PAKOXY profit soars 76% in Q1CY26

April 28, 2026 (MLN):  Pakistan Oxygen Limited (PSX: PAKOXY) reported a spectacular 76% surge in its net profit for the first quarter ended March 31, 2026, reaching Rs690.06m compared to Rs391.46m in the corresponding period last year.

Reflecting this robust bottom-line expansion, the company's basic and diluted earnings per share (EPS) skyrocketed to Rs7.92 from Rs4.49 in Q1 2025.

The primary catalyst for this phenomenal growth was a strong top-line expansion combined with excellent cost control.

PAKOXY’s net sales posted a solid 23% year-on-year increase, rising to Rs3.61bn from Rs2.95bn.

Meanwhile, the cost of sales was kept remarkably restrained, growing by just 4% to Rs2.04bn.

Because revenue growth significantly outpaced the rise in direct production costs, the company’s gross profit secured a massive 58% expansion, leaping to Rs1.57bn up from Rs995.62m in the prior year.

On the operational front, the company did face mounting overhead pressures.

Distribution and marketing expenses more than doubled, jumping 107% to Rs144.52m, while administrative expenses rose by 27% to Rs120.86m.

Other operating expenses also spiked by 74% to Rs98.20m, pushing total operating expenses up by 64%.

Additionally, secondary support dwindled as "other income" plummeted 66% to just Rs4.02m.

However, the sheer strength of the gross margin expansion easily absorbed these higher costs, driving the operating profit up by 55% to Rs1.21bn.

Below the operating line, PAKOXY benefited from a significant reduction in debt-servicing costs. The company successfully slashed its finance cost by 45%, dropping it to Rs78.61m from Rs142.06m.

This relief in financial charges, combined with the absence of a minimum tax differential levy (which cost Rs18.46m last year), propelled the profit before taxation up by an impressive 82% to Rs1.14bn.

Even after accounting for a sharply higher taxation expense of Rs446.04m (up 91% year-on-year), the company securely closed the quarter with a 76% leap in final net profit, settling at Rs690.06m.

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