Lahore: Nishat Chunian Ltd. has reported a significant increase in its profitability for the fourth quarter of the fiscal year 2026. The company announced earnings of PkR457 million, or PkR1.9 per share, a substantial rise from PkR43 million, or PkR0.2 per share, during the same period last year. This represents an 11-fold year-over-year increase in earnings. The results, however, fell short of expectations, likely due to the absence of remeasurement gains from the SIDC.

According to AKD Securities Limited, the company's revenue surged by 21% year-over-year, reaching PkR21.9 billion in the fourth quarter of FY26 compared to PkR18.0 billion in the same period last year. This growth is attributed to higher export volumes, with exports increasing by 29% year-over-year to US$31 million from US$24 million in the same quarter of the previous fiscal year.

Gross margins for the company expanded to 12.6% from 10.3% in the same period last year, driven primarily by higher volumetric sales and increased prices. Nishat Chunian Ltd. has also declared a final cash payout of PkR3.0 per share, exceeding expectations of PkR1.0 per share, resulting in a full-year dividend of PkR4.0 per share.

AKD Securities Limited maintains a 'BUY' stance on Nishat Chunian Ltd., with a target price of PkR84 per share by December 2026. This outlook is supported by an anticipated improvement in exports, easing input prices that support margins, and reduced finance costs amid declining interest rates.