Mughal Steel forges an iron-clad recovery

 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. 

Copyright Mettis Link News