Otsuka Pakistan profit jumps 17-fold to Rs472m in FY26

September 2, 2026 (MLN): Otsuka Pakistan Limited (PSX: OTSU) recorded a seventeen fold increase in its net profit for the year ended June 30, 2026, with profit for the year surging to Rs472.13m from Rs27.68m in the corresponding period last year.

Showing this exceptional bottom-line growth, the company's earnings per share (EPS) expanded to Rs39.02 from Rs2.29 in FY25.

The top-line showed steady growth, with revenue from contracts with customers rising 9% year-on-year to Rs4.11bn from Rs3.78bn in the prior year.

The most transformative development of the year occurred at the cost level. Cost of sales declined 9% to Rs2.65bn from Rs2.92bn a reduction achieved against a backdrop of rising revenue causing gross profit to surge 69% to Rs1.46bn from Rs863.40m and reflecting a dramatic improvement in production efficiency and cost management.

On the expenditure side, selling and distribution expenses rose 28% to Rs652.00m, and administrative and general expenses increased 13% to Rs220.56m. A reversal against expected credit loss on trade debts of Rs49.99m was recorded in the prior year with no comparable in the current period.

Other expenses declined 46% to Rs95.04m from Rs175.44m, providing meaningful relief. Other income more than doubled to Rs291.67m from Rs128.29m. These combined movements drove operating profit to nearly five times the prior year level at Rs782.97m from Rs162.91m, a gain of 381%.

Below the operating line, finance cost nearly doubled to Rs11.20m from Rs5.90m, though the absolute quantum remained modest. Profit before levies and taxation surged to nearly five times the prior year at Rs771.77m from Rs157.00m.

No levy was recorded in the current year, against Rs49.46m in FY25, bringing profit before taxation to Rs771.77m more than seven times the Rs107.54m recorded last year.

Taxation rose to Rs299.64m from Rs79.86m more than tripling reflecting the substantially higher profitability base. Despite this heavier tax charge, the exceptional operational recovery was more than sufficient to deliver the seventeenfold surge in profit for the year.

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