Karachi: Azgard Nine Limited has reported a strong improvement in profitability for the nine months ended March 31, 2026, driven by lower finance costs and improved operational efficiency, despite a slight decline in net sales. The company’s Board of Directors approved the financial results at its meeting held on April 29, 2026, and did not recommend any cash dividend, bonus shares, or right shares.

According to the company’s financial statement, net sales stood at Rs30.87 billion, marginally lower than Rs31.01 billion recorded during the corresponding period last year. Gross profit also eased slightly to Rs3.56 billion from Rs3.66 billion, reflecting stable operating performance amid a challenging business environment.

Despite the modest decline in revenue, profit after tax increased by 20.6% to Rs499.47 million, compared with Rs414.04 million in the same period of the previous year. Earnings per share (EPS) improved to Rs1.02, up from Rs0.84 a year earlier.

The improvement in earnings was largely supported by a significant reduction in finance costs, which fell to Rs590.66 million from Rs871.77 million during the comparative period. However, the company recognized an expected credit loss impairment of Rs33.13 million, while administrative expenses increased year-on-year.

For the quarter ended March 31, 2026, Azgard Nine posted a net profit of Rs177.36 million, compared with Rs214.22 million in the corresponding quarter of last year, translating into quarterly EPS of Rs0.36 versus Rs0.44.

The company’s balance sheet remained solid, with total equity increasing to Rs15.30 billion as of March 31, 2026, from Rs14.80 billion at the end of June 2025, supported by retained earnings and reserves. Meanwhile, total assets stood at Rs29.17 billion.

On the cash flow front, Azgard Nine generated Rs2.90 billion in net cash from operating activities during the nine-month period, a substantial improvement from Rs1.12 billion recorded a year earlier. The company also continued investing in its operations, with capital expenditures amounting to approximately Rs2.47 billion during the period.

The Board announced that no cash dividend, bonus shares, rights issue, or any other corporate action would be undertaken alongside the financial results.