KARACHI: Pak Leather Crafts Limited (PSX: PAKL) reported a net loss of Rs10.95 million for the nine-month period ended March 31, 2026, a sharp reversal from the Rs184,214 profit recorded during the corresponding period last year, reflecting a significant deterioration in the company’s financial performance.
According to the financial results approved by the company’s Board of Directors on April 28, 2026, the company did not announce any cash dividend, bonus shares, right shares, or other corporate entitlement for shareholders.
During the nine-month period, Pak Leather Crafts generated sales of Rs6.55 million, a steep decline from Rs43.08 million in the same period last year. The company also posted a gross loss of Rs2.50 million, compared with a gross profit of Rs8.99 million a year earlier, highlighting the pressure on its core operations. Rental income of Rs1 million provided some support to earnings but was insufficient to offset rising costs and operating expenses.
Administrative expenses stood at Rs8.83 million, while selling and distribution expenses totaled Rs541,569. As a result, the company recorded a pre-tax loss of Rs10.98 million, compared with a pre-tax loss of Rs529,878 in the corresponding period last year. The loss per share (LPS) widened to Rs3.22, compared with earnings per share (EPS) of Rs0.05 in the previous year’s nine-month period.
For the third quarter alone, Pak Leather Crafts posted a net loss of Rs4.29 million, compared with a profit of Rs434,440 in the same quarter last year. Quarterly loss per share came in at Rs1.26, versus earnings per share of Rs0.13 in the corresponding period of 2025.
The company’s financial position shows total assets of Rs71.42 million as of March 31, 2026, while accumulated losses increased to Rs364.30 million. Cash and bank balances improved to Rs1.17 million, although the company continues to face significant liabilities, including short-term borrowings of Rs215.29 million.
The latest results underscore the challenging business environment facing Pak Leather Crafts, as declining sales and persistent operating costs weighed heavily on profitability during the current financial year.
