MTL 1QFY27 profit sky rockets 53%

October 22, 2026 (MLN): Millat Tractors Limited (PSX: MTL) reported a 53% surge in its consolidated net profit for the first quarter ended September 30, 2026 (1QFY27), reaching Rs940.64m compared to Rs613.46m in the corresponding period last year.

Reflecting this bottom-line growth, basic and diluted earnings per share (EPS) for the quarter expanded to Rs2.36, up from Rs1.54 (restated) in 1QFY26.

The primary drivers behind the strong quarterly performance were a 43% expansion in revenue from customer contracts alongside a 43% surge in gross profit.

Revenue for the quarter rose to Rs11.11bn, up from Rs7.78bn in 1QFY26. Cost of sales increased 43% to Rs7.98bn, allowing gross profit to jump to Rs3.12bn compared to Rs2.19bn in the prior-year period.

On the operational front, overhead expenses expanded to support increased tractor dispatches and production scale.

Distribution and marketing costs rose 15% to Rs417.05m, administrative expenses increased 48% to Rs713.16m, and other operating expenses grew 60% to Rs119.09m.

Coupled with "other income" of Rs34.93m (down 59% from Rs84.26m), operating profit surged 41% to Rs1.91bn.

Below the operating line, MTL gained debt-servicing relief as finance costs contracted 13% to Rs416.46m (down from Rs476.85m in 1QFY26). Accounting for a statutory final tax levy of Rs12.74m, profit before taxation rose 68% to Rs1.48bn.

The company absorbed a higher corporate taxation charge of Rs540.30m for the quarter (up 103% from Rs266.58m in 1QFY26).

Backed by strong tractor demand, core margin expansion, and lower borrowing costs, Millat Tractors Limited securely closed the three-month period with its net profit reaching Rs940.64m.

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