Pakistan’s listed pharmaceutical sector earned Rs11.6 billion in profit after tax in the first quarter of FY2027, an 11 percent rise from a year earlier, Topline Securities said, citing stronger sales and wider gross margins.
Net sales climbed 5 percent year-on-year and 11 percent from the previous quarter to Rs98.8 billion. Gross profit grew 10 percent year-on-year to Rs43.2 billion. The sector’s gross margin moved up to 43.7 percent, from 41.9 percent in 1QFY26 and 42.8 percent in 4QFY26.
Earnings improved even as investor valuations slipped. Sector market capitalisation stood at Rs505.2 billion on 30 October 2026, down 24 percent year-on-year and 13 percent quarter-on-quarter.
Sales mix, prices and company shares
Topline Securities linked the sales rise mainly to a more favourable product mix and higher prices and volumes. Growth held despite pharmaceutical exports to Afghanistan remaining suspended since October 2025, after a higher 1QFY26 sales base that still included those shipments.
Abbott Laboratories Pakistan accounted for 21 percent of sector sales in the quarter, followed by GlaxoSmithKline Pakistan at 17 percent, The Searle Company at 11 percent and Haleon Pakistan at 10 percent.
Among companies covered, AGP, Searle and Highnoon Laboratories posted the strongest gross margins, at 64.6 percent, 57.2 percent and 57.1 percent respectively. Selling and distribution expenses rose 6 percent year-on-year to Rs18.6 billion. Administrative expenses increased 14 percent year-on-year to Rs3.6 billion.
Costs, tax and company results
Finance costs—the interest and related charges firms pay on borrowing—rose 22 percent year-on-year and 44 percent quarter-on-quarter to Rs1.2 billion. Topline Securities pointed to higher finance costs at GlaxoSmithKline Pakistan, AGP and Haleon Pakistan. Other income fell 15 percent year-on-year and 69 percent quarter-on-quarter to Rs802 million, mainly on weaker contributions from Hoechst Pakistan, GlaxoSmithKline Pakistan and The Searle Company.
The sector’s effective tax rate was 37.9 percent in 1QFY27, compared with 39.4 percent in 1QFY26 and 50.4 percent in 4QFY26. Total tax charged in the quarter was Rs7.1 billion.
GlaxoSmithKline Pakistan reported net sales of Rs16.6 billion, up 17 percent, with profit after tax up 28 percent to Rs2.6 billion. Abbott Laboratories Pakistan posted sales of Rs20.6 billion, up 4 percent, and profit after tax of Rs2.5 billion, up 40 percent. Searle’s sales rose 15 percent to Rs11.2 billion, with profit after tax up 31 percent to Rs1.2 billion.
Haleon Pakistan’s sales fell 5 percent to Rs10 billion and profit after tax declined 5 percent to Rs1.5 billion. Highnoon Laboratories lifted sales 5 percent to Rs7.5 billion, while profit after tax slipped 2 percent to Rs931 million. AGP’s sales dropped 15 percent to Rs6.4 billion and profit after tax fell 12 percent to Rs1 billion.
Timeline: what has happened so far
- October 2025: Pharmaceutical exports to Afghanistan are suspended.
- 1QFY26: Sector sales still include Afghanistan export volumes; gross margin is 41.9 percent and the effective tax rate is 39.4 percent.
- 4QFY26: Gross margin stands at 42.8 percent; the effective tax rate is 50.4 percent.
- 1QFY27: Listed pharmaceutical sector profit after tax reaches Rs11.6 billion; net sales are Rs98.8 billion and gross margin is 43.7 percent.
- 30 October 2026: Sector market capitalisation is Rs505.2 billion, 24 percent lower than a year earlier.
Aasan alfaaz mein
Pakistan ki listed pharma companies ka pehle quarter mein munafa 11.6 arab rupay ho gaya, jo pichhle saal se 11 percent zyada hai. Sales aur margins behtar hue, lekin kuch companies ka munafa gira aur Afghanistan export band hone ke bawajood yeh result aaya. Share market mein sector ki qeemat ghat gai. Aam logo ke liye yeh batata hai ke companies ki earning tez hai, lekin dawaiyon ke rates aur stock prices alag-alag asar dikha sakte hain.
