National Foods Limited (PSX: NATF) has reported a sharp jump in profitability for the fiscal year 2025-26, with consolidated profit after tax rising 195% year-on-year to Rs. 5.917 billion. The National Foods profit FY26 result marks one of the strongest earnings performances among Pakistan’s listed consumer goods companies this reporting season.
Earnings per share climbed to Rs. 11.42, up sharply from Rs. 2.33 in the previous year. The company also announced a full-year dividend of Rs. 30 per share, including a fourth-quarter dividend of Rs. 5 per share, rewarding shareholders for the strong annual performance.
What Drove the Profit Surge
Net sales for the year rose 14% to Rs. 50.6 billion, while gross profit increased 20% to Rs. 19.447 billion. However, the fourth-quarter gross margin actually fell to 33% from 38% a year earlier, suggesting that margin pressure crept in during the final quarter even as full-year top-line growth remained solid.
The biggest driver of the massive bottom-line jump was a 251% surge in other income, which reached Rs. 8.06 billion. This was fueled by a combination of interest earned on short-term investments and proceeds from the sale of the company’s Cash & Carry business, both one-off or non-core contributions rather than growth from National Foods’ core food products business.
Why Analysts Are Flagging the Headline Numbers
Brokerage house Topline Securities has cautioned that the headline EPS figure overstates the company’s recurring earning power. According to Topline’s analysis, National Foods’ recurring EPS for the year was closer to Rs. 25.4, compared to the reported Rs. 111.4 — a figure inflated substantially by the one-off gains from the Cash & Carry sale and investment income.
This distinction matters for investors trying to gauge the company’s sustainable earnings trajectory going forward, since one-time gains like a business unit sale will not repeat next year. Even accounting for the adjustment, National Foods’ underlying operating performance — with 14% sales growth and 20% gross profit growth — still points to a business that grew meaningfully during FY26, just not at the eye-catching pace suggested by the headline profit figure. The result adds to a busy week of corporate and economic news, alongside developments like PTA’s latest survey ranking the best mobile networks in Pakistan.