Roshan Packages profit plunges 86% in 1HFY26

February 18, 2026 (MLN): Roshan Packages Limited (PSX:RPL) reported a net profit of Rs10.60m for the half year ended December 31, 2025, which represents an 86% decline from the Rs73.80m profit recorded in the same period last year.

The company's earnings per share dropped to Rs0.07 from Rs0.52 in the corresponding period of the previous year.

The company’s revenue from contracts with customers increased 22% YoY to Rs6.6bn from Rs5.40bn, demonstrating strong top-line growth.

Sales tax rose 23% to Rs1.02bn from Rs832.37m, resulting in a net revenue of Rs5.58bn, up 22% from Rs4.56bn.

Cost of revenue increased 24% to Rs5.23bn from Rs4.21bn, resulting in a gross profit of Rs356.82m, virtually flat compared to Rs356.61m in the prior period.

The gross profit margin declined to 6.4% from 7.8% in H1 FY2025, indicating margin compression as cost of revenue grew faster than net revenue.

The net profit margin declined sharply to 0.2% from 1.6% in the same period last year, reflecting the company's significantly deteriorated profitability.

Administrative and general expenses increased 7% to Rs163.11m from Rs152.16m.

Selling and distribution expenses declined 9% to Rs54.98m from Rs60.24m, while other operating expenses decreased 42% to Rs5.21m from Rs8.95m. Total operating expenses and other items increased 17% to Rs217.23m from Rs185.65m.

Operating profit declined 18% to Rs139.58m from Rs170.96m in H1 FY2025, reflecting the pressure from flat gross profit and higher net operating expenses.

Other income increased 10% to Rs45.79m from Rs41.49m, while other expenses dropped sharply by 87% to Rs1.41m from Rs11.16m.

Finance costs surged 38% to Rs121.15m from Rs87.76m, emerging as a major factor pressuring profitability as borrowing costs increased substantially.

Profit before taxation stood at Rs20.59m, down 81% from Rs110.33m in the corresponding period last year.

The company recorded a taxation expense of Rs9.99m, down 73% from Rs36.53m, though the lower tax charge could not offset the dramatic decline in pre-tax profit.

The substantial reduction in profit was primarily driven by the 38% surge in finance costs and the Rs40.04m minimum tax differential charge that did not exist in the prior period.

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