IPAK Group earnings surge 7x to around Rs5bn in FY26

MG News September 10, 2026 (MLN): IPAK Group posted a consolidated profit after tax (PAT) of Rs4.95bn for the year ended June 30, 2026, marking a sharp increase from Rs664 million recorded in FY2025. Earnings per share (EPS) rose to Rs6.73 from Rs1.64 last year, while consolidated sales grew 23% year-on-year to Rs42.17bn. The Group's improved earnings were supported by stronger margins across its integrated BOPP, BOPET and CPP films operations, with gross profit climbing 88% to Rs9.39bn. Gross margin consequently improved to 22.3% from 14.5% in FY2025, while operating profit increased to Rs8.14bn from the previous year, taking the operating margin to 19.3% from 11.1%. The Board of Directors has recommended a cash dividend of Rs2.00 per share for FY2026, compared with Rs0.60 per share distributed for FY2025. Exports also posted notable growth during the year, rising around 30% to Rs10.4bn, equivalent to approximately $37m. Export revenue accounted for nearly 25% of consolidated sales, up from 23% a year earlier. The Group continued to expand its international market presence while shifting greater focus towards specialized and value-added packaging films, aimed at improving product differentiation and margins. On a standalone basis, IPAK's gross profit increased to Rs3.08bn, while profit after tax rose around 55% to Rs1.32bn. Standalone EPS stood at Rs1.79, compared with Rs1.16 in FY2025. The standalone improvement was supported by the allocation of production capacity towards relatively higher-margin domestic business and a stronger product mix. Looking ahead, management expects the business environment to remain challenging in the near term amid geopolitical uncertainty and possible disruptions to global trade and supply chains. The Group plans to maintain its focus on operational efficiency, innovation, value-added products and international market expansion to strengthen competitiveness and support sustainable growth. Copyright Mettis Link News