KARACHI: Tri-Pack Films Limited turned a Rs468 million loss into a Rs361.6 million profit in the first half of 2026. Its board looked at that recovery and declared nil across the board no cash dividend, no bonus shares, no right shares.

Directors approved the packaging manufacturer's condensed interim financial statements for the six months ended June 30, 2026. Strip away the accounting and a simpler picture emerges: business is genuinely improving, but a fresh charge on Tri-Pack's books is quietly eating into the upside.

The Margin Story Hiding Inside The Revenue Number

Revenue rose 19%, reaching Rs17.28 billion against Rs14.51 billion a year earlier solid, unremarkable growth on its own. What isn't unremarkable is what happened below that line. Gross profit jumped 60%, to Rs3.09 billion. Operating profit climbed even further, up 86% to Rs1.77 billion from Rs956 million.

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Sales grew at a healthy clip. Operating profit grew at more than four times the rate. That gap is the real headline buried in Tri-Pack's filing: the company generated substantially more profit from its expanding revenue base, pointing to stronger margins rather than a turnaround driven by sales growth alone.

Other income helped too, more than tripling to Rs613.7 million from Rs172.6 million. Add it up and pre-tax profit hit Rs1.07 billion, a sharp reversal from last year's Rs287.98 million pre-tax loss.

Per-share earnings tell the same story in miniature: a loss of Rs12.07 last year became a profit of Rs9.32 this year, a swing north of Rs21 a share.

The Cash didn't Follow The Profit

Operating cash generation actually fell even as reported profit surged. Cash generated from operations dropped to Rs2.49 billion from Rs2.77 billion; net cash from operating activities slid to Rs1.73 billion from Rs2.37 billion.

Profit and cash clearly moved in different directions. The balance sheet offers part of the explanation: inventories climbed to Rs6.44 billion from Rs4.85 billion at the end of 2025, while trade receivables rose to Rs4.98 billion from Rs3.49 billion. That expansion tied up more money in working capital even as reported earnings recovered.

Sindh Cess Takes a Fresh Bite from Earnings

Tri-Pack's accounts show a charge labeled "Levies" for the first time this period Rs227.8 million, versus zero in the same period last year. Trace it back to the balance sheet and the source appears: a liability labeled "Sindh Infrastructure Development Cess," now sitting at Rs456.7 million, up from nothing at the end of 2025.

It has emerged as a significant cost in Tri-Pack's latest accounts. Income tax rose too, climbing to Rs485.9 million from Rs180.2 million, simply because there was more profit to tax this time around.

On the debt side, there's at least some breathing room. Finance costs eased to Rs1.26 billion from Rs1.41 billion. Long-term borrowings fell to Rs10.4 billion from Rs11.03 billion. Short-term borrowings moved the other way, rising to Rs6.56 billion from Rs5.98 billion.

Separately, Tri-Pack announces that a new tape machine had been successfully commissioned in August. with the capacity of 5,000 tonnes a year. The company says it expects the addition to open doors with new customers, both in Pakistan and abroad.

That timing lines up with a jump in capital spending. Tri-Pack put Rs757.2 million into property, plant and equipment during the half, up roughly 75% from Rs432 million a year earlier.

Real operational improvement, but zero cash return to shareholders. Whether that changes will depend on three things investors cannot answer yet whether the stronger margins hold, whether financing and levy costs remain under control, and whether the new 5,000-tonne capacity translates into meaningful domestic and export sales.