Hi-Tech Lubricants' Q1FY26 profit surges to Rs107m

October 28, 2025 (MLN): Hi-Tech Lubricants Limited (PSX: HTL) reported a profit after taxation of Rs107.2m for the quarter ended September 30, 2025, surging 4.3 times from Rs20.2m in the corresponding quarter last year.

Earnings per share increased 4.5 times to Rs0.77 compared to Rs0.14 in SPLY.

Gross revenue rose 25.7% year-on-year to Rs9.49bn from Rs7.55bn, demonstrating robust demand during the quarter. Discounts increased 16times to Rs242.7m from Rs14.3m.

Sales tax rose 42.7% to Rs596.2m from Rs417.9m, while federal excise duty nearly doubled, increasing 99.5% to Rs33.9m from Rs17m.

Net revenue grew 21.3% to Rs8.62bn from Rs7.10bn in SPLY. Cost of sales increased 20% to Rs7.76bn from Rs6.47bn.

Gross profit surged 35.1% to Rs858.6m against Rs635.4m, with the gross margin improving to 10.0% from 8.9% in the prior year quarter, indicating enhanced operational efficiency.

Distribution cost increased 13.2% to Rs310.5m, while administrative expenses declined 3.9% to Rs246.3m. Other expenses increased 10.8 times to Rs83.5m from Rs7.1m last year. Other income declined 35.2% to Rs52.7m from Rs81.3m.

The company recorded a profit from operations of Rs271.0m, up 51.4% from Rs179m.

Finance costs decreased 36.9% to Rs111.7m from Rs177m in the previous year, providing significant relief to the bottom line.

Profit before taxation turned sharply positive at Rs108.6m compared to a loss of Rs32.9m.

Taxation decreased to Rs1.4m from Rs53.1m in the prior period.

The company concluded Q1FY26 with a net profit of Rs107.2m, delivering a net profit margin of 1.2% compared to 0.3% in Q1FY25.

The exceptional profit growth was driven by strong revenue expansion, improved gross margins, and substantially lower finance costs, marking a significant operational turnaround from the prior year's challenging performance.

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