SIEM profit crashes 98% in H1FY26

May 22, 2026 (MLN): Siemens (Pakistan) Engineering Co. Ltd. (PSX: SIEM) reported a massive 98% decline in its net profit for the half year ended March 31, 2026, with profit after tax clocking in at Rs12.64m compared to Rs583.32m recorded in the same period last year.

Reflecting the sharp earnings contraction, the company’s earnings per share (EPS) fell to Rs1.53 from Rs70.73 in the corresponding period of last year.

On the top-line front, Siemens Pakistan posted a 6.4% YoY increase in net sales and services, which rose to Rs3.50bn versus Rs3.29bn in SPLY.

However, the growth in revenue was overshadowed by a steeper rise in costs, as cost of sales and services surged 13.4% YoY to Rs2.96bn. Consequently, gross profit declined by 20.4% YoY to Rs545.84m, compressing margins significantly.

Meanwhile, operating expenses also moved upward during the review period. Marketing and selling expenses increased 2.7% to Rs585.05m, while general administrative expenses jumped 16.3% to Rs93.55m.

In contrast, reversal of allowance for expected credit losses dropped sharply by 87.9% to Rs8.42m.

As a result, total operating expenses rose 15.4% YoY to Rs670.17m, pushing the company into an operating loss position of Rs106.24m compared to an operating profit of Rs87.68m in the same period last year.

Below the operating line, Siemens Pakistan recorded a notable improvement in other income, which increased sharply to Rs24.41m from merely Rs0.20m last year.

Other operating expenses also declined by 63.5% YoY to Rs6.32m, resulting in net other operating income of Rs18.09m against a net expense position of Rs17.10m previously.

Financial income provided some support to the bottom line, rising 64.8% YoY to Rs220.51m, while finance expenses climbed 32.2% to Rs27.62m. Consequently, net financial income expanded strongly by 70.8% to Rs192.90m.

Despite the improvement in financial income, profit before levy and income tax plunged 56.8% YoY to Rs86.65m. Additionally, levy expenses surged 45.7% to Rs85.74m, causing profit before income tax to collapse 99.4% YoY to only Rs0.91m.

The company, however, recorded an income tax credit of Rs11.73m against a tax charge of Rs282.53m in the corresponding period last year, which helped cushion the bottom-line decline.

Ultimately, Siemens Pakistan’s net profit for the period stood at Rs12.64m, marking a steep 97.8% YoY drop amid margin erosion, higher operating costs, and a significant increase in levy charges.

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