NRL returns to profit with Rs6.16bn earnings in FY26

August 27, 2026 (MLN): National Refinery Limited (PSX: NRL) swung to a net profit of Rs6.16bn for the year ended June 30, 2026, reversing a loss of Rs14.87bn recorded in the corresponding period last year a complete earnings turnaround driven by a dramatic improvement in refining margins.

Showing this strong recovery, the company's earnings per share (EPS) swung to Rs77.09 from a loss per share of Rs185.91 in FY25.

The top-line showed impressive growth, with revenue from contracts with customers rising 44% year-on-year to Rs588.55bn from Rs408.07bn.

After accounting for trade discounts, taxes, duties, levies and price differentials which rose 47% to Rs147.71bn net revenue grew 43% to Rs440.84bn from Rs307.66bn in the prior year.

Cost of sales rose at a slower pace of 33% to Rs417.30bn, and the impact of this differential was transformative at the gross level.

Gross profit swung decisively to Rs23.54bn from a gross loss of Rs6.23bn last year a complete reversal that formed the bedrock of the earnings recovery.

On the expenditure side, distribution cost rose 77% to Rs1.58bn, and administrative expenses increased 22% to Rs1.36bn. Other operating expenses surged to Rs824.86m from just Rs15.80m last year a more than fiftyfold increase.

Other income, however, declined 34% to Rs373.53m from Rs562.15m. Despite these headwinds, the dramatic gross profit turnaround drove operating profit to Rs20.16bn, reversing an operating loss of Rs7.70bn in the prior year.

Below the operating line, net finance cost declined 10% to Rs9.28bn from Rs10.33bn, providing a meaningful additional tailwind.

Profit before taxation and levies reached Rs10.88bn, reversing a pre-tax loss of Rs18.03bn. Levies rose 61% to Rs665.66m from Rs414.24m, keeping profit before taxation at Rs10.21bn against a pre-tax loss of Rs18.44bn last year.

On the taxation front, the swing was equally decisive. Against a tax credit of Rs3.57bn in FY25 which had partially cushioned last year's loss the company recorded a tax charge of Rs4.05bn in the current year, reflecting the return to profitability.

Despite this tax charge, the exceptional operational recovery was more than sufficient to deliver the full-year profit of Rs6.16bn.

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