April 29, 2026 (MLN):  Highnoon Laboratories Limited (PSX: HINOON) reported a solid 10% increase in its consolidated net profit for the first quarter ended March 31, 2026, recording Rs1.05bn compared to Rs954.56m in the corresponding period last year.

Reflecting this healthy bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs19.78 from Rs18.02 in Q1 2025.

The primary driver of this profit expansion was steady top-line growth coupled with reduced direct costs.

HINOON’s net revenue from contracts with customers posted a 7% year-on-year increase, rising to Rs7.52bn from Rs7.03bn.

Notably, the cost of revenue actually declined by 6%, settling at Rs3.14bn.

This highly favorable cost dynamic allowed the gross profit to secure a robust 19% expansion, reaching Rs4.38bn up from Rs3.68bn in the prior year.

On the operational front, the company kept overhead growth moderate and proportionate.

Distribution, selling, and promotional expenses rose by 5% to Rs1.97bn, while administrative and general expenses also increased by 5% to Rs366.65m.

Although other operating expenses spiked by 35% to Rs162.33m, total operating expenses grew by just 7%.

The sheer strength of the gross margin expansion easily outpaced these operational costs, driving the profit from operations up by a formidable 40% to Rs1.88bn.

Below the operating line, HINOON experienced relatively stable financial dynamics. The company successfully trimmed its finance cost by 29%, dropping it to Rs19.82m from Rs27.76m. This offset a slight 10% dip in other income, which fell to Rs87.81m.

Boosted by the strong operational performance and lower finance costs, the profit before income tax registered an impressive 39% increase, reaching Rs1.95bn.

However, a massive 99% surge in taxation expense, which nearly doubled to Rs900.58m, consumed a significant chunk of these pre-tax gains.

Despite this heavy tax burden, Highnoon Laboratories securely closed the quarter with a 10% leap in its final net profit, settling at Rs1.05bn.