Pakistan Refinery Limited (PRL) has made a strong financial turnaround in the year ended June 30, 2026, reporting a net profit of Rs15.78 billion, compared with a net loss of Rs4.66 billion in the previous financial year.
According to the company’s financial results announced on August 13, 2026, PRL’s revenue from contracts with customers rose to Rs350.84 billion in FY2026 from Rs310.35 billion a year earlier, reflecting continued strength in its top-line performance.
Gross profit rises sharply
The company’s cost of sales stood at Rs318.45 billion, resulting in a gross profit of Rs32.39 billion. This represents a major improvement from the gross profit of only Rs1.86 billion recorded in FY2025.
PRL also reported an operating profit of Rs28.60 billion, compared with an operating loss of Rs176.56 million in the preceding year. The turnaround was supported by the significant improvement in gross profitability, despite operating expenses remaining substantial.
Profitability returns
After accounting for finance costs of Rs4.45 billion and the share of loss from an associate, PRL posted a profit before taxation of Rs24.15 billion, compared with a pre-tax loss of Rs3.96 billion in FY2025.
The company incurred taxation of Rs8.37 billion, leaving a profit after tax of Rs15.78 billion. Consequently, earnings per share improved sharply to Rs25.05, compared with a loss per share of Rs7.40 in FY2025.
The company’s total comprehensive income also turned positive at Rs16.17 billion, compared with a comprehensive loss of Rs1.71 billion in the previous year.
Balance sheet strengthens
PRL’s total assets increased to Rs130.75 billion as of June 30, 2026, from Rs107.94 billion a year earlier. Equity also strengthened considerably, reaching Rs42.77 billion, compared with Rs26.60 billion at the end of FY2025.
Unappropriated profit moved into positive territory at Rs13.24 billion, against an accumulated loss of Rs2.93 billion in the previous year.
Operating cash flow improves significantly
The company generated Rs15.91 billion in net cash from operating activities during FY2026, a substantial improvement from the Rs3.64 billion cash outflow recorded in FY2025.
However, cash and cash equivalents declined to Rs1.32 billion at the end of FY2026 from Rs2.84 billion a year earlier, mainly reflecting investing and financing cash outflows during the year.
No dividend recommended
Despite the strong return to profitability, PRL’s board has recommended a nil dividend for the year ended June 30, 2026. The company also announced that its Annual General Meeting will be held on October 3, 2026.
Overall, PRL’s FY2026 results mark a significant reversal from the losses reported in FY2025. The sharp improvement in gross profit, operating earnings, net income and equity highlights a substantially stronger financial position at the close of the year.
