Ittehad Chemicals Posts Rs1.5bn Profit in FY26

September 22, 2026 (MLN): Ittehad Chemicals Limited (PSX: ICL) recorded a 16% increase in its consolidated net profit for the year ended June 30, 2026, with profit after income tax climbing to Rs1.50bn from Rs1.29bn in the corresponding period last year.

Showing this steady bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs15.01 from Rs12.90 in FY25.

The Board of Directors has declared a final cash dividend of Rs3.00 per share (30%) for the year ended June 30, 2026. This is in addition to interim cash dividend(s) already paid at Rs1.00 per share (10%).

The top-line showed strong momentum, with revenue from contracts with customers growing 23% year-on-year to Rs34.31bn from Rs27.86bn in the prior year.

Cost of sales rose at a faster pace of 27% to Rs29.02bn, outpacing revenue growth and causing gross profit to expand at a more modest 6% to Rs5.29bn from Rs4.99bn showing some margin compression from higher input costs despite the strong volume growth.

On the expenditure side, selling and distribution expenses declined marginally by 2% to Rs1.60bn, providing modest relief. General and administrative expenses rose 25% to Rs532.14m, and other operating expenses increased 36% to Rs231.28m.

Other income grew 71% to Rs138.21m from Rs80.89m, providing a partial offset. These combined movements delivered a 8% increase in operating profit to Rs3.07bn from Rs2.85bn.

Below the operating line, finance cost declined 13% to Rs548.996m from Rs633.93m a meaningful tailwind. A marginal share of loss from associate of Rs3.00m was recorded in the current year with no prior year comparable.

Profit before income tax and levy rose 13% to Rs2.51bn from Rs2.22bn. No levy was recorded in the current year against Rs8.49m in FY25, keeping profit before income tax up 14% at Rs2.51bn from Rs2.21bn.

On the taxation front, current tax rose 19% to Rs1.12bn from Rs941.69m. Deferred tax credit nearly quintupled to Rs112.06m from Rs24.16m, partially offsetting the higher current tax.

The net income tax subtotal rose 16% in aggregate, rising in near-equal proportion to pre-tax profit growth, resulting in the 16% increase in profit after income tax for the full year.

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