KARACHI:Â Thal Limited (PSX: THALL) announced a profit after tax of Rs. 2.08 billion for the first quarter ended September 30, 2025, marking an 11% decrease from the Rs. 2.34 billion recorded in the same period last year. The decline underscores the company’s heavy reliance on its investment portfolio, which saw lower returns, overshadowing a robust performance in its own operations.
Earnings per share (EPS) for the quarter stood at Rs. 22.76, down from Rs. 25.21. This contraction occurred despite a stellar 60% year-on-year jump in net revenue, which climbed to Rs. 10.42 billion. The company’s core business showed significant improvement, with gross profit soaring 87% to Rs. 891.5 million and the gross margin expanding to 8.6% from 7.3%, indicating stronger pricing power and operational efficiency.
However, the positive momentum from core operations was offset by a substantial 25% decline in other income and, most critically, an 11% drop in the share of net profit from associates, which fell to Rs. 1.87 billion. This segment remains a major contributor to Thal’s profitability, and its decline was the primary driver of the overall profit reduction. A 37% decrease in finance costs provided some relief to the bottom line.
Consequently, the company’s net profit margin compressed to 20.0% from 35.9% in the prior year. The results highlight the dual nature of Thal’s earnings, where strong internal growth can be tempered by the performance of its strategic investments, defining its financial trajectory for the quarter.
