Pakistan Cables swings to profit in 1HFY26

February 09, 2026 (MLN): Pakistan Cables Limited (PSX:PCAL) reported a net profit of Rs213.4m for the half year ended December 31, 2025,while  swinging from a net loss of Rs186.7m recorded in the same period last year.

The company's earnings per share turned positive at Rs3.92 compared to a loss per share of Rs3.43 in the corresponding period of the previous year.

The cable manufacturer's revenue from contracts with customers increased 3% YoY to Rs16.18bn from Rs15.71bn, demonstrating modest top-line growth.

Cost of sales rose 3.7% to Rs14.58bn from Rs14.06bn, resulting in a gross profit of Rs1.60bn, down 3.2% from Rs1.65bn in the prior period.

The gross profit margin declined to 9.9% from 10.5% in SPLY, indicating margin compression due to rising input costs.

The net profit margin improved significantly to 1.3% from a negative 1.2% in the same period last year, which reflected the company's return to profitability.

Total operating expenses increased 15.1% to Rs839.4m from Rs729.5m, driven by higher selling and administrative costs. Marketing, selling and distribution costs rose 9.5% to Rs607.9m from Rs555.4m, while administrative expenses jumped 17.2% to Rs220m from Rs187.6m.

The company recorded an impairment charge on trade debts of Rs11.5m compared to a reversal of Rs13.5m in the prior period, indicating heightened credit risk concerns.

Finance costs declined 11.7% to Rs1.11bn from Rs1.26bn, providing significant relief to the bottom line as borrowing costs moderated.

Other expenses decreased sharply by 64.7% to Rs4.1m from Rs11.7m, while other charges fell 12.2% to Rs1.12bn from Rs1.27bn. Other income increased 35.7% to Rs183.3m from Rs135.1m, contributing positively to profitability.

Profit before levies and tax reached Rs257.6m, swinging from a loss of Rs211.8m in H1 FY2024, marking a substantial turnaround in operational performance.

The company recorded minimal levies and final tax of Rs380,000, down 96.9% from Rs12.3m in the prior period. Profit before income tax stood at Rs257.2m compared to a loss of Rs224.1m in the corresponding period last year.

The company recorded an income tax expense of Rs43.7m compared to a tax credit of Rs37.5m in SPLY. Despite the tax charge, the company achieved profitability, demonstrating improved operational efficiency and cost management.

The company's impressive turnaround to profitability was primarily driven by lower finance costs, increased other income, and reduced other charges, which more than offset the impact of margin compression and higher operating expenses.

The return to profitability reflects improved financial management and operational efficiency despite challenging market conditions. The company's management has not yet released detailed commentary on the half-year results or forward-looking guidance.

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