Cutix Plc has returned to profitability in the first quarter of its 2027 financial year, with profit after tax rising to ₦58.3 million for the three months ended July 31, 2026, compared with a ₦105.8 million loss in the corresponding period last year.
The cable manufacturer’s revenue increased 5% year-on-year to ₦3.70 billion, while profit before tax improved to ₦88.4 million from a ₦89.4 million loss. The turnaround was supported by stronger operating performance: operating profit nearly doubled to ₦196.6 million from ₦100.3 million, while finance costs fell to ₦169.7 million from ₦190.8 million.
The balance sheet also showed a significant reduction in leverage. Short-term borrowings fell to ₦1.72 billion from ₦5.00 billion a year earlier, while total liabilities declined 58% to ₦2.80 billion. The company disclosed that it completed a ₦1.13 billion commercial-paper repayment during the period.
For investors, the key development is the combination of a return to profit and substantially lower debt, although revenue growth remains modest and finance costs are still significant. Cutix's shares closed at ₦2.39 on August 28, leaving investors to assess whether the earnings recovery can continue.
The next major catalyst will be whether stronger operating profitability persists through the remaining quarters while the company continues reducing its financing burden.
