ISL FY26 profit more than doubles to Rs3.7bn

August 20, 2026 (MLN): International Steels Limited (PSX: ISL) reported a massive 2.4x (136%) surge in its net profit for the fiscal year ended June 30, 2026, more than doubling its bottom line to Rs3.67bn compared to Rs1.56bn in the preceding year.

Alongside the financial results, the company announced a final cash dividend of Rs3.00 per share.

Reflecting this explosive profitability, the company's basic and diluted earnings per share (EPS) more than doubled, jumping to Rs8.44 from Rs3.58 in FY25.

The primary catalyst behind this stellar performance was a powerful top-line expansion combined with a sharp doubling of gross margins.

ISL’s revenue from contracts with customers surged by 50% year-on-year to reach Rs93.35bn, up from Rs62.31bn in FY25.

Although the cost of sales grew by 45% to Rs82.62bn, strong revenue generation outpaced direct production cost increases, allowing gross profit to explode by 101% to settle at Rs10.73bn compared to Rs5.34bn in FY25.

On the operational front, overheads expanded to support higher market activity and sales volumes.

Selling and distribution expenses rose by 88% to Rs2.95bn, while administrative expenses increased by 30% to Rs595.32m.

Despite higher operating outlays, strong gross margins propelled operating profit up by 2.16x to settle at Rs7.18bn.

Below the operating line, ISL absorbed higher financial and operational charges.

Finance costs grew by 51% to Rs1.21bn, while other expenses surged by 2.68x to Rs982.22m.

Although "other income" declined by 45% to Rs142.76m, the company received a substantial boost from its associate entity, with its share of net income surging to Rs419.83m (up from Rs44.92m).

Driven by these factors, profit before income tax jumped 2.3x to Rs5.55bn.

The company absorbed a 2.11x higher income tax expense of Rs1.87bn for the year (up from Rs890.35m in FY25).

Supported by top-line volume growth, doubled gross margins, and strong associate earnings, International Steels Limited securely closed the fiscal year with a 2.4x leap in final net profit, settling at Rs3.67bn.

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