THALL FY26H1 earnings rise 28% to Rs5.5bn

February 18, 2026 (MLN): Thal Limited (PSX: THALL) reported a net profit of Rs5.53bn for the half year ended December 31, 2025, which represents a 28% increase from the Rs4.33bn profit recorded in the same period last year.

The company's earnings per share rose to Rs62.77 from Rs47.27 in the corresponding period of the previous year, with the Board of Directors pleased to propose an interim cash dividend of Rs15 per share i.e. 300%.

The conglomerate's net revenue increased 39% YoY to Rs20.66bn from Rs14.88bn, demonstrating strong top-line growth driven by healthy demand across its business segments.

Cost of sales rose 39% to Rs18.85bn from Rs13.55bn, resulting in a gross profit of Rs1.81bn, up 36% from Rs1.33bn in the prior period.

The gross profit margin slightly declined to 8.8% from 8.9% in H1 FY2025, indicated marginal compression as cost of sales grew broadly in line with revenue.

The net profit margin stood at 26.8% compared to 29.1% in the same period last year, showing a moderation in overall profitability driven by lower other income and a decline in operating profit.

Distribution and selling expenses rose 40% to Rs600.3m from Rs429.7m, showing increased commercial activity in line with revenue growth.

Administrative expenses increased 18% to Rs1.19bn from Rs1.01bn, while other income declined 16% to Rs2.75bn from Rs3.26bn, partially offsetting profitability. Other expenses surged 172% to Rs35.9m from Rs13.2m.

Operating profit declined 13% to Rs2.73bn from Rs3.14bn in H1 FY2026, showing the combined pressure of higher operating costs and the significant drop in other income during the period.

Finance costs declined sharply by 33% to Rs325.0m from Rs486.9m, providing meaningful relief to the bottom line in a declining interest rate environment.

Profit before taxation reached Rs7.48bn, up 24% from Rs6.05bn in the prior period, buoyed significantly by the share of profit from associates which surged 40% to Rs5.11bn from Rs3.65bn.

Profit before taxation stood at Rs7.48bn, representing a 24% increase from Rs6.05bn in the corresponding period last year.

The company recorded a taxation expense of Rs1.95bn, up 13% from Rs1.72bn, with the modest increase in tax charge allowing the strong pre-tax growth to flow through substantially to the bottom line.

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