Karachi: Amreli Steels Limited, in its financial report for the first quarter ended September 30, 2026, has demonstrated a noteworthy recovery in its financial performance amidst a challenging economic and geopolitical landscape.
The company reported net sales of Rs. 10,445 million, a substantial increase compared to Rs. 2,792 million during the same quarter last year, as released on November 2, 2026. Gross profit rose significantly to Rs. 983 million from a mere Rs. 18 million in the previous year, reflecting improved operational efficiency and better absorption of fixed production costs. The company's capacity utilization notably increased from 14% in the first quarter of FY2026 to 47% in the current quarter, contributing to enhanced gross margins.
Operating profit turned positive at Rs. 530 million, recovering from an operating loss of Rs. 216 million in the previous year. Despite these improvements, the company recorded a loss before tax of Rs. 188 million. However, deferred tax adjustments helped narrow the loss after tax to Rs. 60 million, translating to a minimal basic and diluted loss per share of Rs. 0.18, a significant improvement from a loss per share of Rs. 2.66 last year.
According to information available from the Pakistan Stock Exchange (PSX), Amreli Steels Limited operates within the designated market category, which remains a pivotal aspect of its financial reporting and operational strategy.
The financial recovery comes as the company navigates a demanding macroeconomic environment characterized by geopolitical tensions, including ongoing Middle East conflicts and developments between the US and Iran. These factors have contributed to rising global energy costs, with crude oil prices soaring above USD 100 per barrel. In response, the State Bank of Pakistan raised its policy rate by 50 basis points to 12% to address inflationary pressures.
Domestically, the construction and public infrastructure sectors have shown signs of improvement, offering potential for increased demand for long steel products. However, the full realization of these opportunities depends on government resource availability, effective project execution, and accessible financing.
Amreli Steels remains committed to improving its operational efficiencies, particularly at its Dhabeji facility, managing cash flows, and securing the normalization of working capital credit lines. The company aims to advocate for fair energy tariffs and policies that support documented domestic steel manufacturers, in collaboration with the Pakistan Association of Large Steel Producers.
Looking ahead, the company plans to focus on strengthening its financial position, optimizing resources, and reinforcing its market position. The ongoing financial year is expected to be pivotal for the company's recovery, with an emphasis on improving capacity utilization, reducing costs, and enhancing profitability.