TGL 9MFY26 profit drops 16%

April 28, 2026 (MLN): Tariq Glass Industries Limited (PSX: TGL) reported a 16% decline in its net profit for the nine months ended March 31, 2026, recording Rs2.95bn compared to Rs3.51bn in the corresponding period last year.

Reflecting this bottom-line contraction, the company's basic and diluted earnings per share (EPS) dropped to Rs17.12 from Rs20.39 in 9MFY25.

The profit decline was primarily driven by a slowdown in sales coupled with shrinking core margins.

TGL’s top-line revenue posted an 8% year-on-year decrease, falling to Rs22.77bn from Rs24.83bn.

However, the cost of sales declined at a slower pace of just 3%, settling at Rs16.60bn. This unfavorable cost dynamic caused the gross profit to contract significantly by 20%, dropping to Rs6.17bn from Rs7.69bn in the prior year.

On the operational front, overheads continued to creep up despite the lower sales volume.

Selling and distribution expenses jumped by 20% to Rs454.56m, and administrative expenses edged up by 2% to Rs444.76m.

Dragged down by the shrinking gross margins and rising operating costs, the operating profit plunged by 23% to Rs5.27bn.

Below the operating line, TGL found substantial relief that prevented a much steeper bottom-line fall.

Most notably, finance costs plummeted by a massive 85%, dropping to just Rs56.81m from a heavy Rs376.99m burden in the same period last year.

Additionally, other income grew by 33% to Rs151.12m, while the share of loss from associates was reduced by 31% to Rs166.09m. Other expenses also declined by 16% to Rs391.53m.

Despite these excellent savings in financial charges and lower secondary losses, the sheer drop in core operational earnings kept the profit before taxation down by 19%, settling at Rs4.81bn.

 A proportionally lower taxation expense of Rs1.86bn (down 22% year-on-year) helped cushion the final blow, leaving the net profit for the period at a resilient Rs2.95bn.

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