KARACHI: Ittehad Chemicals Limited (PSX: ICL) has reported a strong financial performance for the nine months ended March 31, 2026, posting double-digit growth in profitability driven by higher sales despite rising costs and finance expenses. The company announced its financial results following a meeting of its Board of Directors held on April 27, 2026.

According to the company’s unconsolidated financial statements, net sales increased by 18.6% to Rs24.12 billion during the nine-month period, compared with Rs20.34 billion in the corresponding period last year. However, the increase in the cost of sales led to a slight decline in gross profit, which stood at Rs3.62 billion versus Rs3.74 billion a year earlier.

Despite the pressure on gross margins, Ittehad Chemicals improved its operating performance through lower selling and distribution expenses and higher other operating income. As a result, operating profit rose to Rs2.15 billion, compared with Rs2.08 billion in the same period last year.

The company reported a profit after tax of Rs1.055 billion, marking a 13.7% increase from Rs927.8 million recorded during the corresponding period of the previous year. Earnings per share (EPS) improved to Rs10.55, up from Rs9.28.

On a quarterly basis, however, profitability softened. For the quarter ended March 31, 2026, net profit declined to Rs280.8 million from Rs313.5 million in the same quarter last year, while quarterly EPS eased to Rs2.81 from Rs3.13, reflecting continued pressure from operating and financing costs.

The company’s financial position also strengthened during the reporting period. Total assets increased to Rs21.80 billion as of March 31, 2026, from Rs20.09 billion at the end of June 2025, while shareholders’ equity rose to Rs11.07 billion, supported by higher retained earnings. Cash and bank balances more than doubled to approximately Rs1.08 billion, indicating improved liquidity.

The Board of Directors did not announce any cash dividend, bonus shares, or right shares along with the financial results.

The latest results highlight Ittehad Chemicals’ ability to deliver earnings growth amid a challenging cost environment, supported by higher revenues, disciplined operating expenses, and a stronger balance sheet. Investors will likely monitor whether the company can sustain revenue momentum and protect margins in the remaining months of the financial year.