February 17, 2026 (MLN): Biafo Industries Limited (PSX: BIFO) reported a profit after tax (PAT) of Rs242.96 million for the six months ended December 31, 2025, registering a robust 84% increase compared to Rs132.05m in the corresponding period last year.

Earnings per share (EPS) rose sharply to Rs5.24 from Rs2.85, showing an 83.9% growth.

The board declared an interim cash dividend of Rs2.50 per share (25%) for the quarter ended December 31, 2025.

The company’s net revenue surged 48.1% year-on-year to Rs1.82 billion, compared to Rs1.23bn in 1HFY25, driven by higher volumetric sales and improved pricing dynamics.

Cost of sales increased 39.2% to Rs1.15bn; however, revenue growth outpaced cost escalation, resulting in a 66.5% jump in gross profit to Rs665.79m from Rs399.87m last year.

Consequently, the gross profit margin improved significantly to 36.7% from 32.6%, indicating stronger cost absorption and operational efficiency.

Other income declined 67.7% to Rs3.43m from Rs10.62m in the same period last year.

Distribution expenses rose sharply by 167.7% to Rs96.25m, reflecting expanded sales efforts and higher freight costs.

Administrative expenses increased 17.4% to Rs138.64m, while net impairment losses on financial assets climbed 111.3% to Rs18.81m.

Despite higher operating expenses, operating profit grew 67.8% to Rs415.53m compared to Rs247.58m in 1HFY25, supported by strong gross margin expansion.

Finance costs increased 55.2% to Rs35.20m; however, finance income declined 8.6% to Rs13.64m, resulting in a net finance cost of Rs21.56m up 177.8% year-on-year.

After accounting for workers’ profit participation fund (Rs19.70m) and workers’ welfare fund (Rs8.45m), profit before tax rose 64.3% to Rs365.82m from Rs222.69m last year.

Income tax expense increased 35.5% to Rs122.86m. Despite the higher tax charge, the company delivered an 84% surge in net profit to Rs242.96m.

The net profit margin improved to 13.4% from 10.8% in the corresponding period last year, reflecting stronger operational performance and improved scale efficiencies.