International Steels Limited (ISL): A Tough Year, but Signs of Recovery

International Steels Limited (ISL) just announced its results for FY25, and the numbers show a mixed picture.

The company posted earnings of PKR 1.56 billion (EPS: PKR 3.58), which is 57% lower than last year. That’s a big drop, mainly because international steel prices were weaker this year. For example, CRC (Cold Rolled Coil) prices averaged $555/ton compared to $630/ton in FY24, a decline of about 12%.

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But there’s some good news too. In the last quarter (4QFY25), ISL’s profits rose 46% compared to the previous quarter. Gross margins improved to 10.68%, the best level in many quarters, thanks in part to cost savings from its new 6.4MW solar plant. Lower energy costs are starting to show results.

Revenues also picked up strongly in the last quarter, rising 25% YoY to PKR 16.6 billion, supported by a recovery in local flat steel sales. On top of that, finance costs fell sharply (down 52% YoY in 4Q) as interest rates eased.

The company rewarded shareholders with a cash dividend of PKR 2.5 per share, slightly above industry expectations.

Looking ahead, ISL trades at 8.2x PE for FY26E and 6.5x for FY27F, with dividend yields of 8–10%. That makes it attractive for investors who believe steel demand will keep improving alongside Pakistan’s construction and manufacturing recovery.

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Key takeaway:

FY25 was a tough year overall, but ISL’s last quarter showed that things are moving in the right direction. With lower energy and finance costs, plus better demand, the company looks better positioned for FY26.

Source: Topline Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →