Mughal Iron and Steel Industries Limited reported a 2.6 times year-on-year (YoY) increase in profit to Rs. 2.487 billion for fiscal year 2026, compared with Rs. 966 million in the previous year, according to a result review by Arif Habib Limited. Earnings per share rose to Rs. 7.41 from Rs. 2.88.
The company also announced a cash dividend of Rs. 2 per share after a two year gap. The dividend represents a payout ratio of 27 percent. However, earnings per share for the fourth quarter of FY26 declined 29 percent YoY to Rs. 1.08.
Mughal’s annual revenue fell 13 percent YoY to Rs. 77.958 billion, while the cost of sales declined 15 percent to Rs. 69.302 billion. The reduction in costs helped the company’s gross margin improve to 11 percent from 9 percent a year earlier.
The improvement in gross margins was supported by a 5 percent YoY decline in electricity tariffs and stable capacity utilization. This came despite a 3 percent increase in international scrap prices and a 1 percent decline in rebar prices, which reduced the scrap to rebar spread by 15 percent.
Other income increased 2.7 times YoY to Rs. 549 million, mainly due to markup income on a loan extended to a subsidiary at 3 month KIBOR plus 2.25 percent.
Finance costs declined 33 percent to Rs. 3.821 billion from Rs. 5.723 billion in FY25, primarily because of lower borrowing costs during the year.
The company’s total debt rose 36 percent YoY and 16 percent quarter over quarter to Rs. 38.066 billion in the fourth quarter of FY26. Cash and cash equivalents increased to Rs. 7.692 billion from Rs. 3.331 billion in FY25 and Rs. 3.623 billion in the third quarter of FY26, partly offsetting the impact of the higher debt burden.
Mughal’s effective tax rate increased to 31 percent in FY26 from 29 percent in the previous year.
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