KARACHI: IPAK Group has reported a more than sevenfold increase in consolidated profit after tax to PKR 4.95 billion for the year ended June 30, 2026, up from PKR 664 million in FY2025, according to financial results announced by the company on Thursday.
Earnings per share rose to PKR 6.73 from PKR 1.64, while consolidated sales grew 23% to PKR 42.17 billion. Exports reached approximately USD 37 million during the year.
The Board of Directors has recommended a cash dividend of PKR 2.00 per share for FY2026, more than three times the PKR 0.60 per share paid for the previous year.
The company said higher sales translated into significant margin expansion across its integrated BOPP, BOPET and CPP films platform. These plastic films are widely used in flexible packaging for food, consumer goods and industrial products.
Gross profit increased 88% to PKR 9.39 billion, lifting gross margin to 22.3% from 14.5% in FY2025. Operating profit rose to PKR 8.14 billion, with operating margin improving to 19.3% from 11.1%.
According to the company’s statement, the improvement reflected better operating leverage, a stronger product mix and efficiencies across the Group.
Exports continued to play an important role in the Group’s performance. Export revenue rose approximately 30% to PKR 10.4 billion, equivalent to around USD 37 million.
Exports accounted for approximately 25% of consolidated sales, compared with 23% in the previous year. The company said it continued to expand its presence in international markets while sharpening its focus on specialised, value-added packaging films that offer greater product differentiation and stronger margin potential.
On a standalone basis, IPAK’s profitability also strengthened significantly. Gross profit increased to PKR 3.08 billion, while profit after tax rose approximately 55% to PKR 1.32 billion. Standalone EPS stood at PKR 1.79, compared with PKR 1.16 last year.
The company attributed the standalone improvement to the strategic allocation of capacity towards comparatively higher-margin domestic business and an improved product mix.
The gap between standalone profit of PKR 1.32 billion and consolidated profit of PKR 4.95 billion suggests that a substantial share of the Group’s earnings came from entities beyond the parent company.
The recommended dividend of PKR 2.00 represents roughly 30% of consolidated EPS, indicating that the Group is returning a portion of its gains to shareholders while retaining the bulk of earnings.
The company described the FY2026 results as a significant improvement in the Group’s earnings profile, as its expanded and integrated manufacturing platform converts revenue growth into stronger operating profitability.
Despite the strong year, management struck a measured tone on the months ahead. It said the near-term business environment remains challenging amid geopolitical uncertainty and potential disruptions to global trade and supply chains.
The Group said it would continue to focus on operational efficiency, innovation, value-added products and international market development to strengthen its competitive position and support sustainable growth.
The results mark a sharp reversal from FY2025’s modest earnings. Whether the Group can hold on to its wider margins will depend in part on how global trade conditions evolve in the year ahead.
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