IPAK Revenue Grows 9.2% To Rs11.13B, Quarterly Net Profit Holds Flat At Rs705M
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✧ GENERATE BRIEFING
International Packaging Films Limited (PSX: IPAK) announced its consolidated financial results for the first quarter ended September 30, 2026. While top-line revenue expanded by 9.2% year-on-year to Rs11.13 billion (driven by a 44% surge in export sales to $12.68 million), bottom-line profit after tax remained virtually flat at Rs704.75 million (compared to Rs704.27 million in Q1 2025).Key financial highlights and operational metrics include:Margin Compression: Cost of sales outpaced revenue growth, rising 12.7% to Rs9.51 billion and pulling consolidated gross profit down by 7.7% to Rs1.62 billion.Operating Performance: Operating profit fell 8.6% to Rs1.31 billion, impacted by higher input costs and a 40.1% decline in other income to Rs80.73 million.Debt & Tax Cushion: A 15.7% drop in finance costs (to Rs424.94 million) along with a 19.9% lower tax provision helped buffer net profits against operating margin slippage.
International Packaging Films Limited (IPAK) reported a 9.2% year-on-year increase in consolidated revenue to Rs11.13 billion for the first quarter ended September 30, 2026, while profit after tax remained almost unchanged at Rs704.75 million.
The company recorded consolidated profit after tax of Rs704.27 million in the corresponding quarter last year. Earnings per share (EPS) eased to Rs1.01 from a restated Rs1.08, according to its financial filings submitted to the Pakistan Stock Exchange (PSX).
Financial Performance Breakdown
Despite solid top-line growth, consolidated gross profit contracted by 7.7% to Rs1.62 billion from Rs1.75 billion a year earlier, reflecting mounting cost pressures across raw material and manufacturing overheads. Cost of sales expanded 12.7% to Rs9.51 billion, outpacing top-line revenue gains.
| Consolidated Financial Metric (PKR Million) | Q1 FY2026 (Sep 30, 2025) | Q1 FY2027 (Sep 30, 2026) | Year-on-Year (%) |
| Turnover / Revenue | Rs10,190.75 | Rs11,131.65 | +9.2% |
| Cost of Sales | Rs8,437.53 | Rs9,513.00 | +12.7% |
| Gross Profit | Rs1,753.22 | Rs1,618.65 | -7.7% |
| Operating Profit | Rs1,429.92 | Rs1,307.10 | -8.6% |
| Finance Costs | Rs504.26 | Rs424.94 | -15.7% |
| Profit After Taxation (PAT) | Rs704.27 | Rs704.75 | +0.1% |
| Earnings Per Share (PKR) | Rs1.08 | Rs1.01 | -6.5% |
Lower Finance Costs and Tax Adjustments Buffer Earnings
Lower debt servicing expenses provided crucial support to net earnings during the quarter. Finance costs fell 15.7% to Rs424.94 million from Rs504.26 million in the same period last year, driven by lower interest rates and debt management.
Additionally, a 19.9% reduction in effective income tax charges offset the decline in profit before tax (PBT fell 4.7% to Rs882.16 million), keeping final net profit virtually unchanged.
Strong Export Expansion
Export revenues provided a significant tailwind, surging approximately 44% year-on-year to Rs3.52 billion (generating ~$12.68 million) compared to Rs2.44 billion in the prior-year period.
On a standalone basis, International Packaging Films posted revenue of Rs3.42 billion and a net profit after tax of approximately Rs211 million for the quarter.
Corporate Strategy and Middle East Supply Risks
Following major capacity additions that propelled growth in previous quarters, management noted that strategic priorities are shifting toward optimizing manufacturing output, refining product mix, and expanding sales of higher-margin, value-added packaging films.
Looking ahead, the company flagged potential supply chain bottlenecks stemming from ongoing Middle East geopolitical conflicts, highlighting volatility surrounding polymer raw material availability, ocean freight shipping rates, and delivery lead times. Management confirmed that maintaining operational resilience and securing raw material supply continuity remain paramount.
