BF Biosciences Reports 16% Increase in Quarterly Profit as Revenue Climbs 14%
BF Biosciences Limited (PSX: BFBIO) has reported a 16% increase in profit after tax for the first quarter ended September 30, 2026, supported by higher sales, improved gross profit margins and strong growth in its in-market generic business.
According to the company’s unaudited interim financial results, revenue increased to Rs. 2.78 billion during the quarter, compared with Rs. 2.43 billion in the corresponding period last year, representing year-on-year growth of 14%.
The pharmaceutical company’s gross profit also recorded significant improvement, rising to Rs. 1.28 billion from Rs. 1.04 billion in the same period last year. Consequently, the gross profit margin improved to 46%, compared with 43% previously. The company attributed the improvement primarily to a change in its sales mix.
Profit before tax increased to Rs. 294 million against Rs. 270.66 million in the corresponding quarter of the previous year. Meanwhile, profit after tax reached Rs. 184.88 million, up from Rs. 159.52 million, reflecting growth of approximately 16%.
Earnings per share also improved to Rs. 2.09 from Rs. 1.81 in the corresponding period last year, indicating better profitability for shareholders.
Strong Growth in Generic Pharmaceutical Sales
A notable development during the quarter was the 31% growth in in-market generic sales, highlighting stronger demand for the company’s generic pharmaceutical products.
However, institutional sales declined by 36%. According to management, this decrease was primarily due to differences in the timing of orders from government institutions, which fluctuate depending on tender awards and delivery schedules. Certain supplies made during the corresponding period last year are scheduled for delivery in subsequent quarters.
Management expects institutional sales to remain broadly aligned with the company’s overall growth trajectory.
Higher Operating Expenses
Alongside revenue growth, the company experienced an increase in operating expenses. Selling and distribution expenses rose by 22%, mainly due to expansion of the field force, increased marketing activities and inflationary pressures.
Administrative expenses also increased by approximately Rs. 34 million compared with the corresponding period last year. The increase reflects additional administrative employees hired in areas including human resources, administration, regulatory affairs and supply chain management to support the company’s business expansion.
Despite these higher expenses, BF Biosciences managed to improve its overall profitability during the quarter.
Investment in Business Expansion
The company’s financial statements also highlight continued investment in operational capacity. Property, plant and equipment stood at approximately Rs. 4.87 billion as of September 30, 2026, compared with Rs. 4.63 billion at June 30, 2026.
During the quarter, the company incurred approximately Rs. 315.78 million in fixed capital expenditure, reflecting continued investment in its infrastructure and operational capabilities.
Furthermore, the company reported operating cash flow of Rs. 244.64 million, compared with Rs. 46.33 million in the corresponding period last year.
Outlook
BF Biosciences’ first-quarter performance reflects positive momentum in revenue generation and profitability, supported particularly by growth in generic pharmaceutical sales and improved gross margins.
Although higher distribution and administrative expenses remain important considerations, the company’s investment in infrastructure, workforce and business expansion could support its future growth.
Investors will likely monitor the company’s ability to sustain sales momentum, manage operating costs and benefit from the expected recovery in institutional sales in the coming quarters.
Overall, the September 2026 quarterly results demonstrate improved financial performance, with higher revenue, stronger earnings and better gross margins compared with the same period last year.
