Thal Industries’ Nine-Month Profit Drops 59% as Sales Decline and Finance Costs Weigh on Earnings

KARACHI: Thal Industries Corporation Limited reported a sharp decline in profitability for the nine-month period ended June 30, 2026, as lower sales, shrinking margins, and elevated finance costs significantly impacted the company’s financial performance. The results were approved by the Board of Directors in its meeting held on July 25, 2026.

According to the company’s unaudited financial statements, net sales fell to Rs. 22.25 billion during the nine-month period, compared with Rs. 37.40 billion in the corresponding period last year. The decline in revenue also reduced gross profit to Rs. 3.03 billion, down from Rs. 4.35 billion a year earlier.

Operating profit decreased substantially to Rs. 1.69 billion, compared with Rs. 3.06 billion in the same period of the previous year. Although other income increased to Rs. 351.36 million, the benefit was outweighed by higher finance costs of Rs. 1.13 billion and other expenses, resulting in a significant reduction in earnings.

As a result, profit after tax declined to Rs. 499.49 million, representing a nearly 59% decrease from Rs. 1.21 billion recorded during the same period last year. Earnings per share (EPS) also dropped to Rs. 33.25, compared with Rs. 80.74 in the corresponding period of 2025.

For the third quarter alone, the company posted a profit after tax of Rs. 32.39 million, sharply lower than Rs. 1.15 billion reported in the same quarter last year. Quarterly EPS stood at Rs. 2.16, compared with Rs. 76.71 a year earlier, reflecting the challenging operating environment faced by the company.

Despite weaker earnings, Thal Industries maintained a solid financial position. Total equity increased to approximately Rs. 12.37 billion as of June 30, 2026, while total assets stood at Rs. 37.75 billion. Cash and bank balances also improved significantly to Rs. 2.79 billion, supported by stronger financing-related cash inflows during the period.

The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or any other corporate action alongside the quarterly financial results.