Karachi: Citi Pharma Limited (CPHL) announced a significant rise in its first-quarter earnings for the fiscal year 2027, reporting a consolidated quarterly profit of Rs249 million, translating to earnings per share (EPS) of Rs1.09, marking a 22% increase compared to the same period last year. This performance exceeded industry expectations, attributed primarily to improved gross margins.

According to JS Global, the company's net sales experienced a modest increase of 4% year-over-year and 7% quarter-over-quarter, reaching Rs3.51 billion, aligning closely with predicted figures. The rise in net sales is attributed to a shifting demand in the pharmaceutical sector amid seasonal changes. Gross margins for the quarter were reported at 19.2%, surpassing the anticipated 17.2%, largely due to effective inventory management.

The report highlighted a surge in marketing expenses, which increased by 2.3 times year-over-year and 8% quarter-over-quarter, totaling Rs108 million for the quarter. Administrative expenses also rose by 10% year-over-year but saw a decline of 38% quarter-over-quarter, amounting to Rs55 million.

Other income for the quarter stood at Rs16 million, down 45% from the previous year but up 25% from the previous quarter. The financial costs were reported at Rs101 million, a decrease of 17% year-over-year and 6% quarter-over-quarter, due to reduced borrowing levels. As of September 2026, the company's total debt was Rs2.9 billion.

The effective tax rate for the quarter was 36.7%, compared to 32.6% the previous year, with a tax charge of Rs144 million. The previous quarter had seen a tax reversal of Rs85 million. JS Global maintains a hold stance on CPHL.