October 29, 2025 (MLN): International Industries Limited (PSX: INIL) reported a profit after tax of Rs608.9m for the quarter ended September 30, 2025, a sharp reversal from a loss of Rs49.9m in the corresponding quarter last year.

Earnings/(loss) per share stood at Rs2.56 compared to a loss per share of Rs0.97 in 1QFY25.

Revenue from contracts with customers surged 48% year-on-year to Rs27.88bn from Rs18.88bn, demonstrating exceptionally strong demand during the quarter. Cost of sales rose 42% to Rs24.49bn from Rs17.29bn.

Gross profit more than doubled, increasing 2.1 times to Rs3.39bn against Rs1.59bn in 1QFY25, with the gross margin improving significantly to 12.2% from 8.4% in the prior year quarter, indicating enhanced operational efficiency and better pricing power.

Selling and distribution expenses increased 62% to Rs1.3bn from Rs798.3m, while administrative expenses rose 21% to Rs272.5m.

The company recorded an operating profit of Rs1.82bn, up 3.2 times from Rs567.7m in 1QFY25.

Finance costs declined 22% to Rs418.1m from Rs534.5m in the previous year, providing significant relief to the bottom line.

Other operating charges increased 3.3 times to Rs201.1m from Rs61.6m. Other income (net) declined 96% to Rs11.7m from Rs259.7m last year.

Profit before income tax surged 4.4 times to Rs1.21bn from Rs223.4m in 1QFY25.

Income tax expense increased 2.2 times to Rs600.8m from Rs273.4m in the prior period.

The company concluded 1QFY26 with a net profit of Rs608.9m, delivering a net profit margin of 2.2% compared to -0.3% in 1QFY25.

The exceptional turnaround was driven by robust revenue growth of 48%, significant gross margin expansion, and improved operating leverage, marking a return to profitability despite substantially higher selling and distribution expenses and reduced other income.