April 30, 2026 (MLN): Image Pakistan Limited (PSX: IMAGE) reported a 6% increase in its consolidated net profit for the nine months ended March 31, 2026, reaching Rs811.51m compared to Rs766.31m in the corresponding period last year.

Reflecting this steady bottom-line growth, the company's basic and diluted earnings per share (EPS) improved to Rs3.52 from Rs3.33 in 9MFY25.

The profit expansion was achieved despite top-line headwinds, primarily due to efficient cost management and a significantly lower tax burden.

IMAGE’s net revenue posted a minor 3% year-on-year decrease, falling to Rs3.23bn from Rs3.33bn.

However, the company successfully reduced its cost of sales at a faster pace of 8%, settling at Rs1.49bn. Because the reduction in direct production costs outpaced the revenue decline, the gross profit secured a mild 2% expansion, edging up to Rs1.73bn compared to Rs1.70bn in the prior year.

On the operational front, overheads crept up moderately. Distribution and selling expenses rose by 2% to Rs466.55m, while administrative expenses increased by 9% to Rs231.83m.

However, the company received a boost from a  surge in "other income," which jumped to Rs14.83m. Supported by the resilient gross margins and higher secondary income, the operating profit remained stable, ticking up 1% to Rs1.05bn.

Below the operating line, the company faced severe pressure from debt servicing. Finance costs skyrocketed by 3.4x, leaping to Rs165.69m from just Rs48.80m in the same period last year. Dragged down by these soaring financial charges, the profit before taxation registered an 11% decline, settling at Rs880.28m.

The ultimate saving grace for IMAGE was a massive 69% reduction in its taxation expense, which plummeted to Rs68.77m from a heavy Rs222.97m burden in 9MFY25. This highly favorable tax relief completely absorbed the pre-tax hit, allowing Image Pakistan to securely close the nine-month period with its final net profit up by 6%, standing at Rs811.51m.