Nishat Chunian Ltd. (NCL) announced its 2QFY26 results, reporting a loss of PkR22mn (LPS: PkR0.1) compared to profitability of PkR231mn (EPS: PkR1.0) in SPLY. The result was against our expectations due to higher-than-anticipated finance costs and taxation. Along with the result, the company announced a half-yearly dividend of PkR1.0/sh.

Revenue declined by 2%YoY to PkR20.3bn in 2QFY26 compared to PkR20.7bn in SPLY, possibly due to a decline in domestic spinning sales. However, export growth is expected to partially offset the said decline.

Gross margins slightly improved to 11.8% vs. 11.5% in SPLY, mainly due to easing cotton and energy costs.

Operating expenses increased by 2% YoY to PkR631mn, led by higher admin expenses.

Full Report
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Courtesy – AKD Research