Pakistan Oxygen Limited (PSX: PAKOXY) has announced stellar financial results for the calendar year ended December 31, 2025, with net profit more than doubling to Rs1.67 billion, up from Rs711.76 million in CY2024. The exceptional performance was driven by robust sales growth, sharp cost reductions, and significantly lower finance costs.
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Earnings per share (EPS) surged to Rs19.16, compared to Rs8.17 in the previous year—a 134.5% increase in shareholder returns.
Financial Highlights
| Metric | CY2025 | CY2024 | Change |
|---|---|---|---|
| Net Profit | Rs1.67B | Rs711.76M | ▲ +134.5% |
| EPS | Rs19.16 | Rs8.17 | ▲ +134.5% |
| Net Sales | Rs13.05B | Rs11.35B | ▲ +15.0% |
| Gross Profit | Rs5.24B | Rs3.06B | ▲ +71.2% |
| Gross Margin | 40.2% | 27.0% | ▲ +13.2 pp |
| Operating Profit | Rs4.12B | Rs2.18B | ▲ +89.5% |
| Finance Cost | Rs483.16M | Rs999.10M | ▼ -51.6% |
What Drove the Growth
Three factors powered PAKOXY’s exceptional performance:
| Driver | Impact |
|---|---|
| Revenue Growth | Net sales up 15% to Rs13.05B |
| Cost of Sales Down | Declined 5.77% to Rs7.81B |
| Finance Costs Halved | Dropped 51.6% to Rs483.16M |
The Margin Story
Gross profit skyrocketed 71.2% to Rs5.24 billion, with gross margin expanding to an impressive 40.2% from 27.0%—a 13.2 percentage point improvement.
This margin expansion came from:
Higher sales across industrial gases segment
Improved pricing realization
Lower input costs (cost of sales down 5.77%)
Operational efficiencies in production
Cost Management Breakdown
| Expense Category | CY2025 | CY2024 | Change |
|---|---|---|---|
| Distribution & Marketing | Rs417.80M | Rs548.84M | ▼ -23.9% |
| Administrative Expenses | Rs425.16M | Rs343.10M | ▲ +23.9% |
| Other Operating Expenses | Rs317.17M | Rs137.39M | ▲ +130.9% |
| Total Operating Expenses | Rs1.16B | Rs1.03B | ▲ +12.7% |
| Finance Cost | Rs483.16M | Rs999.10M | ▼ -51.6% |
Despite higher admin and other expenses, operating profit still nearly doubled, demonstrating the strength of gross margin expansion.
Tax and Bottom Line
| Metric | CY2025 | CY2024 | Change |
|---|---|---|---|
| Profit Before Tax | Rs3.64B | Rs1.14B | ▲ +218.1% |
| Taxation | Rs1.97B | Rs432.84M | ▲ +355.5% |
| Net Profit | Rs1.67B | Rs711.76M | ▲ +134.5% |
Tax expense rose sharply—reflecting higher profitability—but net profit still more than doubled.
What Analysts Say
“PAKOXY delivered a textbook performance: revenue up, costs down, and finance charges halved. The 40% gross margin is particularly striking—it shows pricing power and operational excellence in the industrial gases sector. This is one of the strongest results we’ve seen this reporting season.”
— Senior Analyst, Karachi
“The 134% EPS growth sends a clear signal to the market. PAKOXY has emerged as a standout performer in the chemical and gas sector, with momentum that could carry into 2026.”
Sector Context
Pakistan’s industrial gases sector has shown resilience despite broader economic challenges:
| Factor | Impact on PAKOXY |
|---|---|
| Industrial Demand | Healthcare, manufacturing, and welding sectors stable |
| Pricing Environment | Favorable pricing supported margins |
| Import Substitution | Local production gaining preference |
| Cost Pressures | Managed through efficiency gains |
Key Takeaways for Investors
| Investor Type | Implication |
|---|---|
| Current Shareholders | Strong EPS growth; watch dividend potential |
| Prospective Investors | Margin expansion and cost control are compelling |
| Institutional Investors | Quality play in chemical sector |
| Traders | Results likely to support price momentum |
