HTL FY26 profit nearly 5x to Rs473m, declares Rs1.15 dividend

September 21, 2026 (MLN): Hi-Tech Lubricants Limited (PSX: HTL) posted a stellar performance for the year ended June 30, 2026, with its consolidated profit after taxation nearly quintupling to Rs472.96m from Rs101.81m in the corresponding period last year.

Showing this exceptional bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs3.40 from Rs0.73 in FY25.

The Board of Directors has declared a final cash dividend of Rs1.15 per share (11.5%) for the year ended June 30, 2026.

The top-line showed healthy growth, with gross revenue from contracts with customers rising 13% year-on-year to Rs41.13bn from Rs36.38bn.

After accounting for discounts which nearly doubled to Rs954.65m from Rs500.53m and sales tax, which rose 10% to Rs2.60bn, net revenue posted a 12% increase to Rs37.58bn from Rs33.51bn in the prior year.

Cost of sales rose at a slightly slower pace of 11% to Rs33.92bn, allowing gross profit to expand by 19% to Rs3.67bn from Rs3.08bn showing improved margin management despite the competitive cost environment.

On the expenditure side, distribution cost rose 6% to Rs1.32bn, and administrative expenses held broadly stable, edging up just 2% to Rs1.06bn. Other expenses rose 47% to Rs208.61m from Rs142.26m.

Other income grew 13% to Rs311.39m from Rs275.14m. These combined movements drove profit from operations up 51% to Rs1.39bn from Rs917.42m.

Below the operating line, finance cost declined 17% to Rs492.04m from Rs595.00m a meaningful tailwind that, combined with the strong operating profit growth, pushed profit before levy and taxation to nearly triple at Rs895.85m from Rs322.43m.

The standout development that amplified the earnings recovery was a near-total elimination of the levy burden.

Levy declined 94% to just Rs10.57m from Rs171.65m in the prior year a saving of over Rs161m propelling profit before taxation to nearly six times the prior year level at Rs885.28m from Rs150.77m.

Taxation, however, surged to Rs412.32m from just Rs48.97m more than eightfold showing the substantially higher profitability base and absorbing a significant portion of the pre-tax gains.

Despite this dramatically higher tax charge, the exceptional operational recovery and near-elimination of levy were more than sufficient to deliver the nearly fivefold increase in profit after taxation for the full year.

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