IPAK H1 FY26 profit rockets to around Rs1.5bn

February 16, 2026 (MLN): International Packaging Films Limited (PSX: IPAK) posted a profit after tax (PAT) of Rs1.47 billion for the half year ended December 31, 2025, representing an increase of approximately 3.9 times compared to Rs376.9 million in the same period last year.

Earnings per share (EPS) surged to Rs2.19 from Rs0.86 in H1 FY25, showing the company’s strong operational and financial performance.

Revenue from contracts with customers rose 19.7% year-on-year to Rs19.46bn from Rs16.25bn, supported by higher sales volumes and market demand for packaging solutions.

Cost of sales increased 12.9% to Rs15.84 billion from Rs14.04 billion, resulting in a gross profit of Rs3.62 billion, up 63.5% from Rs2.21 billion in the prior period. The gross margin improved to 18.6% from 13.6% last year, highlighting enhanced operational efficiency.

Selling and distribution expenses rose modestly by 5.3% to Rs334.8m, while administrative expenses increased 11.7% to Rs399.8m.

Other operating items included a reversal of loss allowance on trade debts of Rs33.1m and other operating expenses of Rs122m, a significant increase over last year.

Other income remained stable at Rs164.4m, a slight 1.3% growth YoY.

Operating profit grew 68.8% to Rs2.89bn from Rs1.71bn, underlining strong core business performance despite higher operating expenses.

Finance costs declined by 13.8% to Rs993.9m from Rs1.15bn, supporting overall profitability. Consequently, profit before income tax surged to about 3.4 times last year’s level, reaching Rs1.90bn.

The company recorded an income tax expense of Rs433.2m, showing higher taxable income and deferred tax adjustments.

Profit attributable to owners of the holding company jumped 154.1% to Rs1.61bn, while non-controlling interest (NCI) was Rs147m, compared to Rs258.1m last year.

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