Mughal Iron & Steel Profit More Than Doubles to Rs. 2.49 Billion in FY2026

Mughal Iron & Steel Industries Limited (MISIL) has reported a significant improvement in profitability for the financial year ended June 30, 2026, with standalone profit after tax rising to Rs. 2.49 billion, compared with Rs. 965.5 million in the previous year.

The company disclosed the results after its Board of Directors approved the audited standalone and consolidated financial statements at a meeting held on September 15, 2026. Alongside the financial results, the board recommended a final cash dividend of Rs. 2.00 per ordinary share and Ordinary Class-C share, equivalent to 20%.

Profitability Shows Strong Improvement

According to the standalone income statement, Mughal Iron & Steel recorded net sales of Rs. 77.96 billion during FY2026, compared with Rs. 89.41 billion a year earlier. Despite the decline in sales, gross profit increased to Rs. 8.66 billion from Rs. 8.14 billion.

A major factor supporting the bottom line was the reduction in finance costs. Finance costs fell to Rs. 3.82 billion from Rs. 5.72 billion in FY2025. As a result, profit before taxation increased to Rs. 3.50 billion, compared with Rs. 1.84 billion previously. Profit after taxation subsequently reached Rs. 2.49 billion, up from Rs. 965.5 million.

The improvement was also reflected in earnings per share. Basic and diluted EPS increased to Rs. 6.75 from Rs. 2.83 in the preceding year.

Consolidated Results Also Improve

At the consolidated level, the group posted Rs. 2.19 billion in profit for FY2026, compared with Rs. 852.2 million in FY2025. Profit attributable to owners of the company stood at Rs. 2.19 billion, while earnings per share increased to Rs. 5.95 from Rs. 2.50.

Consolidated gross profit rose to Rs. 8.70 billion from Rs. 8.09 billion, while finance costs declined to Rs. 3.75 billion from Rs. 5.65 billion.

Assets and Equity Expand

The company’s standalone total assets increased to Rs. 86.09 billion as of June 30, 2026, compared with Rs. 67.69 billion a year earlier. Property, plant and equipment rose to Rs. 31.42 billion from Rs. 20.36 billion.

Cash and bank balances also more than doubled to Rs. 6.66 billion, compared with Rs. 3.09 billion at the end of FY2025.

Standalone equity increased to Rs. 36.22 billion from Rs. 28.82 billion, supported in part by higher unappropriated profit and a larger revaluation surplus on property, plant and equipment.

Dividend and Upcoming Corporate Actions

The board recommended a 20% final cash dividend, or Rs. 2 per share, for shareholders whose names appear on the Register of Members on October 19, 2026. The company has not recommended any bonus or right shares.

The board has also proposed several matters subject to shareholders’ approval. These include providing up to Rs. 500 million in advance/running finance to subsidiary Mughal Energy Limited and a corporate guarantee facility of up to Rs. 3 billion for the subsidiary.

In addition, shareholders will be asked to consider an amendment to the company’s Memorandum and Articles of Association to increase authorized share capital and to allow the company to issue Ordinary Class-B shares.

Annual General Meeting Set for October 28

Mughal Iron & Steel has scheduled its Annual General Meeting for October 28, 2026, at 11:45 a.m. at Avari Hotel, Shahrah-e-Quaid-e-Azam, Lahore.

The company’s share transfer books will remain closed from October 20 to October 28, 2026, both days inclusive. Transfers received by the share registrar by the close of business on October 19 will be considered for dividend entitlement and participation in the AGM.

Cash Flow and Financing

The financial statements also show substantial investment in property, plant and equipment. Standalone capital expenditure on property, plant and equipment amounted to Rs. 3.85 billion during FY2026.

The company generated Rs. 6.37 billion in net cash from financing activities, supported by Rs. 12.41 billion in proceeds from long-term financing. Cash and cash equivalents stood at Rs. 7.69 billion at the end of the year, compared with Rs. 3.33 billion at the beginning of FY2026.

At the consolidated level, capital expenditure was higher at Rs. 5.73 billion, while net cash generated from financing activities reached Rs. 12.47 billion. Consolidated cash and cash equivalents ended the year at Rs. 7.79 billion.

Conclusion

Mughal Iron & Steel’s FY2026 results show a substantial improvement in profitability despite lower net sales compared with the previous year. Higher gross profit and significantly lower finance costs helped lift both standalone and consolidated earnings. The proposed Rs. 2 per share final dividend, alongside planned financing support and a corporate guarantee for Mughal Energy, will be among the key matters for shareholders to consider at the upcoming AGM.