FEROZ kicks off FY26 with a healthy dose of growth

October 27, 2025 (MLN): Ferozsons Laboratories Limited (PSX: FEROZ) has kicked off the first quarter ended September 30, 2025, on a strong note as it posted a significant surge in profitability and an improvement in key operating margins.

The company's Profit after taxation rose sharply by 33.58% to Rs321.95 million, up from Rs241.02m in the comparable period last year.

This result translated into higher returns for shareholders, with Earnings per share (EPS) climbing by 17.36% to Rs5.95 from Rs5.07.

The modest increase in the Net Profit Margin to 5.42% (from 5.32% last year) indicates that the company effectively managed to translate its significant sales growth into a slightly more efficient bottom line.

Net revenue was the primary growth engine, soaring by 31.14% to Rs5.94 billion from Rs4.53bn a year ago.

Gross profit jumped by 40.82% to Rs2.61bn. This growth allowed the company to significantly improve its manufacturing efficiency, reflected in a 3.02 percentage point gain in the Gross Profit Margin, which reached 43.94% (up from 40.92%).

Despite the strong gross performance, the company's operating expenses saw considerable increases, particularly in its market outreach.

Selling and distribution expenses accelerated rapidly, increasing by 59.25% to Rs1.68bn, highlighting aggressive investment in market penetration and promotion.

Administrative expenses increased at a more modest pace of 27.68% to Rs287.84m.

Ferozsons was also aided by a nearly 91% increase in Other income, which grew to Rs51.7m.

Overall, Profit from operations increased by a healthy 16.03% to Rs643.2m.

A major factor contributing to the significant jump in pre-tax profit was the substantial reduction in Finance cost, which fell by 46.01% to Rs104.69m.

This reduction, likely due to lower debt or declining interest rates, helped push Profit before income tax up by 53.05% to Rs530.8m.

However, the final profit was impacted by a near-doubling of the Income tax expense, which rose by 97.08% to Rs208.85m.

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