NICL FY26 H1 earnings rise 32% to around Rs1bn

February 16, 2026 (MLN): Nimir Industrial Chemicals Limited (PSX: NICL) reported a profit after tax (PAT) of Rs1.12 billion for the six months ended December 31, 2025, marking a 31.8% increase compared to Rs847.6 million in the same period last year.

Earnings per share (EPS) improved to Rs10.10 from Rs7.66 in H1 last year, showing stronger bottom-line performance. The Board of Directors also declared an interim cash dividend of 20%, i.e., Rs2.0 per share.

Revenue from contracts with customers (net) increased 15.0% year-on-year to Rs23.45bn, compared to Rs20.39bn in the corresponding period last year, driven by improved sales volumes and pricing adjustments. On a gross basis, revenue rose 15.6% to Rs27.62bn.

Cost of revenue grew 18.0% to Rs20.17bn, outpacing topline growth. As a result, gross profit slightly declined by 0.8% to Rs3.28bn from Rs3.30bn last year. The gross margin compressed to 14.0% from 16.2%, indicating pressure on input costs.

On the expense side, distribution costs declined 13.4% to Rs274.5m, providing some relief. However, administrative and selling expenses increased 22.3% to Rs392.4m. Overall, total operating expenses rose 4.6% to Rs666.9 million.

Consequently, operating profit stood at Rs2.61bn, slightly down 2.1% from Rs2.67bn in the same period last year, showing margin compression despite higher revenues.

Other expenses increased 16.8% to Rs119.2m, while other income rose 18.7% to Rs140.1m.

A major positive contributor was the sharp decline in finance costs, which fell 26.9% to Rs1.02bn from Rs1.40 billion, significantly supporting profitability amid a relatively high interest rate environment.

Profit before income tax and levy surged 25.6% to Rs1.61bn. After accounting for levy charges of Rs301.1m, profit before tax (PBT) stood at Rs1.31bn, up 3.3% year-on-year.

Taxation expense declined 54.6% to Rs189.4m, compared to Rs416.8m last year, further strengthening the bottom line.

As a result, PAT increased 31.8% to Rs1.12bn, supported primarily by lower finance costs and reduced taxation, despite pressure on gross margins and slightly lower operating profit.

The interim dividend of Rs2.0 per share emphasizes the company’s confidence in its financial position and cash flow generation during the period.

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