Thal Limited profit drops 11% to Rs2bn in 1QFY26

October 30, 2025 (MLN): Thal Limited (PSX: THALL) reported a profit after tax of Rs2.08bn for the quarter ended September 30, 2025, down 11% from Rs2.34bn in the corresponding period last year.

Earnings per share declined to Rs22.76 from Rs25.21 in SPLY, showing the reduced profitability during the period.

Revenue surged 60% year-on-year to Rs10.42bn from Rs6.50bn, demonstrating strong top-line growth. Cost of sales increased 58% to Rs9.53bn from Rs6.02bn, rising broadly in line with revenue expansion.

Gross profit jumped 87% to Rs891.5m against Rs476.5m, with the gross margin improving to 8.6% from 7.3% in the prior year, indicating better pricing power and operational efficiency despite higher production costs.

Distribution and selling expenses increased 69% to Rs333.0m from Rs197.5m, while administrative expenses rose 24% to Rs624.1m from Rs502.8m. Other charges surged 316% to Rs9.58m from Rs2.30m last year.

Operating profit declined 19% to Rs1.27bn from Rs1.57bn in SPLY. Finance costs decreased 37% to Rs166.5m from Rs264.5m in the previous year, providing some relief. Other income contracted 25% to Rs1.34bn from Rs1.80bn.

Share of net profit of associates after tax declined 11% to Rs1.87bn from Rs2.10bn, contributing significantly to overall profitability.

The company concluded 1QFY26 with a profit after taxation of Rs2.08bn, delivering a net profit margin of 20.0% compared to 35.9% in 1QFY25, reflecting margin compression despite strong revenue growth.

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