Sazgar profit soars 44% to Rs24bn, declares Rs20 final dividend

August 27, 2026 (MLN): Sazgar Engineering Works Limited (PSX: SAZEW) recorded a 44% increase in its net profit for the year ended June 30, 2026, with net profit for the year climbing to Rs23.60bn from Rs16.34bn in the corresponding period last year.

Showing this exceptional bottom-line growth, the company's earnings per share (EPS) from continuing operations expanded to Rs390.51 from Rs270.26 in FY25.

The Board of Directors has announced a final cash dividend of Rs20.00 per share (200%) for the year ended June 30, 2026. This is in addition to interim dividend(s) already paid at Rs50.00 per share (500%).

The top-line performance was impressive, with net sales rising 76% year-on-year to Rs191.72bn from Rs108.69bn in the prior year.

Cost of sales rose at a faster pace of 89% to Rs145.24bn, outpacing revenue growth and causing gross profit to expand at a more measured 47% to Rs46.48bn from Rs31.64bn showing some margin compression from higher input costs despite the strong volume growth.

On the expenditure side, distribution and marketing costs rose 78% to Rs6.19bn, and administrative expenses increased 74% to Rs976.84m. Other operating expenses rose 43% to Rs2.86bn.

Despite these increases, the strong gross profit expansion drove operating profit up 42% to Rs36.45bn from Rs25.61bn.

Below the operating line, other income nearly doubled, rising 96% to Rs2.65bn from Rs1.36bn a meaningful positive contributor. Finance cost, however, rose 97% to Rs454.21m from Rs230.30m.

No levy or final taxation was recorded in the current year, against Rs1.43m in FY25. These combined movements pushed profit before taxation up 45% to Rs38.65bn from Rs26.74bn.

Taxation rose 45% to Rs15.04bn from Rs10.40bn rising in near-perfect proportion to pre-tax profit growth.

Net profit after taxation from continuing operations grew 44% to Rs23.60bn.

No profit from discontinued operations was recorded in the current year, against a negligible Rs21,214 in FY25, with net profit for the year at Rs23.60bn a 44% increase for the full year.

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