LAHORE: Rupali Polyester Limited reported a reduced quarterly loss for the three months ended March 31, 2026, despite a significant decline in sales, as the company benefited from improved cost management and lower operating losses in a challenging business environment.

According to the company’s third-quarter financial report, net sales for the quarter stood at Rs.501.45 million, down from Rs.622.74 million in the corresponding period last year. The decline was primarily attributed to global economic uncertainty, subdued domestic demand, and persistent pressure on Pakistan’s polyester industry.

The company recorded a gross loss of Rs.106.49 million, an improvement from the Rs.158.03 million gross loss reported in the same quarter of the previous fiscal year. Similarly, loss before tax narrowed to Rs.239.37 million, compared to Rs.281.55 million a year earlier. After accounting for taxes, Rupali Polyester posted a net loss of Rs.234.69 million, improving from Rs.289.33 million in the corresponding quarter of FY2025.

For the nine-month period ended March 31, 2026, the company’s revenue fell sharply to Rs.2.36 billion from Rs.5.27 billion in the same period last year. However, the cumulative net loss narrowed significantly to Rs.214.58 million, compared with Rs.1.03 billion in the corresponding period of FY2025, reflecting a notable improvement in overall financial performance despite lower sales volumes.

Management stated that the polyester industry continues to face multiple headwinds, including elevated energy prices, weak domestic demand, intense competition from imported products, tight liquidity, and increased production costs. The company also highlighted the impact of regional geopolitical tensions, particularly disruptions to global energy markets, which have further increased logistics and raw material costs.

The directors also expressed concerns over the burden of super tax, urging the government to allow industrial companies to pay the levy through easier installment plans instead of lump-sum recoveries, which they believe place additional financial strain on manufacturers.

Rupali Polyester reported a loss per share (LPS) of Rs.6.89 for the third quarter, compared with Rs.8.49 in the same period last year. For the nine months, the company posted an LPS of Rs.6.30, significantly lower than the Rs.30.02 loss per share recorded in the corresponding period of FY2025, reflecting a marked recovery in earnings performance despite the difficult operating environment.

The company acknowledged the continued support of its shareholders, financial institutions, government authorities, customers, and employees, expressing confidence that ongoing economic stabilization measures and supportive policies could help improve business conditions in the coming quarters.