IPAK 1QFY27 profit holds flat at Rs705m

October 27, 2026 (MLN): International Packaging Films Limited (PSX: IPAK) reported a flat consolidated net profit of Rs704.75m for the first quarter ended September 30, 2026 (1QFY27 / 3MFY27), matching the Rs704.27m recorded in the corresponding period last year.

Basic and diluted earnings per share (EPS) for the quarter settled at Rs1.01, compared to a restated EPS of Rs1.08 in the prior-year period.

The primary dynamic shaping the quarter was a 9% expansion in top-line revenue, which was counterbalanced by cost inflation that compressed gross profit, alongside lower other income.

Consolidated revenue from contracts with customers grew 9% to Rs11.13bn, up from Rs10.19bn in 1QFY26. Cost of sales escalated 13% to Rs9.51bn, leading gross profit to decline 8% to Rs1.62bn compared to Rs1.75bn in the prior-year period.

On the operational side, overheads remained controlled.

Selling and distribution expenses fell 11% to Rs187.38m, administrative expenses edged up 1% to Rs161.03m, and other operating expenses dropped 27% to Rs56.04m.

Furthermore, the company recorded a net reversal of loss allowance on trade receivables of Rs12.17m (reversing a charge of Rs11.51m). However, with other income dropping 40% to Rs80.73m, operating profit contracted 9% to Rs1.31bn.

Below the operating line, IPAK benefited from debt-servicing relief as finance costs declined 16% to Rs424.94m (down from Rs504.26m in 1QFY26), mitigating pre-tax contraction and bringing profit before income tax to Rs882.16m (down 5% from Rs925.66m).

The company recorded a reduced corporate income tax charge of Rs177.41m (down 20% from Rs221.39m in 1QFY26), supported by a deferred tax credit of Rs17.95m. Supported by finance cost savings and lower effective tax expenses, International Packaging Films Limited closed the first quarter with net profit steady at Rs704.75m.

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