⚡ Flash Summary

International Industries Limited (INIL) reported a strong first quarter for fiscal year 2025-2026, showcasing resilience in a challenging global steel market. The company achieved double-digit growth in sales volumes, leading to a 31% increase in profit after tax to Rs. 597 million. This growth was primarily driven by higher dividend income from its subsidiary, International Steels Limited (ISL), and consistent operating performance. Earnings Per Share (EPS) also increased significantly to Rs. 4.53, compared to Rs. 3.44 in the same period last year.

📌 Key Takeaways

• 🚀 Revenue from contracts with customers increased to Rs. 7,302.232 million, a notable rise from Rs. 5,289.464 million in the same period last year.
• 💰 Profit after tax rose significantly to Rs. 597.196 million, marking a 31% increase compared to Rs. 453.950 million in the prior year.
• 📈 Earnings per share (EPS) improved to Rs. 4.53, up from Rs. 3.44 in the corresponding period of the previous year.
• 📊 Gross profit increased to Rs. 914.310 million from Rs. 522.506 million, indicating improved operational efficiency.
• 🌱 The primary subsidiary, International Steels Limited (ISL), reported a YTD profit after tax of Rs. 620.342 million, a substantial increase from Rs. 179.428 million last year.
• 🌐 The company achieved double-digit growth in sales volumes across major product lines, reflecting strong market presence.
• 💵 Other income decreased to Rs. 608.768 million from Rs. 844.194 million, impacted by changes in dividend income from ISL.
• 📉 Finance costs decreased to Rs. 142.169 million, down from Rs. 230.480 million in the previous year.
• 💼 Operating profit increased significantly to Rs. 379.946 million, compared to Rs. 100.958 million in the prior year.
• ✔️ The national economy is stabilizing, supported by IMF programs, with real GDP projected to rise to 3.6% in FY 2025-26.
• 🌱 Stock-in-trade increased to Rs. 9,920.710 million from Rs. 7,933.437 million, showing increased activity.
• ✔️ Total assets increased to Rs. 33,322.112 million from Rs. 29,919.042 million, reflecting overall growth in the company’s financial position.
• ✔️ Equity attributable to owners of the Holding Company increased to Rs. 19,728.389 million as of September 30, 2025.
• ✔️ The company’s management expresses optimism for the remainder of the fiscal year, focusing on market share, operational excellence, and value creation.

🎯 Investment Thesis

Based on the strong Q1 2026 results, I recommend a BUY rating for INIL. The company’s robust revenue growth, improved profitability, and strong performance of its subsidiary, ISL, make it an attractive investment. The target price is Rs. 250, with a time horizon of 12 months. This recommendation is based on the expectation that INIL will continue to benefit from infrastructure spending, stable macroeconomic conditions, and its focus on market share and operational efficiency.