Nishat Chunian Ltd. (NCL) announced its 3QFY26 results, reporting a profit of PkR642mn (EPS: PkR2.7), up 33%YoY compared to PkR481mn (EPS: PkR2.0) in SPLY. The result came in higher than our expectations due to higher-than-anticipated sales and gross margins.

·        Revenue declined by 7%YoY to PkR21.7bn in 3QFY26 compared to PkR23.4bn in SPLY, possibly due to a decline in domestic spinning sales. However, export growth is expected to partially offset the said decline.

·        Gross margins improved to 13.0% vs. 10.5% in SPLY, mainly due to easing cotton prices and energy tariffs.

·        Operating expenses increased by 11%YoY to PkR626mn, on the back of higher export volumes.

Full Report
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Courtesy – AKD Research