HASCOL posts massive turnaround in Q1CY26

April 30, 2026 (MLN): Hascol Petroleum Limited (PSX: HASCOL) reported a spectacular financial turnaround for the first quarter ended March 31, 2026, posting a net profit of Rs448.97m. This marks a massive recovery from the heavy net loss of Rs3.10bn recorded in the corresponding period last year.

Reflecting this dramatic bottom-line recovery, the company's basic and diluted earnings per share (EPS) turned positive, reaching Rs0.45 compared to a loss per share of Rs3.11 in Q1 2025.

The core driver behind this impressive return to profitability was a significant expansion in gross margins driven by lower direct costs.

While HASCOL’s net revenue saw a modest 2% year-on-year increase, inching up to Rs48.52bn from Rs47.50bn, the cost of products sold actually declined by 3% to Rs45.40bn.

Because the company effectively lowered its direct costs while maintaining top-line stability, its gross profit skyrocketed by an exceptional 4.8x, reaching Rs3.12bn compared to just Rs649.53m in the prior year.

On the operational front, HASCOL executed rigorous cost-cutting measures. Distribution and marketing expenses were slashed by 15% to Rs962.07m, while administrative expenses dropped by 20% to Rs277.89m.

Furthermore, the company received a massive boost from "other income," which surged by 7.6x to Rs327.32m. Propelled by the soaring gross profit, reduced overheads, and surging secondary income, the company posted a strong operating profit of Rs2.21bn, a complete turnaround from the Rs808.01m operating loss suffered in the same period last year.

Below the operating line, the company also found relief from currency fluctuations. HASCOL booked a net exchange gain of Rs59.74m, a sharp positive reversal from the severe Rs350.68m exchange loss recorded in Q1 2025. Finance costs, while still a heavy burden, dipped slightly by 4% to Rs1.68bn.

Supported by the operational turnaround and favorable exchange dynamics, the profit before income tax from continuing operations stood at Rs444.28m. Adding a minor Rs4.69m net profit from discontinuing operations, Hascol Petroleum successfully closed the three-month period with its total net profit at Rs448.97m, definitively stepping out of the red.

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