International Packaging Films Delivers Major Profit Growth in FY2026

International Packaging Films Limited (IPAK) has reported a significant improvement in its financial performance for the year ended June 30, 2026, with the company posting substantial growth in revenue, profitability and operating performance.

According to the financial results submitted to the Pakistan Stock Exchange on September 10, 2026, the company’s Board of Directors recommended a final cash dividend of Rs. 2.00 per share, equivalent to 20% for the financial year 2026. No right or bonus shares were recommended as part of the latest corporate action.

Revenue rises more than 22%

On a consolidated basis, International Packaging Films generated revenue of Rs. 42.17 billion during FY2026, compared with Rs. 34.37 billion in the previous year. This represents an increase of approximately 22.7%, highlighting stronger business activity during the year.

The improvement in revenue was accompanied by a sharp rise in gross profit. Consolidated gross profit reached Rs. 9.39 billion, compared with Rs. 4.99 billion in FY2025, an increase of nearly 88%.

Profitability improves sharply

The company also recorded a major improvement at the operating level. Consolidated operating profit increased to Rs. 8.14 billion from Rs. 3.82 billion a year earlier, representing growth of around 113%.

Profit before tax climbed to Rs. 6.28 billion, compared with Rs. 1.61 billion in FY2025. After taxation, consolidated profit stood at Rs. 4.95 billion, against Rs. 664 million in the previous year.

As a result, basic and diluted earnings per share increased significantly to Rs. 6.73 from Rs. 1.64.

Deferred tax impacts reported profit

The company noted that its consolidated results continued to include deferred tax effects and related consolidation adjustments. During FY2026, a net deferred tax charge of Rs. 452 million was recognized.

The company stated that this was a non-cash accounting charge. Excluding its impact, consolidated profit after tax would have been approximately Rs. 5.40 billion, compared with the reported Rs. 4.95 billion.

Stronger financial position

International Packaging Films’ consolidated total assets increased to Rs. 47.21 billion as of June 30, 2026, from Rs. 43.62 billion a year earlier.

Shareholders’ equity also improved substantially, reaching Rs. 18.14 billion, compared with Rs. 13.90 billion at the end of FY2025. Including non-controlling interests, total equity stood at Rs. 21.12 billion.

The company also strengthened its operating cash generation. Net cash generated from consolidated operating activities amounted to Rs. 2.20 billion during FY2026, compared with a net operating cash outflow of Rs. 1.61 billion in the previous year.

Standalone performance also improves

At the standalone level, the company reported revenue of Rs. 13.35 billion, compared with Rs. 15.56 billion in FY2025. Despite the lower revenue, gross profit increased to Rs. 3.08 billion from Rs. 2.69 billion.

Standalone profit after tax rose to Rs. 1.32 billion, compared with Rs. 851 million in the previous year, while earnings per share increased from Rs. 1.16 to Rs. 1.79.

The standalone balance sheet showed shareholders’ equity rising to Rs. 15.72 billion from Rs. 14.84 billion. Meanwhile, total liabilities declined to Rs. 9.09 billion from Rs. 12.19 billion.

AGM scheduled for October 26

The company has scheduled its Annual General Meeting for October 26, 2026, at 9:30 AM at the PSX Auditorium in Karachi.

The share transfer books will remain closed from October 19 to October 26, 2026, both days inclusive. The company said its annual report for the year ended June 30, 2026 would also be made available through PUCARS and on its website.

Outlook

International Packaging Films’ FY2026 results show a substantial improvement in consolidated profitability and operating cash generation. The sharp increase in gross profit and operating profit, alongside the rise in earnings per share, marks a considerably stronger financial performance compared with FY2025.

The recommended Rs. 2 per share final cash dividend further highlights the company’s decision to return part of the year’s improved performance to shareholders, subject to the relevant approval process.