Pakistan-based Mughal Iron & Steel Industries Limited (Mughal Steel) reported improved profitability for the nine months ended March 31, 2026, supported by stronger margins and lower finance costs.
Profit after tax rose to PKR 2.12 bln (USD 7.61 mln), compared to PKR 453 mln in the same period last year.
Net sales stood at PKR 60.11 bln (USD 215.7 mln), down from PKR 66.17 bln in the corresponding period, with the decline mainly attributed to lower average selling prices and reduced export volumes.
The ferrous segment recorded higher volumes, supported by a strategic shift toward increasing local exposure, while non-ferrous volumes declined due to reduced exposure amid US-China tariff-related uncertainties.
Finance costs declined to PKR 2.75 bln (USD 9.9 mln), down around 41pct YoY, providing significant support to bottom-line growth.
The company also reported increased capital expenditure, including investments in a bar re-rolling mill and solar power initiatives, while higher trade receivables reflected stronger local sales.
Looking ahead, the company expects modest improvement in economic conditions, supported by easing inflation and continued engagement with international financial institutions. However, geopolitical tensions, energy price volatility and currency pressures may continue to impact costs and margins. The commissioning of a hybrid power plant and bar re-rolling mill is expected to support operational efficiency and future growth.
With an annual production capacity of around 1 mln tons, Mughal Steel produces billets, rebar and structural steel products, along with copper ingots primarily exported to China. The company’s sole investment is in Mughal Energy Limited, which is nearing completion of a 36.5 MW hybrid captive power plant to support its operations.
1 USD / 278.7 PKR