April 27, 2026 (MLN):  Nimir Industrial Chemicals Limited (PSX: NICL) reported a largely stable  net profit for the nine months ended March 31, 2026, recording Rs1.339bn, practically unchanged from the Rs1.34bn posted in the corresponding period last year.

Reflecting this flat bottom line, the company's earnings per share (EPS) edged down very slightly to Rs12.11 from Rs12.14 in 9MFY25.

The company also declared dividend at Rs1 per share.

The stability in final earnings masked significant underlying volatility. NICL demonstrated solid top-line growth, with gross revenue from contracts with customers rising by 7% to Rs41.05bn.

After accounting for a 7% increase in sales tax and trade discounts, net revenue secured a 7% expansion, reaching Rs34.91bn compared to Rs32.58bn last year.

However, inflationary pressures caused the cost of sales to outpace revenue growth, rising 9% to Rs29.83bn. This margin compression left the gross profit almost entirely flat, edging down by 0.4% to Rs5.07bn.

At the operational level, overheads were mixed. The company successfully reduced its distribution costs by 10% to Rs405.81m, but administrative expenses climbed by 15% to Rs579.31m.

With gross margins squeezed and administrative costs rising, the operating profit recorded a minor 1% dip, settling at Rs4.09bn.

The true positive catalyst for NICL occurred below the operating line. The company managed to slash its finance costs by a substantial 23%, dropping them to Rs1.45bn from a heavy Rs1.89bn in the previous year.

Additionally, other expenses fell by 12% to Rs198.18m, while other income surged by 33% to Rs188.77m.

Driven almost entirely by the massive reduction in debt-servicing costs and lower statutory levies (down 43%), the profit before income tax surged by an impressive 23% to Rs2.60bn, compared to Rs2.12bn in 9MFY25.

However, the entirety of this pre-tax growth was completely wiped out by a severe spike in taxation.

The company's total tax expense skyrocketed by 62% to Rs1.26bn.

This hike was driven by a heavier current period tax burden (up 42% to Rs948.25m) and a new prior-year super tax charge of Rs176.01m.

This heavy fiscal drag absorbed all the financial cost savings, pulling the final net profit down to a flat Rs1.34bn.

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