NRL flips from red in 9MFY26

April 29, 2026 (MLN):  National Refinery Limited (PSX: NRL) reported a spectacular financial turnaround for the nine months ended March 31, 2026, swinging from a massive net loss of Rs14.49bn in the previous year to a commanding net profit of Rs9.07bn.

Reflecting this dramatic recovery, the company's basic and diluted earnings per share (EPS) turned sharply positive, recording Rs113.39 compared to a loss per share of Rs181.20 in 9MFY25.

The primary catalyst for this phenomenal profitability was a robust top-line expansion combined with highly favorable cost dynamics.

NRL’s gross revenue from contracts with customers posted a 36% year-on-year increase, rising to Rs399.32bn from Rs293.60bn.

Despite absorbing a heavy 59% increase in trade discounts, taxes, duties, and levies (which consumed Rs107.69bn), the net revenue still secured a strong 29% expansion, reaching Rs291.62bn.

Crucially, the cost of sales grew at a much slower pace of 15%, settling at Rs268.13bn.

Because net revenue growth comfortably outpaced direct production costs, the company completely reversed last year's gross loss of Rs7.94bn, securing a stellar gross profit of Rs23.50bn.

On the operational front, the company navigated significant overhead increases.

Distribution costs rose by 44% to Rs960.53m, administrative expenses increased by 20% to Rs966.45m, and other operating expenses skyrocketed to Rs1.15bn from just Rs14.64m last year.

Furthermore, secondary support weakened as "other income" fell by 46% to Rs219.80m.

However, the sheer magnitude of the gross margin turnaround easily absorbed these higher costs, driving the operating profit to Rs20.64bn, a complete reversal from the Rs9.02bn operating loss recorded in 9MFY25.

Below the operating line, NRL benefited from substantial relief in debt servicing. The company successfully slashed its net finance cost by 28%, dropping it to Rs5.75bn from an Rs8.03bn burden last year.

This massive reduction in financial charges, combined with the absence of any statutory levies (which cost Rs678.87m last year), propelled the profit before income tax to Rs14.89bn, erasing the massive Rs17.72bn pre-tax loss from the prior year.

Even after absorbing a heavy taxation expense of Rs5.83bn (a stark contrast to the Rs3.23bn tax credit received last year), National Refinery securely closed the nine-month period deep in the green with a final net profit of Rs9.07bn.

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