International Steels Limited (ISL) has reported a significant increase in profitability for the first quarter ended September 30, 2026, with after-tax profit rising to Rs2.21 billion from Rs620.34 million in the corresponding period last year.

According to the company’s financial results submitted to the Pakistan Stock Exchange (PSX) on October 20, 2026, ISL recorded strong growth in revenue, operating profit and earnings per share during the quarter.

Revenue and Profitability Show Strong Growth

International Steels Limited reported revenue of Rs23.76 billion for the quarter ended September 30, 2026, compared with Rs20.92 billion in the same period last year. This represents an increase of approximately 13.6%.

The company’s gross profit increased to Rs3.41 billion from Rs2.35 billion a year earlier, reflecting improved profitability during the reporting period.

Operating profit also recorded substantial growth, reaching Rs2.35 billion compared with Rs1.42 billion in the corresponding quarter of 2025.

Net Profit Increases More Than Threefold

ISL’s profit before taxation climbed to Rs3.46 billion from Rs983.84 million in the same quarter last year. After accounting for income tax expenses of Rs1.25 billion, the company posted a net profit of Rs2.21 billion, up approximately 256% year-on-year.

Earnings per share (EPS) increased to Rs5.07 from Rs1.43 in the corresponding period last year, highlighting the improvement in the company’s reported earnings.

Other income also rose considerably to Rs2.07 billion from Rs17.62 million a year earlier. This was a significant contributor to the increase in profit before taxation. Meanwhile, finance costs increased to Rs490.20 million from Rs274.44 million, while other expenses rose to Rs472.61 million from Rs180.76 million.

Financial Position and Cash Flow

The company’s total assets stood at Rs71.44 billion as of September 30, 2026, compared with Rs55.59 billion at June 30, 2026. Shareholders’ equity increased to Rs29.02 billion from Rs26.81 billion over the same period.

However, short-term borrowings increased to Rs21.58 billion from Rs10.67 billion at the end of June 2026. The company’s cash flow statement also showed net cash used in operating activities of Rs10.18 billion during the quarter, compared with Rs9.10 billion in the same period last year. Net cash generated from financing activities amounted to Rs10.87 billion, helping offset the operating cash outflow.

These figures highlight the importance of monitoring working capital, borrowing requirements and cash generation alongside the company’s improved reported profitability.

No Dividend Announced for the Quarter

The company’s board of directors, in its meeting held on October 20, 2026, did not recommend a cash dividend, bonus shares or right shares for the quarter ended September 30, 2026. No other entitlement or corporate action was announced in the filing.

The company stated that its quarterly report would be transmitted through the Pakistan Unified Corporate Actions Reporting System (PUCARS) within the prescribed timeframe and made available on its official website.

Outlook

International Steels Limited began FY2027 with substantial year-on-year growth in revenue, operating profit and net earnings. Its higher earnings per share may attract attention from market participants assessing the company’s latest financial performance.

Nevertheless, the sharp rise in other income, increased short-term borrowings and negative operating cash flow are important factors to consider when evaluating the sustainability of its earnings and overall financial position.

Investors should review the company’s complete quarterly report and subsequent disclosures before making investment decisions.