Nimir eyes strong FY26 on cost cuts & growth plans

November 10, 2025 (MLN): Nimir Chemicals Limited (NICL) is poised for a robust FY26 performance, following strategic measures to stabilize costs and optimize operations.

The company highlighted during its recent corporate briefing that with the anticipated decline in interest rates, financial expenses are expected to ease, providing a strong foundation for profit recovery in the upcoming fiscal year.

Management outlined ambitious growth targets for FY26, emphasizing potential margin expansion once high-cost inventories are fully cleared. This move is expected to significantly enhance profitability and operational efficiency across the business.

Additionally, the softening of global feedstock prices is set to support a more stable cost structure, reducing the risk of further inventory losses. Together, these factors signal a stronger and more resilient FY26 outlook for Nimir, positioning the company to capitalize on both domestic and international growth opportunities.

Nimir Chemicals posted a remarkable turnaround in FY25, reporting a Profit After Tax (PAT) of Rs2.02bn, up 102% year-on-year from Rs1.00bn in FY24. This strong performance was driven by improved operating efficiencies and better cost management across its business segments.

During the briefing, the company shared that it had acquired P&G’s Hub plant, purchasing the physical assets while P&G retains ownership of the intellectual property. This acquisition, combined with P&G’s shift toward an import-based model in Pakistan, is expected to double retail prices for key FMCG products such as soaps, allowing Nimir to capture greater market share.

In addition, P&G is reportedly open to selling its Bin Qasim plant, which manufactures Pampers and detergents and Nimir may consider the acquisition if the valuation proves viable, with shareholders to be informed accordingly.

The company also noted that the South plant will serve as a hub to efficiently cater to the southern region’s market demand, while strategic expansion plans abroad aim to establish manufacturing facilities and tap into new international markets for future growth.

Despite these positive developments, Nimir faced challenges in certain segments, with profit after tax declining to Rs249m in FY25 compared to Rs270m last year, showing an 8% year-on-year drop as the company absorbed higher finance costs and elevated input prices.

Nimir’s 15% equity acquisition by the Rudolph Group has been highly beneficial, with their global chemical expertise significantly enhancing product quality, formulations, and operational standards.

Overall, the company’s proactive measures in cost management, strategic acquisitions, and expansion planning are expected to drive sustainable growth and enhanced shareholder value in FY26 and beyond.

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