Pakistan Cables swings to Rs166m profit in FY26

September 4, 2026 (MLN): Pakistan Cables Limited (PSX: PCAL) swung to a net profit of Rs166.21m for the year ended June 30, 2026, reversing a loss of Rs280.60m recorded in the corresponding period last year a complete earnings turnaround driven by a dramatic improvement in associate income and a meaningful reduction in below-the-line charges.

Showing this sharp recovery, the company's basic and diluted earnings per share (EPS) swung to Rs3.05 from a loss per share of Rs5.15 in FY25.

The top-line showed healthy growth, with revenue from contracts with customers rising 16% year-on-year to Rs33.79bn from Rs29.09bn in the prior year.

Cost of sales rose in near-equal proportion at 16% to Rs30.27bn, allowing gross profit to expand by 16% to Rs3.51bn from Rs3.03bn showing stable margin management despite the higher cost base.

On the expenditure side, marketing, selling and distribution costs rose 28% to Rs1.25bn, and administrative expenses increased 24% to Rs461.41m.

Impairment loss on trade debts swung to a charge of Rs6.62m from a reversal of Rs8.05m last year. Total operating expenses rose 28% to Rs1.72bn from Rs1.34bn.

Finance cost declined 7% to Rs2.27bn from Rs2.43bn, and other expenses fell 11% to Rs16.59m. Combined other operating charges eased 7% to Rs2.29bn from Rs2.45bn. Other income nearly doubled, rising 89% to Rs661.71m from Rs350.78m, providing a meaningful boost.

The decisive catalyst that drove the earnings turnaround was a near-tenfold surge in share of profit from associate under the equity basis of accounting net of impairment loss which jumped to Rs419.83m from just Rs44.92m last year.

This exceptional associate contribution, combined with the lower finance costs and higher other income, swung profit before levies and income tax to Rs588.88m from a loss of Rs367.63m in the prior year.

Levies final tax declined 97% to just Rs570,000 from Rs19.85m, bringing profit before income tax to Rs588.31m against a pre-tax loss of Rs387.49m last year.

The income tax line also swung adversely. Against a tax credit of Rs106.88m in the prior period which had partially cushioned last year's loss the company recorded an income tax charge of Rs422.10m in the current year, showing the return to profitability.

Despite this tax charge, the strong operational and associate income recovery was sufficient to deliver the full swing to profitability for the year.

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