Mughal Iron & Steel profit plunges 78% in 1QFY27

October 30, 2026 (MLN): Consolidated profit for the period of Mughal Iron & Steel Industries Limited (PSX: MUGHAL) fell 78.24% year-on-year to Rs201.40m for the quarter ended September 30, 2026, compared with Rs925.70m in the same period last year.

Basic and diluted earnings per share (EPS) declined 78.09% to Rs0.55 from Rs2.51 in the corresponding quarter last year.

The decline came from a 14.64% drop in net sales, a 56.70% fall in gross profit and a more than 22-fold jump in levies. A swing to a taxation credit, lower finance cost and a credit loss reversal partly cushioned the impact.

Gross sales fell 10.43% to Rs20.26bn from Rs22.62bn. Sales tax rose 23.08% to Rs3.09bn from Rs2.51bn, and commission increased 30.82% to Rs18.44m from Rs14.10m. Net sales declined 14.64% to Rs17.15bn from Rs20.09bn.

Cost of sales fell at a slower pace of 5.91% to Rs15.65bn from Rs16.64bn, which pulled gross profit down 56.70% to Rs1.50bn from Rs3.45bn.

Sales and marketing expenses fell 24.58% to Rs75.22m from Rs99.74m, while administrative expenses declined 2.55% to Rs267.66m from Rs274.65m. Other charges dropped 81.16% to Rs28.36m from Rs150.51m.

The company booked a reversal of the allowance for expected credit losses of Rs19.99m, against a charge of Rs72.51m last year.

Other income fell 40.53% to Rs25.50m from Rs42.88m, while finance cost declined 10.67% to Rs849.55m from Rs951.04m.

Net of these items, expenses fell 21.94% to Rs1.18bn from Rs1.51bn. Even so, profit before levies and taxation dropped 83.55% to Rs320.50m from Rs1.95bn.

Levies rose more than 22-fold to Rs155.22m from Rs7.00m, taking profit before taxation down 91.49% to Rs165.27m from Rs1.94bn.

A taxation credit of Rs36.13m, against a charge of Rs1.02bn last year, lifted profit for the period to Rs201.40m.

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