NCL 9MFY26 profit surges 54%

April 24, 2026 (MLN): Nishat Chunian Limited (PSX: NCL) reported a robust 54% increase in its consolidated profit after taxation for the nine months ended March 31, 2026, recording Rs1.11bn compared to Rs724.84m in the corresponding period last year.

The primary driver of this bottom-line growth was a notable improvement in core margins, which completely offset a contraction in top-line sales.

 The company's net revenue declined by 4% year-on-year, falling to Rs65.01bn from Rs67.44bn.

However, NCL managed to slash its cost of sales at a faster pace of 6%, dropping it to Rs57.01bn from Rs60.37bn.

This favorable cost dynamic allowed the gross profit to secure a 13% expansion, reaching Rs8bn compared to Rs7.07bn in the prior year.

On the operational front, overheads escalated. Distribution costs rose by 7% to Rs1.55bn, administrative expenses increased by 11% to Rs541.87m, and other operating expenses spiked by 20% to Rs308.87m. Furthermore, other operating income dropped by 26% to Rs334.10m.

Despite these rising operational costs and reduced secondary income, the strong gross margin expansion pushed the profit from operations up by 11% to Rs5.93bn.

Below the operating line, NCL faced a slight 3% increase in finance costs, which settled at a heavy Rs3.83bn. However, the operational gains easily absorbed this, pushing the profit before levy and taxation up by 32% to Rs2.09bn.

The company also received a boost from a 17% reduction in statutory levies, which dropped to Rs619.73m from Rs746.56m. This reduction further amplified the pre-tax growth, causing the profit before taxation to surge by 76% to Rs1.47bn.

Although NCL was hit by a massive spike in taxation (consuming Rs357.01m compared to just Rs112.45m last year), the strong pre-tax performance allowed the company to comfortably secure its 54% leap in final net profit, closing the nine-month period at Rs1.11bn.

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