Nishat Chunian Limited (PSX: NCL) has reported a robust 54% increase in its consolidated profit after taxation for the nine months ended March 31, 2026, reaching Rs1.11 billion compared to Rs724.84 million in the same period last year. Earnings per share (EPS) improved to Rs4.64 from Rs3.02 in 9MFY25.
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The primary driver of this bottom-line growth was a notable improvement in core margins, which entirely offset a contraction in top-line sales. While net revenue declined by 4% year-on-year to Rs65.01 billion, the company slashed its cost of sales at a faster pace of 6% to Rs57.01 billion, resulting in a 13% expansion in gross profit to Rs8.0 billion.
Operational and Financial Highlights
| Metric | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Net Profit | Rs1.11bn | Rs724.84m | +54% |
| Earnings Per Share (EPS) | Rs4.64 | Rs3.02 | +54% |
| Gross Profit | Rs8.0bn | Rs7.07bn | +13% |
| Profit from Operations | Rs5.93bn | Rs5.32bn | +11% |
| Profit Before Tax | Rs1.47bn | Rs837.29m | +76% |
On the operational front, overheads escalated with distribution costs rising 7% to Rs1.55 billion, administrative expenses increasing 11% to Rs541.87 million, and other operating expenses spiking 20% to Rs308.87 million. Despite these rising costs and a 26% drop in other operating income, the strong gross margin expansion pushed the profit from operations up by 11% to Rs5.93 billion.
Below the operating line, finance costs saw a slight 3% increase to Rs3.83 billion. However, operational gains easily absorbed this, pushing pre-levy profit up 32% to Rs2.09 billion. A 17% reduction in statutory levies to Rs619.73 million further amplified pre-tax growth, causing profit before taxation to surge by 76% to Rs1.47 billion.
Despite a massive spike in taxation (jumping 217% to Rs357.01 million), the strong pre-tax performance allowed the company to comfortably secure its 54% leap in final net profit for the nine-month period.
About Nishat Chunian Limited
Nishat Chunian Limited (PSX: NCL) is a flagship company of the Nishat Group, operating a state-of-the-art composite textile mill. The company is engaged in the manufacturing and sale of spun yarn, woven and knitted fabric, processing, home textile, and garments, serving both domestic and international markets.
