Highnoon Labs profit rises 3% to around Rs2bn in 1HCY26

August 27, 2026 (MLN): Highnoon Laboratories Limited (PSX: HINOON) recorded a 3% increase in its net profit for the half year ended June 30, 2026, with profit after tax for the period rising to Rs1.78bn from Rs1.74bn in the corresponding period last year.

Showing this steady bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs33.66 from Rs32.75 in 1HFY25.

The top-line showed healthy momentum, with net revenue from contracts with customers growing 6% year-on-year to Rs13.98bn from Rs13.19bn in the prior period.

Cost of revenue remained virtually flat, declining marginally by less than 1% to Rs5.92bn, allowing gross profit to expand by a healthy 11% to Rs8.07bn from Rs7.26bn showing meaningful margin improvement at the gross level.

On the expenditure side, distribution, selling and promotional expenses rose 11% to Rs4.04bn, while administrative and general expenses held broadly stable, edging up less than 1% to Rs816.54m.

Other operating expenses, however, rose sharply by 53% to Rs290.95m from Rs190.45m. Total operating expenses in aggregate increased 11% to Rs5.15bn from Rs4.63bn.

These combined movements kept profit from operations growing at a measured 11% to Rs2.92bn from Rs2.64bn.

Below the operating line, other income declined 30% to Rs161.10m from Rs229.11m, and finance cost fell 10% to Rs53.14m from Rs59.26m. No levy was recorded in either period. Profit before income tax rose 8% to Rs3.03bn from Rs2.81bn.

The factor that moderated the bottom-line expansion was a higher income tax charge.

Taxation rose 16% to Rs1.24bn from Rs1.07bn a proportionally larger increase than pre-tax profit growth absorbing a portion of the operational gains and limiting the overall profit increase to 3% for the half year.

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