Sazgar 9MFY26 profit up 16%, declares Rs20 dividend

April 20, 2026 (MLN): Sazgar Engineering Works Limited (PSX: SAZEW) reported a solid 16% increase in its net profit, reaching Rs14.88bn for the nine months ended March 31, 2026, compared to Rs12.85bn in the same period last year.

Reflecting this healthy bottom-line growth, the company's earnings per share (EPS) expanded proportionally to an impressive Rs246.15, up from Rs212.67 in the corresponding period.

The company also declared dividend at Rs20 per share.

This profit expansion was primarily fueled by a massive surge in top-line sales, complemented by a substantial jump in secondary income. Sazgar’s net sales skyrocketed by 41% year-on-year, hitting Rs115.20bn up from Rs81.43bn in 9MFY25.

However, the company did face notable cost pressures. The cost of sales escalated at a faster pace of 51%, reaching Rs85.76bn.

Despite the margin squeeze from rising direct costs, the sheer volume of revenue growth pushed the gross profit up by 19% to Rs29.44bn from Rs24.80bn in the prior year.

On the operating side, overheads expanded significantly. Distribution and marketing costs jumped 62% to Rs4.17bn, while administrative expenses climbed 66% to Rs743.99m.

Other operating expenses also grew by 15% to Rs1.80bn. Despite these rising operational expenditures, the core business strength allowed the operating profit to secure a 12% gain, reaching Rs22.73bn.

Below the operating line, Sazgar received a massive boost from its "other income," which nearly doubled, surging 92% to Rs1.98bn from Rs1.04bn last year. This influx of non-core revenue easily absorbed a 50% increase in finance costs, which rose to Rs301.48m.

Profit before taxation stood at Rs24.41bn, marking a 16% improvement from the Rs21.04bn recorded in 9MFY25. After booking a proportionally higher taxation expense of Rs9.53bn (up 16% year-on-year), the company cemented its final net profit of Rs14.88bn for the nine-month period.

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