IBL HealthCare (PSX: IBLHL) sent its results for the first quarter of its 2027 financial year (July to September 2026) to the stock exchange on 29 October 2026, after a board meeting on 28 October. The filing contains the financial statements only, without a directors’ review, so the reasons behind some changes are not explained.
The headline: a profit after tax of Rs 64.1 M, or Rs 0.65 a share, down 8.1% from Rs 69.7 M (Rs 0.71, restated for the larger number of shares) a year earlier. Profit was, however, 21% higher than in the April to June 2026 quarter. The board declared no dividend.
The quarter in numbers
| Rs M | Jul to Sep 2026 | Jul to Sep 2025 | Change |
|---|---|---|---|
| Revenue | 1,121.2 | 1,120.9 | flat |
| Cost of sales | (729.3) | (720.8) | +1.2% |
| Gross profit | 391.8 | 400.1 | −2.1% |
| Gross margin | 34.9% | 35.7% | |
| Other income | 7.6 | 2.2 | |
| Marketing and distribution expenses | (238.6) | (230.1) | +3.7% |
| Administrative and general expenses | (68.2) | (39.8) | +71.2% |
| Profit from operations | 92.7 | 132.3 | −30.0% |
| Finance cost | (1.0) | (9.2) | −89.1% |
| Levies (minimum tax) | (1.1) | (8.5) | |
| Profit before tax | 90.6 | 114.6 | −21.0% |
| Income tax | (26.5) | (44.9) | −41.0% |
| Profit after tax | 64.1 | 69.7 | −8.1% |
| Earnings per share, Rs | 0.65 | 0.71 | −8.5% |
What drove the result
No sales growth. Revenue was Rs 1,121 M, almost exactly the same as a year earlier, while cost of sales rose 1.2%. The gross margin slipped to 34.9% from 35.7%.
Overheads rose. Marketing and distribution expenses rose 3.7%, but the bigger change was administrative and general expenses, up 71% to Rs 68.2 M. The filing does not break this line down. Together, these took operating profit down 30% to Rs 92.7 M.
Below the line, things improved. Finance cost fell to Rs 1.0 M from Rs 9.2 M because the company has repaid its short-term borrowing, and other income rose to Rs 7.6 M, including a Rs 3.7 M unrealised gain on short-term investments. The combined tax and levy charge was about 30% of pre-tax profit, against about 43% a year earlier. That lower tax charge turned a 21% fall in pre-tax profit into an 8% fall after tax.
The balance sheet and cash
- Debt-free with cash. Short-term borrowing was nil at 30 September, against Rs 6.7 M in June. Cash and short-term investments together came to about Rs 445 M, down from Rs 727 M in June.
- Working capital used cash again. Operating cash flow was negative Rs 277 M (negative Rs 479 M a year earlier). Inventories fell by Rs 178 M, but receivables rose by Rs 164 M to Rs 1.70 bn and the company paid down Rs 297 M of trade payables.
- Equity. Shareholders’ equity rose to Rs 2.61 bn. Paid-up capital is Rs 985 M, about 15% higher than a year ago, which is why last year’s earnings per share were restated.
Valuation snapshot
At the 28 October close of Rs 39.86:
| Measure | Value |
|---|---|
| Earnings per share, last 12 months (October 2025 to September 2026) | about Rs 2.18 |
| Price to earnings | about 18 times |
| Book value per share | about Rs 26.5, so price to book of about 1.5 |
| Cash and short-term investments per share | about Rs 4.5 |
| Market value (98.5 million shares) | about Rs 3.9 bn |
| Share price, last 52 weeks | low Rs 37.33, high Rs 80.28 |
The share has halved from its 52-week high and is close to its low. Even so, at about 18 times earnings it is not cheap for a company whose profit for the last four quarters has been flat to lower and whose sales did not grow this quarter.
What to watch next
- Sales growth. Revenue for the 2026 financial year rose 6.6% to Rs 4.61 bn; a flat first quarter puts the focus on whether growth returns.
- Administrative costs. Whether the 71% increase is a one-off or a new base. The full quarterly report, due through the exchange’s filing system, may explain it.
- Gross margin. A small slip this quarter, from 35.7% to 34.9%; a further fall would weigh on profit even if sales recover.
- Receivables. At Rs 1.70 bn, more than a full quarter’s sales, they tie up cash.
- Dividend. None this quarter.
The bottom line
IBL HealthCare’s quarter showed no growth: sales were flat, the margin slipped and overheads rose, cutting operating profit by 30%. Lower finance and tax costs softened the hit, so profit after tax fell only 8%, and it was better than the previous quarter. The balance sheet is clean, with no debt and Rs 445 M of cash and investments, but the share needs a return to sales growth to justify its earnings multiple.
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Bilal, Market Pulse Hub
Source: IBL HealthCare Limited, financial results for the quarter ended 30 September 2026 sent to the Pakistan Stock Exchange (unaudited condensed interim financial statements). Earlier quarters from company filings; April to June 2026 profit is derived from the 2026 annual result less the first three quarters. Prices from the PSX data portal. Twelve-month, per-share and valuation figures are our calculations. This article is for education and information only and is not investment advice.