Chellarams Posts ₦1.85bn Half-Year Profit as ₦7.61bn Working-Capital Deficit Persists

Chellarams Plc reported a strong turnaround for the six months ended 30 September 2026, with group revenue of ₦17 billion and profit after tax of ₦1.85 billion. This compares with group profit before tax of ₦126.6 million in the same period of 2025. Profit attributable to shareholders reached ₦1.64 billion, equivalent to earnings per share of about ₦2.27. At a share price of ₦9.70, the stock trades at an estimated annualised price-to-earnings ratio of about 2.1 times. However, the balance sheet remains under pressure. Group current liabilities exceed current assets by roughly ₦7.61 billion, while retained earnings remain negative at ₦7.67 billion. Investors may welcome the profit recovery, but sustained cash-flow improvement and lower short-term funding pressure will be key to a lasting recovery.

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