Pakistan Cables Swings to Profit in 1HFY26 With Rs213 Million Earnings
Positive for
Pakistan Cables returned to profit in the first half of FY26, posting Rs213 million against a loss a year earlier, as revenue edged up and lower financing costs helped. Earnings per share turned positive at Rs3.92.
Pakistan Cables, one of the country's established wire and cable makers, returned to profit in the first half of FY26 after a loss-making period. The company posted net profit of Rs213 million for the six months ended 31 December 2025, a turnaround from the prior year, helped by steady sales and lower financing costs as interest rates came down from their peak.
What the Pakistan Cables results showed
Pakistan Cables reported net profit of Rs213.4 million, against a net loss of Rs186.7 million in the same half a year earlier. Earnings per share turned positive at Rs3.92 from a loss per share of Rs3.43. Revenue rose 3 percent to Rs16.18 billion. Gross profit slipped slightly to Rs1.60 billion from Rs1.65 billion, so the swing to profit came less from the core margin and more from lower costs below the gross line, including reduced finance costs.
Why lower rates matter for a cable maker
Cable manufacturing is working capital heavy, since makers hold copper and aluminium inventory and extend credit to buyers. That means high interest rates bite hard through financing costs, and a fall in rates eases the burden directly. Demand is tied to construction, power and infrastructure spending. So a company like Pakistan Cables can swing between loss and profit on the combination of metal prices, financing costs and project demand, which is what makes the rate cycle so important to its bottom line.
Which stocks, and why
This is a direct, company specific result for Pakistan Cables, and the read is positive. Moving from a loss to a Rs213 million profit is a clear improvement, even if the gross margin was flat to slightly lower, because it shows the business is back in the black. It is marked at a measured level since the turnaround leaned on lower financing costs rather than a jump in core profitability.
What to watch
The signals to track are copper and aluminium prices, the interest rate that drives financing costs, and demand from construction, power and infrastructure projects. Watch whether the company can lift gross margins alongside the lower finance costs, since a recovery built on both would be more durable than one resting on cheaper debt alone.
Sources
Frequently asked questions
Did Pakistan Cables make a profit in 1HFY26?
Yes. It reported net profit of Rs213.4 million for the half year ended 31 December 2025, swinging from a net loss of Rs186.7 million a year earlier, with earnings per share of Rs3.92 against a loss per share of Rs3.43.
What helped the turnaround?
Revenue rose 3 percent to Rs16.18 billion and the company benefited from lower financing costs as interest rates eased, which helped push it back into profit even though gross profit was slightly lower.
Is the result positive for PCAL stock?
Returning to profit from a loss is a clear positive. This describes the company's results and exposure, not a forecast for its share price.
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