Top Glove Corporation Bhd: 1QFY2026 Financial Analysis & Outlook
Top Glove Corporation Bhd, the world’s largest glove manufacturer, has released its financial results for the first quarter ended 30 November 2025 (1QFY2026). The company demonstrated strong earnings momentum, with a notable rebound in profitability and sales volume, despite challenging market conditions. This analysis reviews key financial metrics, performance trends, and provides an investment outlook based strictly on the disclosed results.
Key Financial Metrics and Performance Comparison
| Metric |
1QFY2026
(Nov 2025) |
4QFY2025
(Aug 2025) |
1QFY2025
(Nov 2024) |
YoY Change |
QoQ Change |
| Revenue (RM mil) |
884 |
894 |
886 |
0% |
-1% |
| Operating Profit (RM mil) |
41 |
28 |
4 |
+925% |
+46% |
| EBITDA (RM mil) |
130 |
107 |
92 |
+41% |
+21% |
| Profit Before Tax (RM mil) |
45 |
42 |
19 |
+137% |
+7% |
| PATAMI (RM mil) |
39 |
35 |
5 |
+680% |
+11% |
| EPS (sen, basic/diluted) |
0.48 |
0.44 |
0.07 |
+586% |
+9% |
| Dividend per Share (sen) |
0.48 |
0 (none proposed for 1Q) |
0 |
N/A |
N/A |
Notes:
PATAMI = Profit After Tax and Minority Interest. EPS = Earnings Per Share. QoQ = Quarter on Quarter. YoY = Year on Year.
Summary of Financial and Business Performance
- Revenue held stable YoY at RM884 million, but softened 1% QoQ due to a stronger Ringgit versus the US Dollar, despite a 17% increase in sales volume.
- Operating Profit surged 925% YoY to RM41 million, reflecting vastly improved cost discipline and operational efficiency.
- EBITDA jumped 41% YoY and 21% QoQ, with margin recovery to pre-pandemic levels.
- PATAMI soared 680% YoY to RM39 million, and increased 11% QoQ.
- EPS improved significantly to 0.48 sen versus 0.07 sen in the same quarter last year.
- Dividend: The company paid a dividend of 0.48 sen (RM38.53 million) for 1QFY2026, consistent with the payout policy but lower than historical highs.
Historical Performance Trends
Top Glove’s financials show a return to profitability after a challenging period post-pandemic. EBITDA margins have rebounded to 15% in 1QFY2026, returning to pre-pandemic levels after a dip into negative territory in FY2023. Revenue is stabilizing after the sharp correction from pandemic-driven highs, with sales volumes recovering and cost management initiatives taking effect.
| Financial Year Ended |
Revenue (RM mil) |
EBITDA (RM mil) |
PAT (RM mil) |
EBITDA Margin |
| 2021 |
16,361 |
10,285 |
7,824 |
63% |
| 2022 |
5,572 |
687 |
282 |
12% |
| 2023 |
2,257 |
-156 |
-886 |
-7% |
| 2024 |
2,514 |
253 |
-21 |
10% |
| 2025 |
3,493 |
448 |
123 |
13% |
| 1QFY2026 |
884 |
130 |
39 |
15% |
Chairman’s Statement
“We are proud of the progress we have made and the strong, healthy foundation we have built for the future. While we continue to navigate a challenging global landscape, we remain committed to quality, cost efficiency and good customer service. With the dedication of our team and the trust of all our stakeholders, we are confident that Top Glove will continue to grow responsibly and deliver positive impact for years to come.”
— Tan Sri Dr. Lim Wee Chai, Executive Chairman
Analysis: The tone is clearly positive, emphasizing resilience, commitment to operational excellence, and a confident outlook for responsible growth.
Dividends
- Dividend paid in 1QFY2026: 0.48 sen per share (RM38.53 million in total).
- No dividend was proposed for the current quarter, but this may reflect timing rather than a policy change.
- Dividend levels remain well below pandemic highs but show a return to regular shareholder payouts.
Corporate Actions and Noteworthy Events
- No material litigation or corporate proposals pending.
- No revaluation of property, plant, and equipment; the group does not adopt a revaluation policy.
- No new share buybacks, placements, or dilution beyond minor warrant conversions.
- Capital commitments of RM158 million approved and contracted for, indicating ongoing investment.
- ESG Recognition: Upgraded to AA in MSCI ESG Ratings and named to the UN Global Compact ESG Select List 2025, reflecting a strong sustainability focus.
- Foreign Exchange: Active hedging in place to mitigate currency volatility.
Outlook and Management Guidance
Management expects glove demand to continue growing across key geographies, with sales volume recovery and steady replenishment cycles. The group plans to reactivate additional production lines as utilization rises, supported by quality and cost optimization initiatives and prudent financial management. The company’s commitment to ESG and operational excellence is expected to underpin long-term value creation.
Conclusion & Investment Recommendation
Overall Assessment: Top Glove’s 1QFY2026 results present a strong recovery story, with significant improvement in profitability and operational efficiency. The company has successfully navigated post-pandemic headwinds and is benefiting from higher volumes, better cost control, and early signs of a normalized glove market. The positive outlook, strong cash position, and commitment to ESG further support the recovery narrative.
For Existing Shareholders:
The company’s return to sustained profitability, regular (if modest) dividends, and operational resilience suggest it is prudent to hold the stock for further recovery and income potential. Monitor for ongoing margin improvements and evidence of continued volume growth.
For Potential Investors (Not Holding):
Given the clear turnaround, improving fundamentals, and positive management outlook, investors considering exposure to the healthcare gloves sector may accumulate gradually on weakness, while remaining alert to currency risks and sector volatility. Entry should be staged, as the industry remains competitive and sensitive to global health trends.
Disclaimer: This analysis is strictly based on the company’s published financial report for 1QFY2026 and does not constitute investment advice. Investors should conduct their own due diligence and consider their risk tolerance before making any investment decisions.
View Top Glove Historical chart here
