Pakistan State Oil net profit soars 5x on surging margins and lower finance cost

Pakistan State Oil (PSX: PSO), the country’s largest oil marketing company, reported a consolidated profit after tax of Rs11.2 billion for the quarter ended September 30, 2025, a massive increase of over 502% compared to Rs1.85 billion in the same period last year.

Key Financial Highlights (Q1 FY26):

• Earnings Per Share (EPS): Rose to Rs22.43 from Rs6.07.

• Revenue: Stood at Rs771.9 billion, down 7% from Rs827.2 billion.

• Gross Profit: Surged 36% to Rs33.73 billion.

• Profit from Operations: Jumped 145% to Rs23.04 billion.

• Profit Before Tax: Increased 285% to Rs20.43 billion.

The company’s blockbuster profitability was driven by a powerful expansion in margins, which completely offset a decline in the top line. While revenue decreased by 7% to Rs771.9 billion, the cost of products sold fell at a faster rate of 8% to Rs738.2 billion. This dynamic led to a 36% surge in gross profit to Rs33.73 billion, indicating significantly improved per-unit profitability on the products sold.

This operational strength was compounded by disciplined cost management. Operating expenses were reduced, and finance costs decreased considerably by over 38% to Rs6.94 billion, freeing up substantial earnings. The result was a more than doubling of profit from operations, which jumped 145% to Rs23.04 billion. The stellar performance underscores a highly favorable pricing environment and efficient cost control during the quarter.