Mughal Iron & Steel Industries Limited (MUGHAL) has announced its financial results for the first quarter ended September 30, 2026, reporting a significant decline in profitability compared with the corresponding period last year.

According to the financial statements approved by the company’s Board of Directors on October 30, 2026, the company recorded a standalone net profit of Rs. 224.15 million, down from Rs. 997.26 million in the same quarter of the previous year.

The company’s earnings per share (EPS) also declined to Rs. 0.61 compared with Rs. 2.70 reported in the corresponding quarter of 2025, reflecting pressure on overall earnings.

Revenue and Gross Profit Performance

Mughal Iron & Steel reported gross sales of Rs. 20.26 billion during the quarter, compared with Rs. 22.62 billion in the same period last year.

Net sales decreased to Rs. 17.15 billion from Rs. 20.09 billion, indicating weaker revenue performance. The company’s gross profit also dropped considerably to Rs. 1.45 billion against Rs. 3.45 billion in the corresponding period.

The decline in gross profit indicates pressure on the company’s operating performance during the quarter.

Finance Costs and Profitability

The company recorded finance costs of approximately Rs. 814.56 million during the quarter, compared with Rs. 968.81 million in the same period last year.

Despite lower finance costs, profitability remained under pressure due to the substantial decline in gross profit and revenue.

Profit before taxation stood at Rs. 188.02 million, compared with Rs. 2.01 billion in the corresponding quarter of the previous year. After taxation, standalone profit for the period reached Rs. 224.15 million.

Consolidated Financial Performance

On a consolidated basis, Mughal Iron & Steel reported net sales of Rs. 17.15 billion compared with Rs. 20.09 billion in the same quarter last year.

Consolidated gross profit declined to Rs. 1.50 billion from Rs. 3.45 billion, while profit for the period decreased to Rs. 201.40 million against Rs. 925.70 million.

Consolidated earnings per share also fell to Rs. 0.55 compared with Rs. 2.51 in the corresponding period.

These figures highlight the challenging financial performance of the company and its consolidated operations during the first quarter.

Financial Position and Cash Flows

As of September 30, 2026, the company’s standalone total assets stood at approximately Rs. 85.98 billion, compared with Rs. 86.09 billion at June 30, 2026.

The company’s consolidated total assets reached Rs. 93.70 billion, compared with Rs. 93.82 billion at the end of the previous financial year.

Standalone cash and bank balances decreased to Rs. 3.08 billion from Rs. 6.66 billion at June 30, 2026. On a consolidated basis, cash and bank balances stood at approximately Rs. 3.21 billion.

The cash flow statements also showed net cash used in operating activities of Rs. 2.26 billion on a standalone basis and Rs. 2.14 billion on a consolidated basis.

No Dividend Announced

Alongside the financial results, the Board of Directors announced no cash dividend, bonus shares or right shares for the quarter ended September 30, 2026.

The company disclosed its financial results to the Pakistan Stock Exchange on October 30, 2026, in accordance with applicable securities regulations.

Outlook

Mughal Iron & Steel’s first-quarter results reflect a challenging period, with lower sales, a substantial reduction in gross profit and a significant decline in earnings compared with the previous year.

Investors will likely monitor the company’s upcoming quarterly results for signs of improvement in revenue, profitability and cash flow performance.

The company’s ability to manage costs, maintain sales volumes and improve profit margins will remain important factors in determining its financial performance during the remaining quarters of FY2026-27.