International Steel Ltd (ISL) announced financial results earlier today, posting earnings of PkR995mn (EPS: PkR2.3) for 2QFY26, up 2.8x YoY, arriving above our expectations due to higher net revenues and share of profit from associates. Additionally, the company also announced a cash dividend of PkR2.0/sh for 1HFY26, compared to no payout in SPLY.

• Net revenue clocked in at PkR23.0bn, up 26%YoY/10%QoQ, led by healthy domestic volume growth alongside a rebound in export sales against SPLY. Notably, the imposition of a 40.47% anti-dumping duty on galvalume imports, which were previously routed into the market under the guise of HDGC, has materially increased volumes for formal players. Furthermore, the 10% GST levy on producers in the FATA/PATA regions further supported volume normalisation.
• Gross margins improved to 10.0% during the quarter from 8.1% in SPLY, primarily on the back of wider CRC-HRC spread of US$79/ton (vs. US$55/ton in SPLY).

Full Report

https://research.akdsl.com/639051366116805970.pdf

Courtesy – AKD Research