Karachi: Earnings for Pakistan's steel sector are forecasted to experience significant growth in fiscal year 2026, with an anticipated increase of 2.7 times year-over-year, driven by strong performance from key players MUGHAL and ISL.

According to AKD Securities Limited, the steel industry, particularly MUGHAL and ISL, is expected to see a substantial boost in profitability, with a projected bottom-line growth of 2.1 times year-over-year in the fourth quarter of fiscal year 2026. This surge is attributed to increased volumetric sales, fueled by rising demand in the automotive and white goods sectors, as well as an uptick in construction activity. The firm has issued a 'BUY' recommendation for both ISL and MUGHAL, setting target prices of PkR151 per share and PkR142 per share, respectively, for December 2026.