GCIL FY26 profit surges 44%

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MG News | September 28, 2026 at 11:56 AM GMT+05:00

September 28, 2026 (MLN): Ghani Chemical Industries Limited (PSX: GCIL) reported a 44% surge in its consolidated net profit for the fiscal year ended June 30, 2026, reaching Rs2.87bn compared to Rs1.99bn (restated) in the preceding year.

Reflecting this solid bottom-line growth, basic and diluted earnings per share (EPS) for the year improved to Rs5.03, up from Rs3.87 in FY25.

Profit after taxation from continuing operations stood at Rs2.87bn (continuing EPS of Rs5.03), while loss from discontinued operations accounted for a negligible Rs329 thousand.

The primary catalysts behind the strong financial performance were net revenue expansion, effective cost of sales management, and a 30% expansion in gross profit.

Gross sales grew by 11% to Rs9.74bn. After deducting sales tax of Rs1.46bn, net sales rose 11% year-on-year to Rs8.28bn, up from Rs7.44bn in FY25.

Coupled with a 4% decline in cost of sales (Rs3.86bn), gross profit expanded significantly to Rs4.42bn compared to Rs3.41bn in the prior year.

On the operational front, overheads increased to support commercial scale and distribution reach.

Distribution costs surged 192% to Rs600.82m, administrative expenses rose 25% to Rs359.20m, and other expenses dropped 12% to Rs199.03m.

Operational expenses were partially cushioned by a 27% boost in "other income" (Rs501.05m), driving profit from operations up 22% to Rs3.76bn.

Below the operating line, GCIL absorbed higher debt servicing outlays.

Finance costs expanded by 25% to Rs566.72m (up from Rs453.02m in FY25). However, strong gross margin momentum pushed profit before taxation up 21% to Rs3.18bn (after deducting statutory minimum and final tax levies of Rs17.47m).

The company benefited from a 51% reduction in corporate taxation charges, which fell to Rs312.69m for the year (down from Rs642.47m in FY25).

Supported by 11% top-line revenue growth, 30% gross margin expansion, and reduced tax outlays, Ghani Chemical Industries Limited securely closed the fiscal year with its net profit reaching Rs2.87bn.

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED JUNE 30, 2026 (Rs.000)

Description

2026

2025

change %

Sales

9,743,078

8,739,189

11.5%

Less: sales tax

(1,463,286)

(1,303,769)

12.2%

Sales - net

8,279,792

7,435,420

11.4%

Cost of sales

(3,858,357)

(4,023,390)

-4.1%

Gross profit

4,421,435

3,412,030

29.6%

Distribution cost

(600,821)

(205,483)

192.4%

Administrative expenses

(359,198)

(287,541)

24.9%

Other expenses

(199,030)

(225,100)

-11.6%

Other income

501,054

394,196

27.1%

Profit from operations

3,763,440

3,088,102

21.9%

Finance cost

(566,715)

(453,021)

25.1%

Share of profit from Associated Companies

2,616

15

17340.0%

Profit before taxation, minimum and final tax levies

3,199,341

2,635,096

21.4%

Minimum and final tax levies

(17,467)

(1,811)

864.5%

Profit before taxation

3,181,874

2,633,285

20.8%

Taxation

(312,692)

(642,473)

-51.3%

Profit after taxation from continuing operations

2,869,182

1,990,812

44.1%

Loss for the year from discontinued operations - net of tax

(329)

-

Profit for taxation for the year

2,868,853

1,990,812

44.1%

Earnings per share (Rupees)

5.03

3.87

30.0%

 

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