Eunisell Interlinked Plc has kicked off its 2026 financial year on a modest note, posting a 23.4% year-on-year revenue growth to N445 million in its Q1 results for the period ended September 30, 2025.
The increase was driven primarily by a ramp-up in oil and gas services, which now dominates the company’s revenue mix.
However, despite the revenue boost, the company recorded a marginal dip in profit before tax to N115.3 million, down 5.8%, reflecting rising cost pressures.
Key Highlights (Q1 2026 vs Q1 2025)
- Revenue: N445.0 million, up 23.4%
- Gross profit: N179.3 million, up 6.3%
- Operating profit: N115.3 million, down 11.6%
- Profit before tax: N115.3 million, down 5.8%
- Profit after tax: N115.3 million, down 5.8%
- Total assets: N1.12 billion, up 20.3%
Oil & gas now the largest revenue stream
Eunisell’s pivot toward oil and gas has paid off in Q1 2026, with the segment contributing N372.6 million, or 83.7% of total group revenue, a dramatic leap from zero in the same period last year.
- Oil & Gas revenue: N372.6 million (vs N0 in Q1 2025)
- Construction/Manufacturing: N63.0 million, up 133% from N27.1 million
- Power Products revenue: Declined 98% to N7.9 million (from N320.9 million)
- Electrical Accessories: N1.5 million, down 88%
The shift highlights a clear business model transition, with the oil and gas segment now serving as the company’s main growth engine, replacing what was once a power-focused portfolio.
Operating profit squeezed by rising costs
Despite strong revenue growth, Eunisell’s profitability weakened under pressure from rising operating expenses and thinner margins.
- Gross margin slipped to 40.3% from 46.8%, while operating expenses rose 67% year-on-year to N63.9 million.
- Operating profit stood at N115.3 million, down 11.6%, with both profit before and after tax declining 5.8% year-on-year.
- The decline in margins reflects higher input costs and overheads, although the absence of finance costs, compared to N7.9 million in Q1 2025, helped cushion the overall impact on the bottom line.
Stronger balance sheet but more receivables
The company’s equity position improved significantly, supported by retained earnings, while total assets surpassed the N1 billion mark.
- Total assets: N1.11 billion, up 20.3% from June
- Shareholders’ equity: N647 million, up 33% QoQ
- Retained earnings: N296.2 million (up from N135.5 million)
- Debt: Short-term borrowings down to N66.8 million
- Trade payables: N102.6 million, up from N56.7 million
Despite a solid balance sheet, the 114.4% jump in trade receivables to N324.7 million signals rising pressure on liquidity and potential risks to cash flow.