Mughal Steel forges an iron-clad recovery

MG News | February 27, 2026 at 12:24 PM GMT+05:00

0:00

February 27, 2026 (MLN): Mughal Iron & Steel Industries Limited (PSX: MUGHAL) posted a substantial turnaround in profitability for the six months ended December 31, 2025.

The company reported a profit after tax of Rs1.66 billion, up 666% year-on-year, translating into an EPS of Rs4.51 compared to Rs0.65 in the same period last year.

Revenue, however, saw a 10.8% decline to Rs41.75 billion, primarily due to lower gross sales (down 10.1% YoY) and marginal reduction in sales tax impact.

Despite the top-line contraction, operating efficiency improved as the cost of sales fell by 14.8%, boosting gross profit by 29.7% to Rs5.44 billion. The gross margin rose to 13%, indicating better cost management and product mix optimization.

Sales & marketing expenses nearly doubled to Rs144 million, reflecting increased investment in promotional activities while administrative costs increased moderately by 18.9%.

Other charges surged sharply by 623.5% due to non-recurring items, likely impacting operational performance in the short term.

The allowance for expected credit losses shifted from a Rs31 million reversal to a Rs31 million charge, indicating more conservative provisioning.

Other income doubled to Rs 322 million, partly offsetting higher operating costs.

The company saw a significant reduction in finance costs, down 45% to Rs1.89 billion, aiding the bottom line.

The effective tax expense rose to Rs1.27 billion, reflecting higher pre-tax profits.

Statement of profit for the six months period ended December 31, 2025 (Rupees)
Particulars	2025 (Rs)	2024 (Rs)	Change (Rs)	% Change
Gross Sales	48,138,827,147	53,518,356,954	(5,379,529,807)	-10.1%
Sales Tax	(6,353,930,560)	(6,657,940,973)	304,010,413	-4.6%
Net Sales Before Commission	41,784,896,587	46,860,415,981	(5,075,519,394)	-10.8%
Commission	(38,372,907)	(34,999,255)	(3,373,652)	9.6%
Net Sales	41,746,523,680	46,825,416,726	(5,078,893,046)	-10.8%
Cost of Sales	(36,302,636,392)	(42,626,295,752)	6,323,659,360	-14.8%
Gross Profit	5,443,887,288	4,199,120,974	1,244,766,314	29.7%
Sales & Marketing Expenses	(143,706,659)	(73,738,923)	(69,967,736)	94.9%
Administrative Expenses	(522,027,547)	(439,128,902)	(82,898,645)	18.9%
Other Charges	(220,351,043)	(30,456,647)	(189,894,396)	623.5%
Allowance for Expected Credit Losses	(30,978,629)	30,881,743	(61,860,372)	-200.4%
Other Income	321,763,947	154,937,005	166,826,942	107.6%
Finance Cost	(1,892,370,976)	(3,452,656,586)	1,560,285,610	-45.2%
Profit Before Levies & Taxation	2,956,216,381	388,958,664	2,567,257,717	660.0%
Levies	(19,883,233)	179,235,971	(199,119,204)	-111.1%
Profit Before Taxation	2,936,333,148	568,194,635	2,368,138,513	416.9%
Taxation	(1,273,718,185)	(351,059,493)	(922,658,692)	262.7%
Profit After Taxation	1,662,614,963	217,135,142	1,445,479,821	665.7%

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	152,740.38 147.44M	-1.01% -1551.88
ALLSHR	91,858.47 324.25M	-0.86% -800.10
KSE30	46,223.61 86.89M	-1.45% -681.25
KMI30	219,130.92 66.08M	-1.15% -2553.50
KMIALLSHR	59,625.28 139.61M	-0.93% -562.17
BKTi	42,104.46 39.09M	-2.02% -866.56
OGTi	32,077.87 10.13M	-1.27% -414.19

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	69,895.00	71,755.00 69,530.00	-1220.00 -1.72%
BRENT CRUDE	112.97	119.13 109.78	5.59 5.21%
RICHARDS BAY COAL MONTHLY	99.40	0.00 0.00	-11.50 -10.37%
ROTTERDAM COAL MONTHLY	121.50	0.00 0.00	0.30 0.25%
USD RBD PALM OLEIN	1,083.50	1,083.50 1,083.50	0.00 0.00%
CRUDE OIL - WTI	96.17	99.17 94.41	0.71 0.74%
SUGAR #11 WORLD	15.18	15.22 14.76	0.38 2.57%