Ismail Industries Limited, one of Pakistan’s leading confectionery and food manufacturing companies, has reported a decline in profitability despite achieving significant growth in sales during the first quarter ended September 30, 2026.
According to the company’s latest financial results submitted to the Pakistan Stock Exchange (PSX), consolidated net sales increased to Rs36.69 billion, compared with Rs30.35 billion in the corresponding quarter of the previous year, reflecting a growth of approximately 20.9%.
However, higher operating costs and other expenses affected the company’s bottom line. Consolidated cost of sales increased to Rs30.04 billion from Rs25.09 billion, while gross profit improved to Rs6.66 billion against Rs5.26 billion in the same period last year.
Despite the improvement in gross profit, the company’s operating profit increased moderately to Rs2.46 billion from Rs2.34 billion. Finance costs also rose to Rs1.72 billion compared with Rs1.64 billion in the corresponding period, adding pressure to overall earnings.
As a result, Ismail Industries recorded consolidated profit after taxation of Rs620.20 million for the quarter, down from Rs736.17 million a year earlier, representing a decline of approximately 15.8%.
Earnings per share also decreased to Rs9.75 from Rs12.34 in the corresponding quarter of the previous year.
On a standalone basis, the company’s net sales increased to Rs29.76 billion from Rs25.13 billion. However, profit after taxation declined to Rs741.28 million compared with Rs1.07 billion in the same period last year. Earnings per share stood at Rs11.17 against Rs16.06.
The company’s financial position showed growth in its asset base. Consolidated total assets reached Rs131.27 billion as of September 30, 2026, compared with Rs127.69 billion at June 30, 2026. Total shareholders’ equity stood at Rs29.68 billion.
The financial results indicate that Ismail Industries continued to achieve sales growth during the quarter, although higher costs and financing expenses weighed on profitability. Maintaining margins, managing financing costs and improving operational efficiency will remain important factors for the company’s financial performance in the coming quarters.
Investors will be watching the company’s upcoming results to assess whether its sales momentum can translate into stronger earnings and improved profitability.
