MUGHAL profit shoots up 4x to Rs1.88bn

April 29, 2026 (MLN): Mughal Iron & Steel Industries Limited (PSX: MUGHAL) reported a more than fourfold expansion in profit after taxation for the nine months ended March 31, 2026, recording Rs1.88bn compared to Rs412.40m in the corresponding period last year.

The company's earnings per share (EPS) more than quadrupled to Rs5.10, up from Rs1.23 in 9MFY25, showing exceptional value accretion for shareholders during the period.

MUGHAL's net sales declined 9.16% to Rs60.11bn from Rs66.17bn. However, cost of sales contracted at a faster pace of 12.06% to Rs53.03bn from Rs60.30bn, providing a favourable cost dynamic.

This allowed gross profit to expand by a healthy 20.63% to Rs7.08bn from Rs5.87bn.

Sales and marketing expenses declined 6.62% to Rs168.32m while administrative expenses rose 19.48% to Rs802.21m.

Other charges, however, surged more than sixfold to Rs264.01m from Rs42.52m, adding meaningful pressure.

An allowance for expected credit losses of Rs35.40m compared to a reversal of Rs28.13m in the prior year added further drag. Other income nearly doubled to Rs172.06m from Rs86.73m.

The most consequential driver of the bottom-line turnaround was a sharp 41.24% decline in finance costs to Rs2.70bn from Rs4.59bn, substantially lightening the debt-servicing burden and amplifying the profit expansion well beyond the operational gains.

Profit before levies and taxation surged more than sixfold to Rs3.28bn from Rs498.26m. After a levy charge of Rs32.07m, profit before taxation more than tripled to Rs3.25bn from Rs1.03bn.

Taxation doubled to Rs1.37bn from Rs614.55m, reflecting the significantly higher taxable profit base.

After accounting for taxation, Mughal Iron & Steel Industries Limited closed the nine-month period with a profit after taxation of Rs1.88bn, representing a more than fourfold expansion over the Rs412.40m reported in the corresponding period of last year.

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