Archroma Pakistan profit jumps 67% to Rs2bn

October 28, 2026 (MLN): Profit for the year of Archroma Pakistan Limited (PSX: ARPL) rose 66.58% year-on-year to Rs1.96bn for the year ended September 30, 2026, compared with Rs1.18bn in the preceding year.

Basic and diluted earnings per share (EPS) increased 66.58% to Rs56.72 from Rs34.05 in the previous year.

The growth came from higher sales, a 16% rise in gross profit, a one-off gain on remeasurement of the Sindh Infrastructure Development Cess payable and a 31% cut in finance costs. A near doubling of other operating expenses and a heavier tax charge partly offset the gains.

Gross sales grew 9.57% to Rs35.26bn from Rs32.18bn. Trade discounts and rebates rose 5.49% to Rs951.66m from Rs902.11m, and sales tax increased 11.98% to Rs4.34bn from Rs3.87bn. Net sales rose 9.36% to Rs29.97bn from Rs27.41bn.

Cost of sales grew at a slower pace of 7.27% to Rs22.31bn from Rs20.80bn, lifting gross profit 15.92% to Rs7.66bn from Rs6.61bn.

Distribution and marketing expenses increased 9.73% to Rs3.64bn from Rs3.32bn, while administrative expenses fell 2.25% to Rs977.09m from Rs999.58m. Impairment loss on trade receivables rose 37.97% to Rs12.27m from Rs8.89m, and other operating expenses nearly doubled to Rs225.85m from Rs117.30m.

As a result, operating profit climbed 29.54% to Rs2.81bn from Rs2.17bn.

The company booked a gain of Rs315.72m on remeasurement of the Sindh Infrastructure Development Cess payable, with no such item last year. Other income declined 17.13% to Rs185.70m from Rs224.07m.

Finance costs fell 31.05% to Rs310.33m from Rs450.05m, providing further relief.

Profit before levies and income taxes grew 54.47% to Rs3.00bn from Rs1.94bn. Levies declined 85.86% to Rs1.97m from Rs13.93m, taking profit before income taxes up 55.49% to Rs3.00bn from Rs1.93bn.

Income tax charge rose 38.08% to Rs1.04bn from Rs749.58m, which absorbed part of the gains and left profit for the year at Rs1.96bn.

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