Karachi: The Searle Company Ltd (SEARL) has announced a 9% increase in its quarterly profit for the second quarter of the fiscal year 2026, meeting market expectations. The company reported an unconsolidated profit of Rs931 million, translating to earnings per share (EPS) of Rs1.58, according to its financial results released today.
According to JS Global, the company's effective tax rate stood at 58% for the quarter, influenced by a one-off tax provisioning of approximately Rs273 million related to a super tax. Over the first half of FY26, Searle recorded profits of Rs1.8 billion, a significant turnaround from a loss of Rs39 million in the same period last year.
The company's net sales saw a substantial increase, rising 39% year-on-year and 5% quarter-on-quarter to reach Rs9 billion in 2QFY26. For the first half of FY26, revenue surged to Rs17.5 billion, up 34% from the previous year. This growth is attributed primarily to increased sales and improved pricing.
Searle's gross margins improved to 56.7% in the second quarter, compared to 52.6% in the same period last year, and 55.9% in the first quarter of FY26. Distribution expenses also rose by 32% year-on-year but decreased by 6% quarter-on-quarter to Rs2.5 billion. Administrative expenses increased 8% year-on-year and 10% quarter-on-quarter to Rs456 million in the second quarter, bringing the first half total to Rs870 million, up 14% year-on-year.
Other income significantly boosted earnings, rising to Rs250 million, a 6.8-fold increase year-on-year and a 6.9-fold increase quarter-on-quarter. This was primarily driven by gains from assets sold under Ijarah arrangements. Meanwhile, finance costs decreased by 62% year-on-year and 14% quarter-on-quarter to Rs241 million due to lower borrowings, with the first half finance costs totaling Rs520 million, down 62% from the previous year.
SEARL is currently trading at a projected FY26 price-to-earnings ratio of 14.8.
The post The Searle Company Reports 9% Quarterly Profit Increase Amid Rising Sales appeared first on Pakistan Business News.