Company records Nu 74.31 million pre-tax profit as income rises by 17.2 percent.
Bhutan Ferro Alloys Limited (BFAL) has returned to profitability in the first half of 2026, reporting a net profit of Nu 58.23 million for the six months ended June 30, compared with a loss of Nu 12.69 million during the same period last year.
The company’s unaudited financial results show a significant improvement in its financial performance, supported by higher income and a reduction in total expenditure relative to revenue growth.
BFAL reported total income of Nu 1.586 billion during the first half of 2026, up 17.2 percent from Nu 1.352 billion recorded in the corresponding period of 2025.
The increase in income, combined with improved expenditure management, helped the company move from a pre-tax loss of Nu 12.69 million in the first half of last year to a pre-tax profit of Nu 74.31 million this year.
The company’s total expenditure stood at Nu 1.511 billion, compared with Nu 1.365 billion in the same period last year, representing an increase of about 10.7 percent. Although expenditure increased in absolute terms, its growth remained below the rate of income growth, contributing to the improved financial outcome.
The difference between total income and expenditure resulted in a profit before taxation of Nu 74.31 million for the six months ended June 2026. In contrast, the company recorded a loss before taxation of Nu 12.69 million in the first half of 2025.
Following a corporate tax expense of Nu 16.08 million, BFAL reported a profit after tax of Nu 58.23 million. The company did not report a corporate tax expense in the corresponding period last year, when it recorded a net loss.
The latest results mark a notable recovery for the company, with the improvement in pre-tax earnings amounting to Nu 87 million compared with the first half of 2025.
The stronger performance also translated into higher earnings per share. BFAL reported earnings of Nu 3.88 per share for the first half of 2026, reversing the loss of Nu 0.85 per share recorded during the same period last year.
The company’s paid-up equity share capital remained unchanged at Nu 150 million.
While total income grew faster than expenditure, the company spent approximately 95.3 percent of its total income during the first half of 2026. This left a pre-tax profit margin of about 4.7 percent.
For the first half of 2025, expenditure exceeded income, resulting in a loss margin of approximately 0.9 percent. The results indicate that BFAL has strengthened its earnings position compared with the previous year. Sustaining this improvement will depend on the company’s ability to maintain income, manage expenditure and navigate the market conditions affecting its business.
With a net profit of Nu 58.23 million in the first half of 2026, BFAL has entered the second half of the year on a stronger financial footing than it did in 2025. The next set of financial results will show whether the company can build on the recovery and deliver sustained profitability.
Tashi Namgyal, Thimphu
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