Tariq Glass profit falls 16% to Rs4bn in FY26

September 24, 2026 (MLN): Tariq Glass Industries Limited (PSX: TGL) recorded a 16% decline in its net profit for the year ended June 30, 2026, with net profit for the year falling to Rs4.01bn from Rs4.78bn in the corresponding period last year.

Showing this softer bottom-line, the company's basic and diluted earnings per share (EPS) contracted to Rs23.31 from Rs27.75 in FY25.

The top-line came under pressure, with revenue declining 8% year-on-year to Rs30.72bn from Rs33.56bn in the prior year.

Cost of sales fell at a slower pace of 6% to Rs21.83bn, causing gross profit to contract by 15% to Rs8.89bn from Rs10.41bn showing margin compression as costs did not fall in proportion to revenue.

On the expenditure side, administrative expenses rose 12% to Rs644.43m, and selling and distribution expenses increased 40% to Rs760.63m.

The combined operating expenditure subtotal rose 25% to Rs1.41bn from Rs1.12bn. These movements pulled operating profit down 19% to Rs7.49bn from Rs9.29bn.

Below the operating line, impairment allowance on trade debts more than tripled to Rs200.34m from Rs56.29m a notable drag. Other income grew 63% to Rs229.61m from Rs140.85m, providing partial relief.

Share of loss from associates narrowed 21% to Rs246.06m from Rs311.05m. Other operating expenses declined 18% to Rs532.43m from Rs646.50m.

Finance cost, however, declined sharply by 83% to Rs69.26m from Rs395.86m a significant positive development that meaningfully cushioned the earnings line.

These combined factors brought profit before levy and taxation down 17% to Rs6.67bn from Rs8.03bn. A marginal levy of Rs699,000 was recorded in the current year against nil last year, keeping profit before taxation at Rs6.67bn, down 17%.

On the taxation front, current tax for the year declined 19% to Rs2.85bn, while prior year tax swung to a charge of Rs18.18m from a credit of Rs38.33m last year.

Deferred tax credit eased marginally to Rs209.93m from Rs214.39m. The combined income tax subtotal declined 18% to Rs2.65bn from Rs3.25bn a proportionally larger reduction than the pre-tax profit decline providing a partial cushion.

Despite this tax saving, the revenue contraction and higher impairment charge were sufficient to deliver the 16% decline in net profit for the year.

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