Karachi: In a significant financial turnaround, Mughal Iron and Steel Industries Ltd. (MUGHAL) is expected to report a substantial increase in earnings for the first quarter of fiscal year 2026, according to a preview by JS Global. The company is anticipated to achieve earnings of Rs455 million, resulting in an earnings per share (EPS) of Rs1.4. This marks a notable improvement from the Rs7 million recorded in the same quarter last year, primarily driven by a considerable reduction in finance costs due to lower interest rates and decreased borrowing.

Despite the positive earnings forecast, Mughal Iron and Steel is not expected to announce any cash dividend for this period. The company's financial strategy seems focused on capitalizing on the current favorable interest rate environment to bolster its balance sheet.

Conversely, Amreli Steels Ltd. (ASTL) is likely to continue facing financial challenges, with its earnings remaining in the negative territory. The company is projected to report a loss per share (LPS) of Rs2.4 for the first quarter, slightly improving from a loss of Rs3.3 per share in the corresponding period of the previous year. The persistent losses are attributed to weak capacity utilization, compounded by working capital constraints that have hindered the company's operational efficiency.

The contrasting financial outlooks for these two steel companies highlight the varied impacts of economic conditions and internal management strategies on their performance. As the fiscal year progresses, stakeholders will be closely monitoring how these entities navigate the evolving market landscape.