Hi-Tech Lubricants profit skyrockets over 100-fold

April 28, 2026 (MLN): Hi-Tech Lubricants Limited (PSX: HTL) reported a more than 102-fold expansion in profit after taxation for the nine months ended March 31, 2026, recording Rs434.90m compared to just Rs4.24m in the corresponding period last year.

Mirroring this exceptional performance, the company's basic and diluted earnings per share (EPS) surged more than 104-fold to Rs3.12 from a mere Rs0.03 in 9MFY25.

The primary driver of this profit expansion was a top-line growth that meaningfully outpaced the rise in direct costs.

HTL's net revenue posted an 8.96% year-on-year increase, rising to Rs26.48bn from Rs24.30bn. Concurrently, the cost of sales grew at a comparatively slower pace of 7.28%, reaching Rs23.70bn.

This favourable cost dynamic allowed gross profit to register a 25.84% expansion, settling at Rs2.78bn, up from Rs2.21bn in the prior year.

On the operational front, the company navigated a mixed overhead environment. Distribution costs rose modestly by 6.20% to Rs1.08bn, while administrative expenses edged lower by 2.60% to Rs734.87m a commendable exercise in cost discipline.

Other expenses, however, escalated to approximately 2.2 times their prior-year level, climbing to Rs143.91m from Rs66.67m. Other income grew by 17.89% to Rs264.40m, providing a partial offset.

The combined effect of these dynamics pushed profit from operations up by a robust 82.42% to Rs1.09bn, compared to Rs595.34m in the corresponding period of the prior year.

Below the operating line, HTL benefited from significantly improved financial dynamics.

Finance costs declined by a meaningful 24.00% to Rs342.54m from Rs450.69m showing a lighter debt-servicing burden that proved a critical tailwind to profitability.

After netting this relief, profit before taxation and levy stood at Rs743.47m approximately 5.1 times the Rs144.66m recorded in 9MFY25.

Following a levy charge of Rs101.71m (down 19.20% year-on-year), profit before taxation reached Rs641.77m — approximately 34.2 times the Rs18.79m reported in the prior-year period, reflecting the dramatic operating leverage achieved during the period.

The company faced a commensurately higher taxation charge of Rs206.87m approximately 14.2 times the prior-year levy of Rs14.55m in line with the sharp rise in taxable income.

After accounting for taxation, Hi-Tech Lubricants successfully closed the nine-month period with a profit after taxation of Rs434.90m, representing more than 102 times the Rs4.24m reported in the corresponding period of last year.

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