Siemens (Pakistan) Engineering Co. Ltd. (PSX: SIEM) reported a sharp 97.8% year-on-year decline in net profit for the half year ended March 31, 2026, as rising operating costs and higher levy charges significantly impacted earnings.
The company posted a profit after tax of Rs12.64 million compared to Rs583.32 million recorded in the same period last year. Consequently, earnings per share (EPS) dropped to Rs1.53 from Rs70.73.
Despite the earnings pressure, Siemens Pakistan achieved 6.4% growth in net sales and services, reaching Rs3.50 billion against Rs3.29 billion a year earlier.
However, stronger revenue could not offset rising costs. Cost of sales and services surged 13.4% YoY to Rs2.96 billion, resulting in gross profit falling 20.4% to Rs545.84 million.
Operating expenses also moved higher during the period. Marketing and selling expenses increased to Rs585.05 million, while administrative expenses climbed to Rs93.55 million. At the same time, reversal of expected credit losses declined sharply.
As a result, total operating expenses rose 15.4% YoY, pushing the company into an operating loss of Rs106.24 million compared with an operating profit of Rs87.68 million in H1FY25.
Below the operating level, financial income improved strongly and rose 64.8% to Rs220.51 million, partially supporting earnings. However, levy expenses jumped 45.7% YoY to Rs85.74 million, causing profit before income tax to collapse 99.4% to just Rs0.91 million.
An income tax credit of Rs11.73 million provided some relief, helping Siemens Pakistan close the period with a modest profit.
Overall, the company’s performance reflected margin erosion, higher operating expenditures, and increased levy charges, which overshadowed sales growth during H1FY26.
