% increase in profit for the period.

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