Mughal Steel Records 158% Higher FY26 Profit

Mughal Iron and Steel Industries Limited announced an impressive 158% increase in fiscal year 2026 profit, reaching Rs. 2.487 billion, compared to Rs. 966 million in the prior year. Earnings per share also surged to Rs. 7.41 from Rs. 2.88, and the company reinstated a cash dividend of Rs. 2 per share after a two-year hiatus. However, the fourth quarter saw a 29% YoY decline in earnings per share to Rs.

1.08. Despite a 13% YoY drop in annual revenue to Rs. 77.958 billion, costs dropped 15% to Rs. 69.302 billion, leading to a gross margin improvement from 9% to 11%. This improvement was driven by a 5% YoY decrease in electricity tariffs and stable capacity utilization. Other income jumped 2.7 times YoY to Rs. 549 million, mainly from markup income on a loan extended to a subsidiary.

Finance costs fell 33% to Rs. 3.821 billion, benefiting from lower borrowing costs. The company's debt increased 36% YoY and 16% QoQ to Rs. 38.066 billion, but cash reserves rose to Rs. 7.692 billion. The effective tax rate also rose to 31% in FY26 from 29% the previous year.