ZIL Limited has started 2026 on a positive note, reporting improved sales and profitability for the quarter ended March 31, 2026, according to its unaudited financial results approved by the company’s Board of Directors on April 23, 2026. The company did not announce any cash dividend, bonus shares, right shares or other corporate action for the quarter.
Sales climb to Rs1.45 billion
ZIL Limited recorded net sales of Rs1.447 billion during the first quarter of 2026, compared with Rs1.209 billion in the same quarter of 2025. This represents an increase of around 19.7%, indicating stronger revenue generation during the period.
The cost of sales also increased to Rs1.001 billion, up from Rs821.6 million a year earlier. Despite the higher cost base, the company’s gross profit improved to Rs445.9 million, compared with Rs387.9 million in the corresponding quarter of 2025.
Profitability shows improvement
The company’s operating performance remained relatively stable despite higher selling, distribution and administrative expenses. Selling and distribution expenses rose to Rs294.5 million, while administrative expenses reached Rs107.3 million.
Operating profit stood at Rs56.4 million, slightly higher than Rs55.6 million recorded in the first quarter of 2025. Other income increased to Rs12.3 million from Rs8.8 million, providing additional support to the bottom line.
A notable improvement came from lower financial charges, which declined to Rs16.4 million from Rs24.0 million in the previous year’s quarter. This helped offset higher other charges during the period.
Pre-tax and net profit increase
ZIL Limited reported profit before tax of Rs15.8 million, compared with Rs18.3 million a year earlier. After taxation, however, the company posted profit after tax of Rs1.34 million, up from Rs1.12 million in the same period last year.
The increase translates into approximately 19.2% year-on-year growth in net profit.
Earnings per share also improved, rising to Rs0.22 from Rs0.18 in the corresponding quarter of 2025.
Cash position improves
The company’s balance sheet showed cash and bank balances of Rs197.55 million as of March 31, 2026, compared with Rs178 million at the end of December 2025.
According to the cash flow statement, net cash flows from operating activities remained negative at Rs66.8 million, although this was an improvement over the negative Rs154.1 million recorded in the same period last year.
Investing activities generated net cash inflows of Rs58.8 million, while financing activities contributed Rs27.6 million. As a result, cash and cash equivalents increased by Rs19.55 million during the quarter.
No dividend or corporate action announced
For the quarter ended March 31, 2026, ZIL Limited’s Board recommended no cash dividend, bonus shares or right shares. The company also reported no other entitlement, corporate action or price-sensitive information alongside the quarterly results.
Overall, ZIL Limited’s first-quarter performance reflects a stronger top line and modest improvement in net earnings. The nearly 20% growth in sales, higher gross profit, lower financial charges and improved cash position provide positive elements in the company’s latest financial picture, although operating expenses and taxation continue to influence overall profitability.
