IPAK Group Reports Sevenfold Profit Increase as Sales and Exports Surge

Karachi: IPAK Group’s financial performance for the first quarter of the fiscal year 2026 showcases significant growth, with a sevenfold increase in net profit and a 33% rise in consolidated sales, highlighting the company’s strong market position and operational efficiency.

The company’s consolidated sales reached PKR 10.19 billion, a 33% increase from the previous year, driven by heightened demand and increased capacity utilization in its film production lines, including BoPP, CPP, and BoPET. The gross profit saw a substantial rise of 73%, amounting to PKR 1.76 billion, while operating profit increased by 83% to PKR 1.43 billion, attributed to improved margins and effective cost management. Finance costs also decreased by 14%, thanks to better working capital management and reduced borrowing rates.

A noteworthy aspect of IPAK’s performance is the 52% increase in exports, which totaled PKR 2.427 billion and accounted for 25% of total sales. This growth in exports marks a significant rise from PKR 1.594 billion during the same period last year.

The net profit for the first quarter soared to PKR 704 million from PKR 91 million in the previous year, translating to an earnings per share (EPS) of PKR 1.14, up from PKR 0.35. This increase underscores the group’s enhanced operational leverage and financial resilience.

On a standalone basis, IPAK’s net profit rose to PKR 183 million from PKR 20 million in the first quarter of FY2025, marking a more than ninefold increase. The EPS also saw an eightfold improvement compared to the same period last year. Despite a decline in standalone sales to PKR 2.95 billion from PKR 3.43 billion, the results reflect IPAK’s successful optimization of domestic operations and product mix enhancement.

The Group Chief Executive noted the company’s leadership in capacity was evident in their financial results, emphasizing that efficiency, scale, and exports are driving sustainable earnings growth across all entities.

Looking ahead, IPAK Group is committed to expanding its export footprint, maximizing production utilization, and innovating in high-value specialty films to maintain its status as a leader in the regional flexible packaging films market.