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IPAK Group posts seven‑fold profit jump in FY2026

Consolidated profit after tax surged to Rs4.95 billion, driven by higher sales, margin expansion and stronger export performance.

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IPAK Group posts seven‑fold profit jump in FY2026 — Economy | Shariah PSX

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Positive · Buy bias

IPAK’s profit surge and higher dividend boost its attractiveness; Buy bias for IPAK ticker.

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Desk call: Buy bias · Positively affected

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Sectors: Economy Positive · Buy bias. PSX tickers: IPAK. IPAK’s profit surge and higher dividend boost its attractiveness; Buy bias for IPAK ticker.

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IPAK Group FY2026 financial highlights

The IPAK Group announced that its consolidated profit after tax (PAT) climbed more than seven times year‑on‑year to Rs4.95 billion for the fiscal year ending June 2026, up from Rs664 million in FY2025. Earnings per share (EPS) rose to Rs6.73 from Rs1.64.

Sales and export growth

Consolidated sales increased 23 percent to Rs42.17 billion. Export revenues grew about 30 percent to Rs10.4 billion (≈US$37 million), representing roughly 25 percent of total sales, up from 23 percent a year earlier.

Margin improvement

Gross profit jumped 88 percent to Rs9.39 billion, lifting the gross margin to 22.3 percent from 14.5 percent. Operating profit reached Rs8.14 billion, with the operating margin expanding to 19.3 percent versus 11.1 percent previously, reflecting better operating leverage, a higher‑margin product mix and efficiency gains.

Dividend and standalone results

The Board recommended a cash dividend of Rs2 per share for FY2026, compared with Rs0.60 per share in FY2025. On a standalone basis, gross profit rose to Rs3.08 billion and PAT to Rs1.32 billion, a 55 percent increase, while standalone EPS improved to Rs1.79 from Rs1.16.

Business outlook

IPAK operates an integrated platform producing BOPP, BOPET and CPP films and continued to expand its international market presence in FY2026, focusing on specialised, value‑added packaging films. Management cautioned that geopolitical uncertainty and potential supply‑chain disruptions keep the near‑term environment challenging, but reaffirmed its strategy of operational efficiency, innovation and market development.

Shariah and market relevance

The strong earnings surge and higher dividend payout are likely to attract Shariah‑compliant investors seeking growth and income from the packaging sector, positioning IPAK favourably on the PSX.