Khyber Tobacco Company Limited (KHTC) has reported a significant improvement in its financial performance for the first quarter ended September 30, 2026, with net profit rising to Rs180.89 million compared with Rs36.97 million in the corresponding period last year.

According to the company’s financial results submitted to the Pakistan Stock Exchange (PSX), revenue increased substantially during the quarter, reflecting a stronger performance compared with the same period of the previous financial year.

Revenue and Profitability Show Strong Improvement

Khyber Tobacco Company recorded net revenue of Rs3.03 billion during the quarter, up from Rs1.58 billion in the corresponding quarter of 2025. This represents an increase of approximately 91.3%.

The company’s gross profit also improved significantly, reaching Rs876.88 million compared with Rs263.46 million a year earlier.

Profit before taxation increased to Rs479.25 million from Rs39.12 million in the same period last year, highlighting a substantial improvement in the company’s reported operating performance.

After accounting for taxation of Rs298.36 million, the company posted a net profit of Rs180.89 million, compared with Rs36.97 million in the previous year’s corresponding quarter.

Earnings per share (EPS) also increased considerably to Rs26.13 from Rs5.34, reflecting the improvement in quarterly profitability.

Higher Finance and Distribution Costs

Despite the strong growth in revenue and gross profit, the company experienced higher expenses during the reporting period.

Finance costs increased to Rs146.82 million compared with Rs59.32 million in the corresponding quarter last year. Selling and distribution expenses also rose to Rs92.87 million from Rs40.22 million.

Administrative expenses stood at Rs145.50 million, compared with Rs140.84 million a year earlier.

The company also recorded an impairment loss on financial assets of Rs12.44 million during the quarter.

These expenses remain important factors to monitor in assessing the sustainability of the company’s improved profitability.

Balance Sheet Position

The company’s total assets increased to Rs22.68 billion as of September 30, 2026, compared with Rs19.74 billion at June 30, 2026.

Current assets reached Rs19.08 billion, with stock-in-trade accounting for Rs13.45 billion. Cash and bank balances improved to Rs296.18 million from Rs78.51 million at the end of the previous financial year.

Meanwhile, total equity increased to Rs2.86 billion from Rs2.68 billion, supported by the profit earned during the quarter.

Current liabilities stood at Rs19.16 billion, compared with Rs16.54 billion at June 30, 2026. The increase in liabilities and inventory levels will remain important considerations when evaluating the company’s financial position and working capital requirements.

Cash Flow and Dividend Announcement

According to the quarterly cash flow statement, Khyber Tobacco reported net cash used in operating activities of Rs74.96 million, compared with Rs660.22 million in the corresponding quarter last year.

The company generated Rs300 million through financing activities, while net cash used in investing activities amounted to Rs7.38 million. Consequently, cash and cash equivalents increased to Rs296.18 million at the end of September 2026.

The board of directors, in its meeting held on October 30, 2026, approved the quarterly financial results. However, the company announced no cash dividend, bonus shares, right shares or other corporate entitlement for the period.

Outlook

Khyber Tobacco Company’s first-quarter results reflect a substantial improvement in revenue, gross profit, net earnings and earnings per share compared with the corresponding period last year.

Going forward, investors may focus on whether the company can maintain its revenue growth while managing rising finance costs, working capital requirements and current liabilities.

Overall, the first-quarter performance marks a stronger start to FY2026-27 for Khyber Tobacco Company, although its future financial performance will depend on sustaining profitability and managing its financial obligations effectively.