Mughal Iron & Steel Industries Limited (PSX: MUGHAL) today announced a remarkable financial turnaround for the six-month period ended December 31, 2025, with profits skyrocketing by over 660%, according to the company’s filing on the Pakistan Stock Exchange.
The company posted a profit after tax of Rs1.66 billion, a substantial increase from Rs217 million in the same period last year. This performance translates into earnings per share (EPS) of Rs4.51, compared to just Rs0.65 in the previous year.
This dramatic rise in profitability was achieved despite a 10.8% decline in net sales, which stood at Rs41.75 billion. The key driver was a significant improvement in operational efficiency. The cost of sales fell sharply by 14.8%, allowing the company to boost its gross profit by nearly 30% to Rs5.44 billion. Consequently, the gross margin expanded to an impressive 13%, signaling effective cost management and a favorable product mix.
A major factor contributing to the bottom-line growth was a substantial 45% reduction in finance costs, which fell to Rs1.89 billion. This decrease in borrowing costs provided significant relief and directly boosted net profitability.
The company also benefited from a doubling of other income, which reached Rs322 million. However, this was partially offset by a near-doubling of sales and marketing expenses (up 94.9% to Rs144 million) and a sharp 623.5% increase in other charges, attributed to non-recurring items. Additionally, the company adopted a more conservative financial stance, recording a charge of Rs31 million for expected credit losses, compared to a reversal in the prior year.
The effective tax expense rose to Rs1.27 billion, reflecting the higher pre-tax profits.
Key Highlights (Half-Year ended Dec 31, 2025):
- Profit After Tax: Rs1.66 billion (Up 666% YoY)
- EPS: Rs4.51 (Up from Rs0.65 YoY)
- Net Sales: Rs41.75 billion (Down 10.8% YoY)
- Gross Profit: Rs5.44 billion (Up 29.7% YoY)
- Gross Margin: 13% (Improved from 9% YoY)
- Finance Cost: Rs1.89 billion (Down 45% YoY)
The results underscore Mughal Steel’s successful strategy in navigating a challenging market environment by focusing on internal efficiencies and cost optimization, paving the way for an “iron-clad recovery.”
