Ittehad Chemicals Limited Reports Strong Financial Growth Amid Economic Stabilization

Karachi: Ittehad Chemicals Limited has reported a solid financial performance for the fiscal year ending June 30, 2026, as detailed in its Annual Report released on October 6, 2026. The company has demonstrated resilience in a volatile economic environment, benefiting from a robust balance sheet and a comprehensive product portfolio.

The Pakistani economy is undergoing a transition from acute crisis intervention to defensive stabilization, with key indicators showing improvement. Real GDP growth is projected at up to 4.5% for the upcoming fiscal year, contingent on meeting structural benchmarks under the active IMF program, among other factors. Despite fiscal constraints and external risks, the company has managed to sustain growth.

Ittehad Chemicals Limited posted net sales of Rupees 34.31 billion, a significant increase from the previous year's Rupees 27.86 billion. The gross profit rose to Rupees 5.29 billion from Rupees 4.99 billion the prior year. However, the gross profit margin contracted to 15% from 18% due to increased supply costs and raw material prices. Net profit after tax increased to Rupees 1.56 billion, with earnings per share reaching Rupees 15.58, up from Rupees 12.98.

According to information available from the Pakistan Stock Exchange (PSX), the company's financial performance is noteworthy, reflecting its ability to navigate economic challenges and maintain stakeholder value. The company's equity position and capital structure metrics have strengthened, with future gains anticipated from new projects such as a biomass power plant and a caustic soda flaker unit.

The Board of Directors has proposed a final cash dividend of Rs. 3 per share, or 30%, in addition to an interim cash dividend of Rs. 1 per share, or 10%, for the fiscal year ending June 30, 2026. This proposal awaits approval at the Annual General Meeting scheduled for October 28, 2026.