A broad range of companies across Asia and Africa delivered robust profit growth in the first half of 2026, often far outpacing revenue increases, according to financial statements released this week. Indonesian energy firm PT Rukun Raharja (RAJA) saw net profit jump 88 per cent year-on-year to $28.9 million, while India’s Redington reported a 77 per cent surge to Rs 486 crore. Vedanta Aluminium’s net profit more than tripled to Rs 5,629 crore, and Bajaj Finance posted a 28 per cent rise. In Morocco, Cash Plus lifted net profit 18 per cent, and Bangladesh’s DBH Finance recorded a 32 per cent increase. The gains came despite persistent geopolitical tensions that executives said were disrupting raw material supply chains and clouding the outlook.

The profit expansion was underpinned by tight cost control and operational efficiency. At Indonesian distributor PT Mitra Pinasthika Mustika (MPMX), operating profit rose 25 per cent even as revenue dipped 1 per cent, lifting margins. Redington’s profit after tax grew more than twice as fast as revenue, which the company attributed to strong operating leverage. Vedanta Aluminium cut its cost of production by $20 per tonne during the quarter, despite what brokerages described as the impact of the Middle East conflict. Several firms also benefited from new capacity: RAJA cited the full contribution of its Sengkang Gas Compressor project, while PT Pertamina Geothermal Energy (PGE) increased electricity output by 13.6 per cent, helping net profit rise 15.5 per cent.

The results prompted some companies to raise full-year guidance. PT Impack Pratama Industri (IMPC), an Indonesian packaging manufacturer, lifted its 2026 net profit target to above Rp 800 billion after first-half profit rose 51 per cent, though it kept its revenue target unchanged. Others pointed to improving asset quality: Bajaj Finance’s gross non-performing assets fell to 0.96 per cent from 1.03 per cent a year earlier, and DBH Finance said its NPL ratio remained below 1 per cent. Yet management teams struck a cautious tone. IMPC’s president director warned that escalating geopolitical tensions were still affecting raw material supply and price normalisation. Redington flagged geopolitical uncertainties in its Middle East and Africa business, and Bajaj Finance’s management said it would monitor global events and monsoon fears for another quarter before revising guidance.

Looking ahead, brokerages see further upside for some firms if cost-reduction plans materialise. CLSA and Nuvama maintained buy ratings on Vedanta Aluminium, expecting captive mine starts to drive significant savings. For Bajaj Finance, Motilal Oswal upgraded the stock to buy, citing accelerating profitability. However, analysts also cautioned that second-quarter earnings could soften sequentially due to lower aluminium prices and cost headwinds. The immediate focus for investors will be how these companies navigate the second half, with geopolitical developments and commodity price trends likely to determine whether the first-half momentum can be sustained.