KARACHI: Al-Khair Gadoon Limited has posted a return to profitability for the nine months ended March 31, 2026, although its third-quarter performance remained under pressure due to weaker margins and higher finance costs. The company announced its financial results following a meeting of its Board of Directors held on April 29, 2026.
According to the company’s financial statements, Al-Khair Gadoon reported a net profit of Rs1.37 million for the nine-month period of FY2026, a sharp decline from Rs16.75 million recorded during the corresponding period last year. Earnings per share (EPS) stood at Rs0.14, compared with Rs1.67 in the same period of FY2025.
Net sales for the nine-month period increased to Rs1.06 billion, up from Rs1.05 billion a year earlier. However, gross profit declined to Rs116.98 million from Rs131.23 million, reflecting increased production costs and pressure on profit margins. Operating profit also dropped significantly to Rs33.70 million, compared with Rs49.22 million in the corresponding period of the previous year.
During the quarter ended March 31, 2026, the company reported a net loss of Rs7.30 million, compared with a net profit of Rs9.72 million in the same quarter last year. Quarterly sales decreased to Rs376.23 million from Rs380.35 million, while gross profit fell by nearly 29% to Rs36.69 million. The decline was primarily driven by lower operating profitability and higher finance costs during the period.
On the financial position front, total assets stood at Rs781.18 million as of March 31, 2026, compared with Rs799.49 million at the end of June 2025. Shareholders’ equity improved to Rs343.47 million, supported by the profit earned during the reporting period, while short-term borrowings were reduced to Rs368.53 million from Rs367.15 million, reflecting ongoing efforts to manage working capital.
The Board of Directors did not recommend any cash dividend, bonus shares, or right shares for the quarter under review, opting instead to retain earnings as the company continues to navigate a challenging business environment.
Despite a difficult third quarter, Al-Khair Gadoon’s return to profitability over the nine-month period signals resilience amid rising costs and challenging market conditions. Investors will be closely watching the company’s performance in the final quarter of FY2026 to assess whether it can sustain its recovery and improve margins.
