Diamond Industries Limited has reported a significant improvement in profitability for the first quarter ended September 30, 2026, posting a net profit of Rs8.42 million compared to Rs1.75 million in the corresponding period last year.
According to the company’s unaudited financial results submitted to the Pakistan Stock Exchange (PSX), earnings per share (EPS) increased to Rs0.94, up from Rs0.19 in the same quarter of the previous year.
The company generated net sales of Rs202.42 million during the quarter, while the cost of raw materials sold stood at Rs189.83 million. This resulted in a gross profit of Rs12.59 million, representing a gross margin of approximately 6%.
Administrative expenses amounted to Rs8.99 million, while selling and distribution expenses stood at Rs203,682. Consequently, the company recorded an operating profit of Rs3.39 million, reversing the operating loss of Rs5.70 million reported in the corresponding period last year.
Other income played an important role in supporting the company’s overall profitability. Diamond Industries recorded other income of Rs9.48 million during the quarter, compared to Rs8.77 million in the same period last year.
As a result, profit before taxation increased to Rs12.87 million, compared to Rs3.07 million a year earlier. After accounting for taxation of approximately Rs4.46 million, the company reported a net profit of Rs8.42 million.
Despite the improvement in profitability, the company reported a negative total comprehensive income of Rs6.28 million. This was primarily due to an unrealized loss of Rs17.28 million arising from the remeasurement of investments available for sale, partially offset by other comprehensive income related to long-term investments in associated companies.
The company’s financial position showed total assets of Rs787.18 million as of September 30, 2026, compared to Rs802.16 million at the end of June 2026. Investments available for sale stood at Rs445.30 million, while cash and bank balances amounted to Rs6.84 million.
Cash flow from operating activities improved considerably, reaching Rs8.91 million compared to Rs318,213 in the corresponding quarter last year.
Meanwhile, the company’s board of directors did not recommend any cash dividend, bonus shares, or right shares for the quarter.
Overall, Diamond Industries’ first-quarter results reflect a notable improvement in sales generation, operating performance and bottom-line profitability. The increase in earnings per share and stronger operating cash flow are encouraging developments, although the decline in total comprehensive income highlights the impact of fluctuations in investment valuations.
Investors will likely monitor the company’s upcoming financial performance to assess whether it can sustain its improved profitability and strengthen its overall financial position during the remaining quarters of the fiscal year.
