GCWL closes FY26 with 7% loss in profit

September 28, 2026 (MLN): Ghani Chemworld Limited (PSX: GCWL) reported a 7% dip in its net profit for the fiscal year ended June 30, 2026, recording Rs67.39m compared to Rs72.74m (restated) in the preceding year.

Reflecting this profit moderation alongside changes in the share capital base, basic and diluted earnings per share (EPS) for the year stood at Rs0.27, compared to Rs1.40 in FY25.

During FY26, the company commenced commercial sales, generating revenue from contracts with customers of Rs312.36m.

However, initial operational ramp-up costs resulted in a cost of sales of Rs451.29m, leading to a gross loss of Rs138.92m.

On the operational front, overheads expanded as commercial activity scaled up.

Administrative and general expenses rose 30% to Rs16.80m (up from Rs12.92m in FY25), selling and distribution expenses stood at Rs5.98m, and other operating expenses recorded at Rs4.99m.

Although "other income" surged multi-fold to Rs2.11m (from Rs2,346 in FY25), operating loss expanded to Rs164.59m.

Below the operating line, GCWL incurred finance costs of Rs120.05m.

However, core operating and debt overheads were completely offset by a massive 4.1x surge in the share of profit from an Associated Company, which jumped to Rs352.04m (up from Rs85.65m in FY25).

With zero tax or statutory levy outlays recorded for the period, strong associate returns allowed Ghani Chemworld Limited to absorb commercial startup losses and close the fiscal year with a net profit of Rs67.39m.

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