WAFI 1HCY26 profit rises 19%

August 27, 2026 (MLN): Wafi Energy Pakistan Limited (PSX: WAFI) reported a 19% increase in its net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs1.52bn compared to Rs1.28bn in the corresponding period last year.

Reflecting the half-year profitability growth, the company's basic and diluted earnings per share (EPS) for the six-month period improved to Rs7.12, up from Rs5.97 in 1HCY25.

The primary driver behind the performance was strong top-line revenue expansion combined with gross margin growth.

Net sales for the half-year surged by 37% year-on-year to reach Rs303.04bn, up from Rs221.70bn in 1HCY25.

Although the cost of products sold expanded by 37% to Rs285.26bn, strong sales volume growth enabled gross profit to expand 28% to Rs17.78bn compared to Rs13.94bn in the prior year.

On the operational front, overheads expanded to support market scale and commercial activities.

Distribution and marketing expenses rose 15% to Rs6.11bn, administrative expenses grew 17% to Rs5.37bn, and other expenses surged 203% to Rs3.72bn.

Despite a 4% increase in "other income" (Rs1.04bn), rising operating expenses led to a slight 5% dip in operating profit, which settled at Rs3.63bn.

Below the operating line, WAFI benefited from stable borrowing costs and associate income support.

Finance costs fell 3% to Rs1.13bn (down from Rs1.17bn in 1HCY25), while the share of profit from associates stood at Rs965.82m.

Coupled with the complete absence of final taxes and minimum tax differentials (which totaled Rs380.93m in 1HCY25), profit before income tax rose 2% to Rs3.46bn.

The company absorbed an 8% lighter net income tax charge of Rs1.94bn for the six-month period (down from Rs2.10bn in 1HCY25), aided by a deferred tax credit of Rs870.34m.

Supported by 37% top-line growth, gross margin expansion, and tax relief, Wafi Energy Pakistan Limited securely closed the half-year with its net profit reaching Rs1.52bn.

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