Pakistan's Listed Pharma Sector Posts 11% Profit Growth to Rs. 11.6 Billion in Q1 FY2027
Listed pharmaceutical companies reported an 11% year-on-year rise in profit after tax to Rs. 11.6 billion in Q1 FY2027, helped by higher sales and improved gross margins, even as sector market capitalization fell 24%.
Pakistan's listed pharmaceutical sector recorded an 11 percent year-on-year increase in profit after tax to Rs. 11.6 billion in the first quarter of FY2027, according to a report by Topline Securities. The growth was supported by higher sales and improved gross margins across the sector.
Net sales rose 5 percent year-on-year and 11 percent quarter-on-quarter to Rs. 98.8 billion. Gross profit increased 10 percent year-on-year to Rs. 43.2 billion, lifting the sector's gross margin to 43.7 percent, up from 41.9 percent in the same quarter of the previous fiscal year and 42.8 percent in the preceding quarter. Topline Securities attributed the sales increase mainly to a more favorable product mix as well as higher prices and volumes. The gains came despite exports to Afghanistan remaining suspended since October 2025, which had been included in the higher sales base of the comparative quarter.
Despite the earnings growth, the sector's market capitalization fell 24 percent year-on-year and 13 percent quarter-on-quarter to Rs. 505.2 billion as of October 30, 2026. Abbott Laboratories Pakistan led sector sales with a 21 percent share, followed by GlaxoSmithKline Pakistan at 17 percent, The Searle Company at 11 percent and Haleon Pakistan at 10 percent. Among covered companies, AGP, Searle and Highnoon Laboratories reported the highest gross margins at 64.6 percent, 57.2 percent and 57.1 percent, respectively.
Operating costs also moved higher. Selling and distribution expenses increased 6 percent year-on-year and 5 percent quarter-on-quarter to Rs. 18.6 billion, while administrative expenses rose 14 percent year-on-year and 5 percent quarter-on-quarter to Rs. 3.6 billion. Finance costs climbed 22 percent year-on-year and 44 percent quarter-on-quarter to Rs. 1.2 billion, mainly due to higher charges at GlaxoSmithKline Pakistan, AGP and Haleon Pakistan. Other income declined 15 percent year-on-year and 69 percent quarter-on-quarter to Rs. 802 million, largely on lower contributions from Hoechst Pakistan, GlaxoSmithKline Pakistan and The Searle Company.
The sector's effective tax rate eased to 37.9 percent in Q1 FY2027, compared with 39.4 percent a year earlier and 50.4 percent in the previous quarter, with the total tax charge reaching Rs. 7.1 billion. On a company level, GlaxoSmithKline Pakistan posted net sales of Rs. 16.6 billion, up 17 percent, with profit after tax rising 28 percent to Rs. 2.6 billion. Abbott Laboratories Pakistan recorded sales of Rs. 20.6 billion, up 4 percent, and profit after tax of Rs. 2.5 billion, up 40 percent.
The Searle Company reported sales growth of 15 percent to Rs. 11.2 billion and a 31 percent rise in profit after tax to Rs. 1.2 billion. Haleon Pakistan bucked the trend, with sales declining 5 percent to Rs. 10 billion and profit after tax falling 5 percent to Rs. 1.5 billion. The results highlight a sector that is expanding its top and bottom lines on pricing and product mix even as investor sentiment, reflected in the sharp decline in market capitalization, remains under pressure.
