Pharma Sector Reports Rs. 11.6 Billion Q1 Profit

Pakistan's listed pharmaceutical sector recorded an 11 percent year-on-year growth in profit after tax to Rs.

Key points

• The sector's effective tax rate stood at 37.9 percent in 1QFY27, compared with 39.4 percent in 1QFY26 and 50.4 percent in 4QFY26.
• Lahore's Smog Drops 27% This October, but Weather Did Most of the Work: Report.
• While its profit after tax rose 28 percent to Rs, 16.6 billion, up 17 percent year-on-year.
• Despite the earnings expansion, the sector's market capitalization declined 24 percent year-on-year and 13 percent quarter-on-quarter to Rs.
• The sector's finance costs rose 22 percent year-on-year and 44 percent quarter-on-quarter to Rs.

Pakistan's listed pharmaceutical sector recorded an 11 percent year-on-year growth in profit after tax to Rs. 11.6 billion in the first quarter of FY2027, backed by higher sales and improved gross margins, according to a report by Topline Securities.

Net sales rose 5 percent year-on-year and 11 percent quarter-on-quarter to Rs. 98.8 billion. Gross profit rose 10 percent year-on-year to Rs. While the sector's gross margin improved to 43.7 percent from 41.9 percent in 1QFY26 and 42.8 percent in 4QFY26, 43.2 billion.

Despite the earnings expansion, the sector's market capitalization declined 24 percent year-on-year and 13 percent quarter-on-quarter to Rs. 505.2 billion as of October 30, 2026. Doctors Throughout Pakistan Go on Strike as Protest Against FBR. Higher Sales and Margins Backing Sector Earnings.

Topline Securities attributed the growth in net sales mainly to a more favorable product mix and higher costs and volumes. After a higher sales base in 1QFY26 that included those exports, the expansion came despite exports to Afghanistan remaining suspended since October 2025.

Abbott Laboratories Pakistan contributed 21 percent of sector sales during the quarter, followed by GlaxoSmithKline Pakistan at 17 percent, The Searle Firm at 11 percent and Haleon Pakistan at 10 percent.

Gross margins improved as sales volumes and rates climbed. Among the firms covered, AGP, Searle and Highnoon Laboratories noted the highest gross margins at 64.6 percent, 57.2 percent and 57.1 percent, respectively. Pharmacists Holding Multiple Licenses to Face Legal Action.

Selling and distribution expenses rose 6 percent year-on-year and 5 percent quarter-on-quarter to Rs. 18.6 billion. Administrative expenses rose 14 percent year-on-year and 5 percent quarter-on-quarter to Rs. 3.6 billion. Finance Costs Rise as Other Income Declines.

Notably, the sector's finance costs rose 22 percent year-on-year and 44 percent quarter-on-quarter to Rs. 1.2 billion in 1QFY27. Topline Securities remarked higher finance costs at GlaxoSmithKline Pakistan, AGP and Haleon Pakistan contributed to the rise.

Other income declined 15 percent year-on-year and 69 percent quarter-on-quarter to Rs. 802 million, mainly due to lower contributions from Hoechst Pakistan, GlaxoSmithKline Pakistan and The Searle Firm.

In practice, the sector's effective tax rate stood at 37.9 percent in 1QFY27, compared with 39.4 percent in 1QFY26 and 50.4 percent in 4QFY26. The total tax charge reached Rs. 7.1 billion during the quarter.

GlaxoSmithKline Pakistan recorded net sales of Rs. While its profit after tax rose 28 percent to Rs, 16.6 billion, up 17 percent year-on-year. 2.6 billion. Abbott Laboratories Pakistan posted sales of Rs. 20.6 billion, up 4 percent, and profit after tax rose 40 percent to Rs. 2.5 billion.

For context, the Searle Firm noted sales expansion of 15 percent to Rs. While profit after tax rose 31 percent to Rs, 11.2 billion. 1.2 billion. Haleon Pakistan's sales declined 5 percent to Rs. 10 billion, and its profit after tax fell 5 percent to Rs. 1.5 billion.

Highnoon Laboratories recorded a 5 percent growth in sales to Rs. While its profit after tax declined 2 percent to Rs, 7.5 billion. 931 million. AGP's sales fell 15 percent to Rs. While profit after tax fell 12 percent to Rs, 6.4 billion. 1 billion. Stay Connected with ProPakistani.

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For now, pharma Sector Reports Rs. 11.6 Billion Q1 Profit remains the part of the story worth watching, and further updates are likely as more details are confirmed.