Mughal Steel profit doubles to Rs2.5bn, declares Rs2/share dividend

September 15, 2026 (MLN): Mughal Iron & Steel Industries Limited (PSX: MUGHAL) posted a strong performance for the year ended June 30, 2026, with profit for the year more than doubling to Rs2.49bn from Rs965.52m in the corresponding period last year.

Showing this exceptional bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs6.75 from Rs2.83 in FY25.

The Board of Directors has declared a final cash dividend of Rs2.00 per ordinary share and ordinary class-C share (20%) for the year ended June 30, 2026.

The top-line came under pressure, with gross sales declining 12% year-on-year to Rs90.92bn from Rs102.79bn.

After accounting for sales tax and commission, net sales declined 13% to Rs77.96bn from Rs89.41bn in the prior year.

Cost of sales fell at a faster pace of 15% to Rs69.30bn, and the impact of this differential was positive at the gross level, allowing gross profit to expand 6% to Rs8.66bn from Rs8.14bn showing improved margin management despite the revenue contraction.

On the expenditure side, sales and marketing expenses rose 5% to Rs239.27m, and administrative expenses increased 30% to Rs1.18bn. Other charges rose 82% to Rs271.57m.

The allowance for expected credit losses swung to a charge of Rs103.05m from a reversal of Rs22.56m last year. Other income nearly tripled to Rs548.76m from Rs200.63m, providing a meaningful offset.

Finance cost, however, was the standout positive development, declining sharply by 33% to Rs3.82bn from Rs5.72bn a saving of nearly Rs1.90bn that provided the primary engine of the earnings recovery. The combined operating expenses and charges subtotal declined 25% to Rs5.06bn from Rs6.78bn.

These combined movements pushed profit before levies and taxation to nearly triple at Rs3.59bn from Rs1.36bn. Levies swung to a charge of Rs89.23m from a credit of Rs482.23m in the prior year an adverse swing that moderated the pre-tax gains, though profit before taxation still nearly doubled to Rs3.50bn from Rs1.84bn.

Taxation rose 16% to Rs1.02bn from Rs873.98m a proportionally far smaller increase than pre-tax profit growth providing an amplifying effect that delivered the more than doubling in profit for the year.

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