NCL profit surge 87% in 1HFY26

February 26, 2026 (MLN): Nishat Chunian Limited (PSX:NCL) reported a net profit of Rs485.43m for the half year ended December 31, 2025, an 87% increase from the Rs259.59m profit recorded in the same period last year.

The company's earnings per share rose to Rs2.02 from Rs1.08 in the corresponding period of the previous year.

Dividend is declared at Rs1 per share for the quarter.

The company's net revenue declined 2% year-on-year to Rs43.25bn from Rs44.02bn.

Cost of sales decreased 3% to Rs38.14bn from Rs39.44bn.

Because costs fell at a slightly faster pace than revenue, gross profit grew 12% to Rs5.11bn from Rs4.58bn in the prior period.

The gross profit margin improved to 11.8% from 10.4% in H1 FY2025, indicating better operational efficiency and cost management.

The net profit margin stood at 1.1% compared to 0.6% in the same period last year, reflecting improved overall bottom-line health despite the dip in top-line sales.

Distribution costs remained relatively flat, inching up 1% to Rs1.05bn from Rs1.04bn. Administrative expenses rose 24% to Rs363.40m from Rs292.26m, while other operating expenses increased 89% to Rs166.79m from Rs88.32m.

Other operating income dropped 46% to Rs220.99m from Rs408.90m. Despite the lower other income and higher operating overheads, profit from operations grew 5% to Rs3.76bn from Rs3.57bn, anchored by the strong gross margins.

Finance costs decreased 6% to Rs2.59bn from Rs2.76bn, providing further relief to the bottom line.

After accounting for a levy of Rs392.93m (which was down 27% from last year), profit before taxation reached Rs773.23m from Rs272.79m in the prior period.

The company recorded a massive taxation expense of Rs287.80m, a staggering increase from the minor Rs13.19m tax charge in the corresponding period last year.

Ultimately, the strong 87% net profit growth was driven by improved gross margins and lower finance costs, which successfully absorbed the massive jump in taxation and the slight dip in revenue.

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