Ismail Industries Limited reported a profit attributable to shareholders of Rs2.74 billion for the nine-month period ended March 31, 2026, compared with Rs2.80 billion in the same period last year, reflecting a modest decline of around 2.1%.

The company’s financial results show that while sales continued to grow, profitability remained under pressure due to higher costs and expenses.

According to the consolidated financial statements, gross sales increased to Rs112.82 billion during the nine-month period, up from Rs107.79 billion a year earlier. After accounting for sales returns, discounts, export rebates and sales tax, net sales stood at Rs97.14 billion, compared with Rs94.26 billion in the corresponding period of 2025.

Gross Profit Comes Under Pressure

Despite the improvement in sales, Ismail Industries recorded a decline in gross profit. Gross profit fell to Rs18.13 billion from Rs19.20 billion a year earlier.

The reduction in gross profit indicates continued pressure on the company’s margins, as the cost of sales rose to Rs79.01 billion, compared with Rs76.06 billion in the same period last year.

Selling and distribution expenses also increased to Rs8.06 billion, while administrative expenses rose to approximately Rs1.69 billion.

As a result, operating profit declined to Rs8.38 billion, compared with Rs8.77 billion in the nine-month period ended March 31, 2025.

Bottom-Line Profit Remains Relatively Stable

After accounting for other operating expenses, finance costs, taxation and other items, profit before levies and taxation stood at Rs4.27 billion, compared with Rs4.14 billion last year.

Following levies and taxation, profit for the period attributable to shareholders of the holding company amounted to Rs2.74 billion, against Rs2.80 billion previously.

The company reported earnings per share of Rs41.28, compared with Rs42.16 in the corresponding period of the previous year.

The results also show that Ismail Industries generated Rs2.50 billion in total comprehensive income attributable to shareholders, compared with Rs2.93 billion a year earlier.

Higher Investment Spending Weighs on Cash Position

The company’s cash flow statement points to increased investment activity during the period.

Net cash generated from operating activities amounted to Rs7.86 billion, down from Rs8.67 billion in the same period last year.

Meanwhile, net cash used in investing activities increased substantially to Rs10.67 billion, compared with Rs5.07 billion a year earlier. Capital expenditure, including capital work in progress, amounted to Rs8.30 billion, significantly higher than Rs3.39 billion recorded in the previous period.

The increased investment spending contributed to a decline in cash and cash equivalents during the period.

No New Dividend Recommended

In its letter to the Pakistan Stock Exchange, Ismail Industries said its Board of Directors had recommended no cash dividend, bonus shares, right shares or other entitlement for the period ended March 31, 2026.

Overall, Ismail Industries delivered sales growth but faced profitability and cash-flow pressures during the nine months of FY2026. The company’s increased capital spending suggests continued investment in its operations, while the modest decline in earnings highlights the impact of higher costs on margins.

Source: Ismail Industries Limited’s unaudited consolidated and unconsolidated financial statements for the nine months ended March 31, 2026.