Archroma Pakistan Limited (PSX: ARPL) has reported strong earnings for the first quarter of FY26. The company posted a profit after taxation of Rs442.0 million for the quarter ended December 31, 2025, marking a significant increase from Rs355.9 million in the same period last year.
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Earnings per share (EPS) surged to Rs12.79, up from Rs10.30 in Q1FY25.
Key Financial Drivers:
The profit growth was primarily driven by exceptional margin expansion, which more than compensated for a modest increase in top-line sales.
- Robust Gross Margin Expansion: Net sales grew by 8.67% YoY to Rs7.84 billion. However, the cost of sales rose at a slower pace of 4.26%, leading to a sharp 23.65% increase in gross profit to Rs2.03 billion.
- Strong Operational Leverage: Operating profit saw a remarkable surge of 63.73% to Rs794.3 million, demonstrating significant operational efficiency.
- Lower Finance Costs: The company also benefited from an 8.52% reduction in finance costs, contributing to the improved bottom line.
Condensed Statement of Profit or Loss (Q1 FY 2026 vs. Q1 FY 2025)
| Description | Q1 FY26 | Q1 FY25 | Change |
|---|---|---|---|
| Net Sales | Rs 7.84 bn | Rs 7.22 bn | +8.67% |
| Gross Profit | Rs 2.03 bn | Rs 1.64 bn | +23.65% |
| Operating Profit | Rs 0.79 bn | Rs 0.49 bn | +63.73% |
| Profit Before Tax | Rs 0.63 bn | Rs 0.32 bn | +96.15% |
| Profit After Tax | Rs 0.44 bn | Rs 0.36 bn | +24.12% |
| Earnings Per Share (PKR) | 12.79 | 10.30 | +24.17% |
Archroma’s results reflect a strong quarter characterized by effective cost management, improved pricing power, and disciplined operational control, leading to substantial profit growth.
