Lahore: Mughal Industries announced a significant restoration of its cash payouts after a three-year suspension, despite reporting a decline in its quarterly earnings, as detailed in its latest financial results. The company posted a net profit after tax (NPAT) of PkR365 million for the fourth quarter of fiscal year 2026, marking a 29% decrease from the previous year and a 21% dip from the preceding quarter. This performance fell short of analyst expectations due to lower-than-anticipated gross revenue and margins.

According to AKD Securities Limited, while the fourth-quarter results were underwhelming, Mughal Industries reported a substantial increase in its full-year NPAT, which rose by 158% year-on-year to PkR2.49 billion from PkR966 million in fiscal year 2025. This improvement was accompanied by the announcement of a PkR2.0 cash final dividend, a noteworthy change from the absence of payouts in the same period last year.

The company's net sales decreased to PkR17.8 billion, reflecting a 23% year-on-year and 3% quarter-on-quarter decline. This drop was attributed to weaker pricing of finished products and a reduction in volumetric dispatches, influenced by elevated freight costs amid volatile diesel prices, which negatively impacted rebar offtakes. Retail rebar prices averaged PkR250,000 per ton during the quarter, a 7% decrease from the previous year.

Gross margins remained relatively stable at 9.0%, compared to 9.8% in the same period last year and 8.8% in the third quarter of fiscal year 2026. The margin between rebar and scrap averaged US$98 per ton, showing a minor 1% year-on-year decline during the period.