Mughal Steel Records 158% Higher FY26 Profit

Mughal Iron and Steel Industries Limited documented a 2.6 times year over year rise in profit to Rs.

Key points

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• Mughal's effective tax rate rose to 31 percent in FY26 from 29 percent in the previous year.
• 5.723 billion in FY25, primarily since of lower borrowing costs during the year.
• The company's total debt rose 36 percent year over year and 16 percent quarter over quarter to Rs.

Mughal Iron and Steel Industries Limited documented a 2.6 times year over year rise 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.

For context, the firm additionally confirmed a cash dividend of Rs. 2 per share after a two year gap. The dividend represents a payout ratio of 27 percent. Nevertheless, earnings per share for the fourth quarter of FY26 declined 29 percent year over year to Rs. 1.08.

Mughal's annual revenue fell 13 percent year over year to Rs. While the cost of sales declined 15 percent to Rs, 77.958 billion. 69.302 billion. The reduction in costs supported the company's gross margin improve to 11 percent from 9 percent a year earlier. Banks Cut Agri-Business Loans While Farmers Obtain More.

In practice, the improvement in gross margins was backed by a 5 percent year over year decline in electricity tariffs and stable capacity utilization. This came despite a 3 percent growth in international scrap costs and a 1 percent decline in rebar rates. It reduced the scrap to rebar spread by 15 percent.

Other income rose 2.7 times year over year 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 since of lower borrowing costs during the year.

For context, the company's total debt rose 36 percent year over year and 16 percent quarter over quarter to Rs. 38.066 billion in the fourth quarter of FY26. Cash and cash equivalents rose 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 rose to 31 percent in FY26 from 29 percent in the previous year. Stay Connected with ProPakistani.

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In short, mughal Steel Records 158% Higher FY26 Profit is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.