The pharmaceutical manufacturer announced the results during its Annual General Meeting in Kampala on Tuesday, where shareholders also approved a higher dividend following the record earnings.
The company’s revenue rose by 8.8 percent from Shs267.1 billion in FY2025 to Shs290.5 billion, while operating profit increased by 24.2 percent to Shs73.8 billion. Operating cash flow more than doubled to Shs67.5 billion, up from Shs30.3 billion the previous year.
Qcil attributed the improved performance to better manufacturing efficiencies, tighter control of raw material costs, a stronger product mix and the full recovery of funds previously impaired from the Government of Zambia.
The company also announced major investments aimed at expanding local pharmaceutical production, including the completion of a hydroxyurea manufacturing plant for the treatment of sickle cell disease and the construction of a new manufacturing facility at its Luzira plant.
Once completed within the next 24 months, the new facility is expected to double Qcil’s production capacity and introduce injectable medicines into its product portfolio.
Emmanuel Katongole, the company’s chairman and co-founder, said the investments reflect Qcil’s long-term commitment to strengthening pharmaceutical manufacturing in Africa.
“FY26 was our strongest year yet, but what matters most is not what we earned; it is what we built, and who we built it for,” Katongole said.
He said the company had completed a dedicated hydroxyurea plant, making Qcil the only manufacturer of the sickle cell treatment on the African continent, and had also launched a paediatric antiretroviral medicine to improve access to HIV treatment for children.
During the year, Qcil introduced 15 new products targeting the private market, including medicines for diabetes, hypertension, malaria, bacterial infections, fungal infections and allergies.
Chief Executive Officer Ajay Kumar Pal said the company’s performance reflected a stronger and more diversified operating model.
“We are building a more efficient and diversified business, anchored in uncompromising quality and focused on the availability, affordability and accessibility of our medicines,” Pal said.
Shareholders approved a final dividend of Shs6.4 per share, bringing the total dividend for FY2026 to Shs16.6 per share, a 23 percent increase from Shs13.5 per share paid in the previous financial year.
However, the board cautioned investors against expecting similar payouts in future, noting that the latest results were partly boosted by one-off gains, including the recovery of previously impaired receivables from the Government of Zambia.
Looking ahead, Qcil said profitability could come under pressure from increased global competition, changing procurement trends, supply chain disruptions and fluctuations in the cost of pharmaceutical raw materials.
Despite the expected headwinds, the company said it would continue investing in production capacity, expanding its product portfolio and improving operational efficiency to support long-term growth and strengthen Africa’s pharmaceutical manufacturing industry.