Mughal Iron & Steel Industries Ltd. (MUGHAL) reported FY26 results showing stronger profitability despite lower sales, according to AHL Research Ltd.

Gross sales fell to PKR 90.92bn from PKR 102.79bn, but profit rose sharply to PKR 2.49bn from PKR 0.97bn, supported by higher ferrous volumes, improved sales mix and operational efficiencies. Consolidated margins improved despite reduced exports, while net worth climbed to PKR 36.62bn.

Ferrous production increased across melting and rolling operations, while copper ingot output rose modestly. The recycling plant remained idle amid market volatility. The Board proposed a final cash dividend of PKR 2.00/share.

AHL Research noted that long-term steel demand remains resilient, driven by housing and infrastructure needs, though commodity volatility and geopolitical risks continue to weigh on non-ferrous operations.