Thal Limited profit drops 11% to Rs2bn in 1QFY26

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MG News | October 30, 2025 at 11:37 AM GMT+05:00

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.

 

STATEMENT OF PROFIT OR LOSS FOR THE QUARTER ENDED SEPTEMBER 30, 2025 (Rs.000)

Description

2025

2024

Change%

Revenue - net

10,417,785

6,500,093

60.27%

Cost of sales

(9,526,250)

(6,023,589)

58.15%

Gross Profit

891,535

476,504

87.10%

Distribution and selling expenses

(333,045)

(197,504)

68.63%

Administrative expenses

(624,096)

(502,796)

24.13%

Other charges

(9,581)

(2,304)

315.84%

Subtotal - Expenses

(966,722)

(702,604)

37.59%

Other income

1,340,798

1,795,286

-25.32%

Operating Profit

1,265,611

1,569,186

-19.35%

Finance costs

(166,482)

(264,456)

-37.05%

Subtotal

1,099,129

1,304,730

-15.76%

Share of net profit of associates - after tax

1,865,088

2,097,139

-11.07%

Profit before levy and taxation

2,964,217

3,401,869

-12.87%

Levy

(30,069)

(247,901)

-87.87%

Profit before taxation

2,934,148

3,153,968

-6.97%

Taxation

(850,479)

(818,012)

3.97%

Profit after taxation

2,083,669

2,335,956

-10.80%

Earnings Per Share (Rupees)

22.76

25.21

-9.72%

 

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