Towellers’ net profit drops nearly 50% in H1 FY2026

MG News | February 25, 2026 at 12:51 PM GMT+05:00

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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.

STATEMENT OF PROFIT OR LOSS FOR THE HALF YEAR ENDED DECEMBER 31, 2025 (Rs.)
Description	2025	2024	Change (%)
Net Sales	5,747,281,729	6,877,423,813	-16.43%
Cost of Sales	(5,042,941,822)	(6,183,957,971)	-18.45%
Gross Profit	704,339,906	693,465,842	1.57%
Distribution cost	(250,328,875)	(267,483,485)	-6.41%
Administrative expenses	(257,070,418)	(218,398,384)	17.71%
Other operating expenses	(9,722,108)	(26,985,738)	-63.97%
Other operating income	43,572,635	94,114,034	-53.70%
Profit from Operations	230,791,140	274,712,269	-15.99%
Finance cost	(24,632,946)	(17,199,130)	43.22%
Profit before Levies and Income Tax	206,158,194	257,513,139	-19.94%
Levies	(74,980,183)	(29,140,946)	157.30%
Profit before Income Tax	131,178,011	228,372,193	-42.56%
Income Tax Expenses	(25,323,851)	(26,844,782)	-5.67%
Profit After Taxation (for the period)	105,854,159	201,527,411	-47.47%
Earnings per share (basic and diluted)	6.23	11.85	-47.43%

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