MTL profit jumps 28% to Rs8bn, declares Rs11 final dividend

September 16, 2026 (MLN): Millat Tractors Limited (PSX: MTL) recorded a 28% increase in its consolidated net profit for the year ended June 30, 2026, with profit after tax for the year climbing to Rs8.07bn from Rs6.32bn in the corresponding period last year.

Showing this healthy bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs20.23 from Rs15.85 (restated) in FY25.

The Board of Directors has announced a final cash dividend of Rs11.00 per share (220%) for the year ended June 30, 2026. This is in addition to interim dividend(s) already paid at Rs10.00 per share (200%).

The top-line performance was strong, with revenue from contracts with customers growing 20% year-on-year to Rs64.24bn from Rs53.35bn in the prior year.

Cost of sales rose at a slower pace of 11% to Rs43.10bn, creating a meaningful positive differential with revenue growth and allowing gross profit to surge 47% to Rs21.14bn from Rs14.41bn showing a significant improvement in margins driven by better pricing, product mix, and cost efficiencies.

On the expenditure side, distribution and marketing expenses rose 22% to Rs2.13bn, administrative expenses increased 6% to Rs2.10bn, and other operating expenses grew 27% to Rs1.24bn. Other income declined 18% to Rs501.28m from Rs612.60m. Despite these headwinds, the strong gross profit expansion drove operating profit up 57% to Rs16.16bn from Rs10.32bn.

Below the operating line, finance cost declined sharply by 33% to Rs1.48bn from Rs2.21bn a meaningful tailwind that amplified the operating gains and pushed profit before income taxes and final taxes up 81% to Rs14.68bn from Rs8.10bn.

Levy final taxes rose 64% to Rs39.66m from Rs24.18m, bringing profit before income tax up 81% to Rs14.64bn from Rs8.08bn.

The factor that moderated the bottom-line expansion was a substantially higher income tax charge. Taxation nearly quadrupled to Rs6.57bn from Rs1.76bn absorbing a significant portion of the exceptional pre-tax gains and limiting the overall profit increase to 28% for the full year.

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