WAFI Q1CY26 profit surges 2.5x

April 30, 2026 (MLN): Wafi Energy Pakistan Limited (PSX: WAFI) reported a spectacular 2.5x surge in its net profit for the first quarter ended March 31, 2026, reaching Rs2.16bn compared to Rs872.71m in the corresponding period last year.

Reflecting this massive bottom-line expansion, the company's basic and diluted earnings per share (EPS) jumped to Rs10.11 from Rs4.08 in Q1 2025.

The primary catalyst for this exceptional profitability was robust top-line growth coupled with highly favorable cost dynamics.

WAFI’s net revenue posted a strong 35% year-on-year increase, rising to Rs134.57bn from Rs99.43bn.

Concurrently, the cost of products sold grew at a slower pace of 31%, settling at Rs122.19bn.

Because revenue growth comfortably outpaced direct production costs, the company’s gross profit nearly doubled, skyrocketing by 97% to Rs12.38bn compared to Rs6.29bn in the prior year.

On the operational front, core overheads grew at a measured pace.

Distribution and marketing expenses rose by 13% to Rs2.66bn, while administrative expenses increased by 12% to Rs3.02bn.

The company did face headwinds from a spike in other expenses (which jumped to Rs1.45bn) and a 52% drop in other income (falling to Rs415.61m).

However, the sheer magnitude of the gross margin expansion easily absorbed these pressures, driving the operating profit up by a phenomenal 3.5x to Rs5.66bn.

Below the operating line, WAFI found additional relief in its debt servicing, with finance costs dropping 19% to Rs484.63m.

While the share of profit from its associate declined by 30% to Rs395.93m, the powerful operational performance pushed the profit before income tax up to Rs5.57bn.

This pre-tax growth was also aided by the complete absence of final taxes and minimum tax differentials this quarter, which had cost Rs123.79m in Q1 2025.

The company absorbed a massive spike in total income tax expense, which leaped to Rs3.41bn from just Rs579.95m last year (driven entirely by a surge in current taxation). Despite this heavy tax burden, Wafi Energy securely closed the quarter with its impressive leap in final net profit, settling at Rs2.16bn.

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