•       The Company also announced a final cash dividend of PKR 40/share in 4QFY26, compared to PKR 13/share in 4QFY25, taking the full-year payout ratio to 44% in FY26 versus 30.5% in FY25, a notable step-up in distribution despite the softer 4QFY26.

•       FY26 net sales stood at PKR 533bn, up 12% YoY, primarily on the back of higher fuel prices, with average MS and HSD prices at PKR 316.55/litre and PKR 330.44/litre respectively, up 24% and 27% YoY.

•       4QFY26 sales came in at PKR 163.4bn, up 28% YoY and 27% QoQ, as average MS and HSD prices rose sharply to PKR 380.27/litre and PKR 396.4/litre, up 49% and 54% YoY respectively, underscoring the extent to which topline growth was price-led rather than volume-led.

•       FY26 gross profit rose 70% YoY to PKR 32.07bn, with gross margins improving to 6.0% from 4% in SPLY.

•       However, 4QFY26 gross profit fell to PKR 4.3bn, down 20% YoY and 72% QoQ, as the Company booked heavy inventory losses during the quarter. As a result, gross margin compressed sharply to 2.7% in 4QFY26, down from 11.9% in 3QFY26 and 4.3% in 4QFY25, highlighting the volatility inventory-related valuation swings can introduce to quarterly earnings, even as full-year profitability trends remain strong.

•       Other income for FY26 stood at PKR 3.1bn, up 43% YoY.

•       Taxation for FY26 came in at PKR 10.75bn, up 63% YoY, broadly tracking the growth in pre-tax profitability. On a quarterly basis, the effective tax rate stood at 36.1% in 4QFY26, down from 41.1% in 4QFY25, providing some offset to the pressure on 4Q gross margins.

Courtesy: AL Habib Capital Markets Pvt Ltd