Macter International profit jumps 9% in 1HFY26

February 16, 2026 (MLN): Macter International Limited  (PSX:MACTER) reported a net profit of Rs427.2m for the half year ended December 31, 2025, a 9% increase from the Rs392m profit recorded in the same period last year.

The company's earnings per share rose to Rs9.32 from Rs8.56 in the corresponding period of the previous year.

The company's revenue from contracts with customers increased 24.2% year-on-year to Rs6.11bn from Rs4.92bn, demonstrating robust top-line growth.

Cost of sales rose 16.5% to Rs3.17bn from Rs2.72bn, resulting in a gross profit of Rs2.94bn, up 33.7% from Rs2.20bn in the prior period.

The gross profit margin improved significantly to 48.2% from 44.8% in H1 FY2025, indicating enhanced operational efficiency and better pricing power.

The net profit margin stood at 7% compared to 8% in the same period last year, reflecting the impact of higher operating expenses and increased tax burden.

Selling and distribution expenses increased 34.1% to Rs1.65bn from Rs1.23bn.

Administrative expenses rose 33.9% to Rs415.4m from Rs310.2m, while other expenses increased 36.4% to Rs67.5m from Rs49.5m.

Other income declined 26.9% to Rs29m from Rs39.6m.

Operating profit grew 33.2% to Rs831.9m from Rs624.5m in H1 FY2025, demonstrating strong operational performance despite higher expenses.

Finance costs increased 22.1% to Rs58.1m from Rs47.6m, reflecting higher borrowing levels or interest rates.

Profit before income tax reached Rs773.9m, up 34.1% from Rs576.9m in the prior period.

The company recorded an income tax expense of Rs346.7m, up 87.5% from Rs184.9m in the corresponding period last year.

The significantly higher tax charge emerged as the primary factor limiting profit growth, as the effective tax rate increased substantially during the period.

The company's solid performance reflects strong revenue growth and improved gross margins, demonstrating successful market penetration and operational efficiency. While the 9% profit growth was positive, it was constrained by the sharp increase in the tax burden, which nearly doubled YoY.

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