KARACHI: Paramount Spinning Mills Limited reported a loss for the third quarter and the first nine months of FY2026, reflecting a sharp deterioration in financial performance compared to the same period last year. The company also announced that its Board of Directors has decided not to recommend any cash dividend, bonus shares, or right shares for shareholders.

According to the financial results for the quarter ended March 31, 2026, the company posted a net loss after tax of Rs794,425, compared with a profit after tax of Rs16.44 million recorded in the corresponding quarter of FY2025. This translated into a loss per share (LPS) of Rs0.05, against earnings per share (EPS) of Rs0.95 a year earlier.

For the nine-month period ended March 31, 2026, Paramount Spinning Mills reported a net loss of Rs3.93 million, compared with a net profit of Rs16.44 million in the same period last year. The company posted a loss per share of Rs0.23, reversing from earnings per share of Rs0.95 in the corresponding period of FY2025.

The financial statements indicate that the company did not record any sales during the reported period. Administrative expenses amounted to Rs2.18 million during the nine months, while finance costs remained minimal at Rs1,868. Other income also dropped significantly to Rs14,227, compared with Rs20.23 million in the corresponding period of the previous year, contributing to the overall decline in profitability.

The company’s balance sheet showed total assets of Rs21.46 million as of March 31, 2026, down from Rs26.01 million at the end of June 2025. Cash and bank balances stood at Rs3.93 million, compared with Rs8.38 million at the beginning of the financial year, reflecting continued cash outflows.

Meanwhile, accumulated losses widened to Rs1.378 billion, further weakening the company’s equity position. Net cash used in operating activities during the nine-month period amounted to Rs3.42 million, while financing activities resulted in an additional cash outflow of Rs1.03 million.

The Board of Directors confirmed that no cash dividend, bonus shares, or right shares would be issued for the period under review, underscoring the company’s focus on managing its financial position amid ongoing operational challenges.