⚡ Flash Summary

Nimir Resins Limited (NRSL) reported an 8% increase in revenue but a decline in profit after tax (PAT) for 2025. The revenue growth was driven by new products and a collaboration with Rudolf, a German specialty chemicals conglomerate. However, PAT decreased due to a reduction in international feedstock prices and inventory losses. The company is optimistic about FY 2026, anticipating margin improvement and stronger performance.

📌 Key Takeaways

• 📈 NRSL achieved an 8% increase in revenue for 2025, driven by new products and strategic collaborations.
• 🤝 The company collaborated with Rudolf, a German conglomerate, enhancing its specialty chemicals portfolio.
• 📉 Profit After Tax (PAT) declined due to reduced international feedstock prices and inventory losses.
• 🌱 NRSL introduced new products, expanding its offerings in the chemical sector.
• ✍️ A contract was signed with a multinational for toll manufacturing, increasing operational capacity.
• 🧪 Technical and R&D capabilities were enhanced to support product innovation and quality.
• 💸 Sales reached PKR 9.259 Billion.
• 💰 Gross profit was PKR 935 Million.
• 📊 Operating profit amounted to PKR 664 Million.
• 🧾 EPS stood at PKR 1.97 per share.
• ✅ The face value of shares changed from Rs. 5/- to Rs. 10/- in FY 2022.

🎯 Investment Thesis

HOLD. While NRSL has shown revenue growth and is taking steps to expand its product portfolio and operational capabilities, the decline in profitability is concerning. The company’s outlook for FY 2026 suggests potential improvements, but it is too early to be certain. Therefore, a HOLD recommendation is appropriate until the company demonstrates sustained profitability and margin improvement.