PAKT earnings up almost 50% in 3MCY26

April 28, 2026 (MLN): Pakistan Tobacco Company Limited (PSX: PAKT) reported a stellar 49% surge in its consolidated net profit for the first quarter ended March 31, 2026, reaching Rs9.34bn compared to Rs6.27bn in the corresponding period last year.

Reflecting this robust bottom-line expansion, the company's basic and diluted earnings per share (EPS) jumped to Rs36.57 from Rs24.53 in Q1 2025.

The company also declared dividend at Rs35 per share.

The primary driver of this exceptional profitability was a massive expansion in gross margins, fueled by strong domestic sales and strictly controlled production costs.

The company’s gross turnover posted a 28% year-on-year increase to Rs102.27bn, driven entirely by a 35% jump in domestic turnover (Rs99.59bn), which completely offset a 57% plunge in export turnover (Rs2.68bn).

Despite passing on significantly higher government levies with excise duties rising by 29% to Rs48.18bn and sales tax up 36% to Rs15.99bn the company's net turnover still secured a healthy 24% expansion, reaching Rs38.10bn compared to Rs30.65bn last year.

Remarkably, the cost of sales was kept virtually flat, edging down by 0.5% to Rs16.70bn.

Because revenue growth comfortably outpaced the stagnant direct production costs, the company’s gross profit secured a massive 54% expansion, soaring to Rs21.39bn up from Rs13.86bn in the prior year.

On the operational front, overheads escalated significantly.

Selling and distribution costs more than doubled, spiking by 101% to Rs2.55bn, while administrative expenses rose by 31% to Rs1.59bn.

Other operating expenses also climbed by 57% to Rs1.26bn. However, a massive surge in other income and the sheer strength of the gross margin expansion easily absorbed these higher costs, driving the operating profit up by 52% to Rs16.04bn.

Below the operating line, the company experienced a slight shift in financial dynamics.

Finance income dropped 45% to Rs156.84m, while finance costs decreased by 17% to Rs212.81m.

This caused the net finance line to swing from an income of Rs26.32m last year to a net cost of Rs55.98m this quarter.

Despite the shift in finance income, the profit before income tax surged by 51% to Rs15.99bn.

After accounting for a proportionally higher taxation expense of Rs6.65bn (up 53% year-on-year), Pakistan Tobacco securely closed the quarter with its impressive 49% leap in final net profit, settling at Rs9.34bn.

Copyright Mettis Link News