Karachi: Archroma Pakistan Limited (ARPL) announced today in a corporate briefing that its earnings surged by 47% year-over-year to Rs1.3 billion for the nine months ending in September 2026. The increase, which translates to an earnings per share of Rs38.86, was driven by market share gains in the textile and packaging sectors.
According to JS Global, ARPL's topline rose to Rs22.46 billion, marking a 4% year-over-year increase. The company attributed the growth to enhanced market share in its core segments, supported by cost savings from Super Systems and a greater reliance on renewable energy. Gross margins improved to 27% from 24% in the previous year, as the company recovers from the challenges posed by political instability and competitive pressures from Chinese imports.
The management highlighted Super Systems as a significant opportunity for market share expansion over the next few years, particularly targeting cost-sensitive sectors like paints and paper. Projected sales growth is expected to be between 5-7%, with a focus on specialty products and dyes. Textiles continue to dominate ARPL's portfolio, comprising approximately 90%, with significant growth potential noted in denim and activewear segments.
The company has observed a shift in the competitive landscape, as global buyers diversify their supply chains, which management views as a structural opportunity for Pakistan’s textile exports. Despite challenges with raw material prices and supply chain costs, ARPL has maintained strong market share growth locally, aided by increased customer awareness and adoption by local brands.
Finance costs saw a notable decrease to Rs252 million, a 39% drop from the previous year. This reduction was facilitated by lower inventory needs and improved working-capital management. The company remains committed to its high dividend payout policy, supported by improvements in net working capital and interest-free trade payables.
Renewable energy now powers a significant portion of ARPL's operations, with management considering further investments as grid electricity costs decrease.