Pakistan State Oil (PSO), the country’s largest oil marketing company, has reported a staggering 150% surge in its net profit for the nine months ended March 31, 2026, reaching Rs38.1 billion compared to Rs15.2 billion in the same period last year. Earnings per share (EPS) jumped to Rs81.24 from Rs32.45 in 9MFY25.
Read More: Engro Polymer Announces New Chairman and CEO After Annual Meeting
The exceptional profitability was driven by substantial inventory gains, robust gross margins, and a sharp decline in finance costs, more than compensating for a contraction in top-line revenue.
| Metric | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Net Profit | Rs38.1bn | Rs15.2bn | +150% |
| Earnings Per Share (EPS) | Rs81.24 | Rs32.45 | +150% |
| Net Sales | Rs2,953bn | Rs3,367bn | -12% |
| Gross Profit | Rs158.4bn | Rs84.2bn | +88% |
| Profit from Operations | Rs67.5bn | Rs36.2bn | +86% |
Revenue and Margin Dynamics
While net sales experienced a 12% year-on-year decline to Rs2,953 billion, the company’s gross profit more than doubled, soaring 88% to Rs158.4 billion. This dramatic margin expansion was primarily attributable to inventory gains resulting from rising international oil prices during the period, as well as effective cost management on direct expenses.
| Expense Category | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Distribution & Selling Expenses | Rs78.6bn | Rs39.8bn | +98% |
| Administrative Expenses | Rs12.3bn | Rs8.2bn | +50% |
| Finance Costs | Rs40.3bn | Rs64.9bn | -38% |
| Other Income | Rs28.8bn | Rs9.4bn | +206% |
Operational Performance
Total operating expenses increased significantly, with distribution and selling expenses nearly doubling to Rs78.6 billion and administrative expenses rising 50% to Rs12.3 billion. However, the company received a substantial boost from other income, which surged 206% to Rs28.8 billion, providing meaningful support to the bottom line.
Finance Costs and Taxation
A key driver of profitability was the 38% reduction in finance costs to Rs40.3 billion from Rs64.9 billion, reflecting improved working capital management and lower interest rates. Profit before taxation jumped to Rs56.1 billion, up 164% from Rs21.2 billion in 9MFY25.
The company recorded a taxation expense of Rs18.0 billion for the period, compared to Rs6.0 billion last year, reflecting the significantly higher taxable profits.
About Pakistan State Oil
Pakistan State Oil (PSO) is the country’s largest oil marketing company, serving millions of customers across Pakistan through an extensive network of retail outlets and storage facilities. PSO plays a critical role in ensuring the country’s energy security by managing the supply chain for petrol, diesel, and other petroleum products. The company is listed on the Pakistan Stock Exchange and is majority-owned by the Government of Pakistan.
