Karachi: Biafo Industries Limited, in its Corporate Briefing Session for 2026, presented a detailed overview of its financial performance for the fiscal year 2025-26, emphasizing a stable yet challenging financial landscape.

On November 13, 2026, Biafo Industries released its annual report, highlighting a 10.0% increase in net revenue, which reached Rs 3,192.8 million compared to Rs 2,902.1 million in the previous fiscal year. The company's gross profit for the year stood at Rs 1,158.5 million, marking an 11.7% rise, with a gross margin of 36.3%.

The profit after tax showed a negligible change, reported at Rs 388.9 million, slightly down from Rs 389.5 million in the prior year. Similarly, earnings per share were Rs 8.39, a minor move from last year's Rs 8.40. The company declared a cash dividend of Rs 5.00 per share, split into interim and final dividends of 25% each.

According to information available from the Pakistan Stock Exchange (PSX), Biafo Industries' operational cash flow was Rs 735.5 million, with capital expenditures amounting to Rs 69 million. The cost structure saw the cost of sales decrease to 63.7% from 64.3% of net revenue, despite increased costs of imported raw materials. Distribution expenses rose to 4.6% from 3.0%, while administrative expenses edged up to 8.6% from 8.4%.

The financial position as of June 30, 2026, showed non-current assets at Rs 2,270.6 million and current assets at Rs 1,645.7 million. Non-current liabilities decreased to Rs 77.1 million, and current liabilities were significantly reduced to Rs 499.9 million from Rs 1,095.1 million, improving the company's current ratio to 3.29x from 1.96x the previous year. Short-term borrowings decreased by a very large or significant move of 73% to Rs 132.2 million, and the long-term loan was fully repaid.

Biafo Industries' net profit margin slightly declined to 12.2% from 13.4%, reflecting increased distribution costs and a one-time impairment on trade debts. The effective tax rate fell to 6.6% from 9.4%, partially offsetting the pressure on net profits.

In conclusion, while Biafo Industries navigated through cost pressures and capital investments, it maintained a strong financial position with a focus on export growth and operational efficiency.