Karachi: Burshane LPG (Pakistan) Limited has reported a substantial growth in its financial performance for the fiscal year ending June 30, 2026, according to the directors' report released on September 29, 2026. The company reported a notable increase in sales volume, net sales, and gross margins during the period under review.
The company's sales volume reached 12,919 metric tons, marking an increase of 4,655 metric tons or 56.34% compared to the previous year. This growth was attributed to timely financial support from a sister concern, enabling the company to purchase imported LPG and procure surplus LPG from local refineries and wellheads. Net sales surged to Rs. 2,841.47 million, an increase of Rs. 1,182.89 million or 71.32%, driven by higher sales volumes and elevated LPG prices during the March to June period.
Gross margins also saw a significant rise, reaching Rs. 298.244 million, which represents 10.50% of the sales value. This increase of Rs. 236.985 million compared to the previous year was mainly due to improved sales volume and enhanced margins in the first half of 2026.
The financial report highlighted changes in the company's expenses. Administrative expenses increased slightly to Rs. 81.060 million, while distribution and marketing expenses decreased by Rs. 3.283 million to Rs. 44.217 million. Financial costs also decreased by Rs. 2.659 million to Rs. 54.263 million, primarily due to the full repayment of Demand Finance by June 30, 2026. However, other income fell by Rs. 78.735 million to Rs. 88.08 million due to a reduction in the write-back of ten-year-old cylinder deposits.
Profit before revenue tax rose significantly to Rs. 187.027 million, an increase of Rs. 152.942 million from the previous year. The company's profit per share increased to Rs. 7.99, compared to Rs. 1.31 in the preceding year.
According to information available from the Pakistan Stock Exchange (PSX), Burshane LPG continues to navigate a competitive business environment marked by regulatory challenges and fragmented distribution networks. The LPG industry in Pakistan is expanding, driven by rising demand and a reliance on imports to bridge the gap created by stagnant local production. Imports currently exceed 1.5 million tons annually and are expected to increase.
Operational challenges persist as the Oil and Gas Regulatory Authority (OGRA) continues to regulate LPG prices, which creates difficulties for marketing companies dealing with high import costs. The ongoing conflict in the Gulf region has also contributed to increased LPG prices and product shortages, impacting local companies' ability to maintain consumer prices.
The company is also addressing material changes and commitments, including restructuring agreements with the National Bank of Pakistan and legal proceedings related to alleged tax evasion. Burshane LPG has settled its Demand Finance I and is working towards settling the remaining financial commitments by 2027. Legal challenges related to tax liabilities for the years 2018 and 2019 have been resolved in the company's favor, with no pending tax demands.
Looking ahead, Burshane LPG is optimistic about the future of the LPG industry in Pakistan, which is poised for growth due to the country's shift toward alternative energy sources. The company remains confident in its ability to adapt to market conditions and maintain its operational capacity and profitability.
The company's commitment to Health, Safety, Security, and Environment (HSSE) policies is evident, with no reported Lost Time Injuries during the review period. Burshane LPG continues to prioritize HSSE as a critical aspect of its business operations.