ISL profit climbs 2.5x in 9MFY26

April 22, 2026 (MLN): International Steels Limited (PSX: ISL) reported a spectacular financial performance for the nine months ended March 31, 2026, with its net profit surging 2.53 times to Rs2.41bn compared to Rs951.31m in the corresponding period last year.

Reflecting this massive bottom-line expansion, the company's earnings per share (EPS) jumped to Rs5.54 from Rs2.19 in 9MFY25.

The primary engine behind this phenomenal growth was a robust surge in top-line sales. The company's revenue from contracts with customers jumped by 47% year-on-year, reaching Rs67.28bn up from Rs45.67bn in the previous year.

While the cost of sales also increased by 43% to Rs60.09bn, it grew at a slightly slower pace than the top line. As a result, ISL's gross profit more than doubled, recording a 101% expansion to Rs7.19bn from Rs3.57bn.

On the operating front, overheads naturally increased alongside the expanding business volume.

Selling and distribution expenses spiked by 87% to Rs1.94bn, while administrative expenses saw a moderate 25% increase to Rs432.28m.

Despite the higher operational expenditures, the sheer strength of the gross margin expansion drove the operating profit up by a massive 120% to Rs4.81bn from Rs2.18bn last year.

Below the operating line, ISL faced several headwinds. Finance costs increased by 41% to Rs974.29m, other expenses spiked 238% to Rs680.68m, and other income dropped 53% to Rs104.81m.

However, the company received a substantial boost from its share of net income of associates, which contributed a healthy Rs480.63m to the bottom line (compared to zero in the previous year). This crucial addition, combined with the soaring operational earnings, pushed the profit before taxation up by 147% to Rs3.74bn.

Even after absorbing a proportionally heavier taxation expense of Rs1.33bn (up 137% year-on-year), ISL easily secured a multi-fold leap in its final net profit, comfortably closing the nine-month period at Rs2.41bn.

Copyright Mettis Link News