FCL 1QFY27 profit drops 21%

October 28, 2026 (MLN): Fast Cables Limited (PSX: FCL) recorded a 21% decline in its net profit for the first quarter ended September 30, 2026 (1QFY27 / 3MFY27), posting Rs305.18m compared to Rs387.64m in the corresponding period of the previous fiscal year.

Reflecting the compressed bottom line, basic and diluted earnings per share (restated) contracted 22% to Rs0.47 for the three-month period, down from Rs0.60 reported in 3MFY26.

Top-line revenue saw modest expansion, growing 4% to Rs9.01bn from Rs8.64bn in the same period last year.

Cost of revenue rose 5% to Rs7.50bn against Rs7.16bn, allowing gross profit to inch up 2% to Rs1.52bn compared to Rs1.48bn in 3MFY26. The gross margin remained steady at 16.81% relative to 17.13% in the prior-year period.

On the operational side, profitability was pressured by higher distribution expenses. Distribution costs surged 49% to Rs469.09m from Rs315.38m, while administrative expenses were tightly managed, declining 3% to Rs154.73m.

Total operating overheads rose 32% to Rs623.82m. This increase in operational overheads resulted in an 11% contraction in operating profit, which settled at Rs891.20m compared to Rs1.01bn in the comparative quarter.

Below the operating line, earnings faced further headwinds from finance costs, which rose 15% to Rs425.23m from Rs369.46m.

Other operating expenses declined 17% to Rs76.93m, while other income dropped 5% to Rs106.19m. Consequently, profit before taxation fell 24% to Rs495.24m compared to Rs655.89m.

Despite a 29% lower tax expense of Rs190.06m, Fast Cables Limited concluded the first quarter with a net profit of Rs305.18m.

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