Pharma Sector Posts Rs11.6 Billion Profit
Pharma sector posts Rs11.6 billion profit in the first quarter of fiscal year 2027, according to a report by Topline Securities cited by ProPakistani. Profit after tax rose 11 per cent year on year for Pakistan’s listed pharmaceutical companies, supported by higher sales and better gross margins.
While earnings improved, the sector’s total market value fell sharply over the same period. That split between rising profits and a falling market value is the most striking feature of the quarter.
Pharma sector posts Rs11.6 billion profit on higher sales
Net sales for the listed sector reached Rs98.8 billion in the quarter, up 5 per cent year on year and 11 per cent quarter on quarter. Gross profit rose 10 per cent year on year to Rs43.2 billion. The gross margin improved to 43.7 per cent, from 41.9 per cent in the same quarter last year and 42.8 per cent in the previous quarter.
Topline Securities linked the sales growth mainly to a more favourable product mix and to higher prices and volumes. The growth came despite a difficult base for comparison: exports to Afghanistan have remained suspended since October 2025, while the same quarter last year still included those exports.
Four firms accounted for most of the sector’s sales: Abbott Laboratories Pakistan at 21 per cent, GlaxoSmithKline Pakistan at 17 per cent, The Searle Company at 11 per cent, and Haleon Pakistan at 10 per cent. Margins varied widely: AGP reported the highest gross margin at 64.6 per cent, followed by Searle at 57.2 per cent and Highnoon Laboratories at 57.1 per cent.
Costs rose, and other income fell
Selling and distribution expenses rose 6 per cent year on year to Rs18.6 billion, and administrative expenses rose 14 per cent to Rs3.6 billion. Finance costs climbed 22 per cent year on year to Rs1.2 billion, driven by higher costs at GlaxoSmithKline Pakistan, AGP, and Haleon Pakistan. Other income fell 15 per cent to Rs802 million, mainly on lower contributions from Hoechst Pakistan, GlaxoSmithKline Pakistan, and The Searle Company. The effective tax rate was 37.9 per cent, against 39.4 per cent a year earlier, and the total tax charge reached Rs7.1 billion.
Company results: Abbott and GSK led the growth
| Company | Net sales | Profit after tax |
|---|---|---|
| Abbott Laboratories Pakistan | Rs20.6 billion, up 4 per cent | Rs2.5 billion, up 40 per cent |
| GlaxoSmithKline Pakistan | Rs16.6 billion, up 17 per cent | Rs2.6 billion, up 28 per cent |
| The Searle Company | Rs11.2 billion, up 15 per cent | Rs1.2 billion, up 31 per cent |
| Haleon Pakistan | Rs10 billion, down 5 per cent | Rs1.5 billion, down 5 per cent |
| Highnoon Laboratories | Rs7.5 billion, up 5 per cent | Rs931 million, down 2 per cent |
| AGP | Rs6.4 billion, down 15 per cent | Rs1 billion, down 12 per cent |
Abbott and GlaxoSmithKline led profit growth in absolute terms. Haleon, Highnoon, and AGP all reported lower profit than a year earlier, even though Highnoon still grew its sales. AGP’s case is a reminder that a high gross margin alone does not guarantee profit growth when sales shrink.
Why the market value fell despite higher profit
The sector’s market capitalisation fell 24 per cent year on year to Rs505.2 billion as of October 30, 2026. A falling market value does not mean firms earned less. It means investors, in aggregate, were willing to pay less for the sector’s shares than a year earlier. Share prices reflect expectations about future earnings, interest rates, regulation, and risk, not only one quarter’s profit.
For patients, higher prices helped lift sales, so medicine costs remain a live issue even when company results improve. For policymakers, the suspended Afghanistan export channel is a point to watch, since its return would change the next sales comparison.
Frequently asked questions
What is Q1 FY27 for Pakistan’s listed firms?
Q1 FY27 is the first quarter of fiscal year 2027, when listed pharmaceutical firms reported profit after tax of Rs11.6 billion.
Why did pharma sector profit rise?
Profit rose 11 per cent year on year because net sales grew to Rs98.8 billion and the gross margin improved to 43.7 per cent, helped by product mix, prices, and volumes.
Why did the sector’s market value fall?
Market capitalisation fell 24 per cent year on year to Rs505.2 billion as of October 30, 2026, even though profit rose. The report gives no single cause; share prices reflect future expectations as well as past earnings.
Which firms contributed most to sector sales?
Abbott led at 21 per cent, followed by GlaxoSmithKline at 17 per cent, Searle at 11 per cent, and Haleon at 10 per cent.
