Mughal Iron and Steel Industries Limited posted a 2.6 times year-on-year increase in profit to Rs. 2.487 billion in fiscal year 2026, up from Rs. 966 million in FY25.

According to a result review by Arif Habib Limited, earnings per share increased to Rs. 7.41 from Rs. 2.88.

The company also announced a cash dividend of Rs. 2 per share, its first dividend in two years. The payout represents 27 percent of earnings.

However, fourth-quarter earnings per share fell 29 percent year-on-year to Rs. 1.08, pointing to weaker performance in the final quarter.

Mughal’s annual revenue declined 13 percent to Rs. 77.958 billion, while the cost of sales fell 15 percent to Rs. 69.302 billion. As costs declined faster than revenue, the gross margin improved to 11 percent from 9 percent.

The improvement was supported by a 5 percent decline in electricity tariffs and stable capacity utilization. This came despite a 3 percent rise in international scrap prices and a 1 percent decline in rebar prices, which narrowed the scrap-to-rebar spread by 15 percent.

Other income increased 2.7 times to Rs. 549 million, mainly due to markup earned on a loan provided to a subsidiary at 3-month KIBOR plus 2.25 percent.

Finance costs declined 33 percent to Rs. 3.821 billion from Rs. 5.723 billion, mainly due to lower borrowing costs.

Total debt increased 36 percent year-on-year and 16 percent quarter-on-quarter to Rs. 38.066 billion in the fourth quarter of FY26.

Cash and cash equivalents more than doubled to Rs. 7.692 billion from Rs. 3.331 billion in FY25 and Rs. 3.623 billion in the third quarter, partly offsetting the higher debt.

The company’s effective tax rate increased to 31 percent in FY26 from 29 percent a year earlier.