Azgard Nine Limited Reports 24% Rise in Profit After Tax for FY2026

Azgard Nine Limited has reported improved profitability for the financial year ended June 30, 2026, with the company’s profit after tax rising to Rs869.87 million, compared with Rs701.80 million in the previous financial year. This represents an increase of approximately 24% year-on-year. The financial results were presented to the Pakistan Stock Exchange following a board meeting held on October 1, 2026. 284171

According to the company’s financial statements, revenue from contracts with customers increased to approximately Rs42.50 billion during FY2026, up from Rs40.60 billion a year earlier. Gross profit also improved to Rs5.05 billion, compared with Rs4.98 billion in FY2025. However, the increase in gross profit was accompanied by higher operating expenses, including selling and distribution, administrative and other expenses. 284171

The company recorded an operating profit of Rs2.59 billion, compared with Rs2.90 billion in the preceding year. Financing costs also remained significant, with finance costs amounting to approximately Rs785.32 million, while monetary interest expense stood at around Rs316.93 million.

Despite these pressures, Azgard Nine reported profit before income tax of Rs978.84 million, compared with Rs945.04 million in FY2025. After accounting for income tax, profit after tax climbed to Rs869.87 million, resulting in basic earnings per share of Rs1.77, compared with Rs1.43 in the previous year. 284171

Financial Position Strengthens

The company’s balance sheet also showed growth during the year. Total equity increased to approximately Rs15.64 billion as of June 30, 2026, compared with Rs14.80 billion a year earlier. Total assets rose to approximately Rs32.17 billion, up from Rs29.22 billion. 284171

Non-current assets increased significantly, particularly property, plant and equipment, which stood at approximately Rs14.32 billion compared with Rs12.09 billion in FY2025. Current assets, however, declined to about Rs17.38 billion from Rs16.84 billion, reflecting changes across inventories, receivables, investments and cash balances. 284171

Cash Flow Remains an Important Focus

Azgard Nine generated approximately Rs2.18 billion in net cash from operating activities during FY2026, compared with Rs2.42 billion in the previous year. At the same time, investment activities consumed approximately Rs3.53 billion, mainly reflecting expenditure on property, plant and equipment.

Financing activities resulted in a net cash outflow of approximately Rs749.39 million. As a result, the company recorded a net decrease of around Rs2.10 billion in cash and cash equivalents during the year. Cash and cash equivalents at year-end stood at approximately negative Rs328.55 million, compared with positive Rs1.78 billion a year earlier. 284171

No Cash Dividend Announced

Despite the improvement in annual profitability, the company announced no cash dividend, bonus shares or right shares. The board also reported no other corporate action or price-sensitive information in its October 1 filing. 284171

The company’s Annual General Meeting is scheduled for October 27, 2026, at its registered office in Lahore. The share transfer books are scheduled to remain closed from October 21 through October 27, 2026. 284171

Overall Outlook

Azgard Nine’s FY2026 results present a mixed but generally positive picture. Revenue and profit after tax improved, while earnings per share also increased. At the same time, higher financing costs, investment spending and a decline in year-end cash and cash equivalents remain important areas for investors to watch.

The results suggest that the company maintained its ability to generate profits despite cost and financing pressures. Future performance will likely depend on revenue growth, operating efficiency, financing costs and the company’s ability to manage its investment and working-capital requirements.

This article is based on Azgard Nine Limited’s financial statements and corporate announcement for the year ended June 30, 2026. The figures and statements above are drawn from the uploaded document.