Towellers’ net profit drops nearly 50% in H1 FY2026

February 25, 2026 (MLN): Towellers Limited (PSX:TOWL) posted a net profit of Rs105.85m for the half year ended December 31, 2025, down 47.47% compared to Rs201.53m in the same period last year. Earnings per share (EPS) fell to Rs6.23 from Rs11.85 in H1 FY2024.

The company's net sales declined 16.43% year-on-year to Rs5.75bn from Rs6.88bn, while the cost of sales decreased 18.45% to Rs5.04bn from Rs6.18bn, resulting in a marginally higher gross profit of Rs704.34m, up 1.57% from Rs693.47m.

Distribution costs decreased 6.41% to Rs250.33m, whereas administrative expenses rose 17.71% to Rs257.07m.

Other operating expenses dropped 63.97% to Rs9.72m, while other operating income declined 53.70% to Rs43.57m, leading to a profit from operations of Rs230.79m, down 15.99% from Rs274.71m.

Finance costs increased 43.22% to Rs24.63m, and levies surged 157.30% to Rs74.98m. Profit before income tax fell 42.56% to Rs131.18m from Rs228.37m, while income tax expense slightly decreased 5.67% to Rs25.32m.

The company’s profit after taxation settled at Rs105.85m, reflecting a significant decline in net profitability, with the net margin under pressure amid higher levies and finance costs.

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