KARACHI: Dewan Automotive Engineering Limited (PSX: DWAE) has reported a wider net loss for the nine months ended March 31, 2026, reflecting the company’s continued operational challenges despite a slight improvement in its third-quarter performance. The financial results were approved by the Board of Directors in its meeting held on April 27, 2026.
According to the company’s unaudited financial statements, Dewan Automotive posted a net loss of Rs37.35 million during the first nine months of FY2026, compared with a loss of Rs35.38 million recorded in the corresponding period last year. The loss per share increased to Rs1.75, compared with Rs1.65 a year earlier.
For the third quarter ended March 31, 2026, the company reported a net loss of Rs12.20 million, slightly higher than the Rs11.74 million loss recorded in the same quarter of FY2025. However, the quarterly loss per share increased only marginally to Rs0.57 from Rs0.55.
The company did not generate any sales revenue during the reporting period. It continued to incur costs related to administrative expenses, finance charges, and other operating costs, which contributed to the ongoing losses. Finance costs remained a significant burden, while other income provided only limited support to offset operating losses.
Dewan Automotive’s financial position also remained under pressure. As of March 31, 2026, accumulated losses stood at more than Rs2.05 billion, while shareholders’ equity remained deeply negative. Current liabilities continued to exceed current assets, highlighting the company’s liquidity challenges.
The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or any other corporate action for the period under review.
The company’s cash flow statement showed a modest cash outflow from operating activities during the nine-month period, with cash and cash equivalents declining to Rs38,000 at the end of March 2026 from Rs130,000 at the beginning of the financial year.
Dewan Automotive Engineering continues to face significant financial and operational headwinds. Going forward, investors will closely monitor the company’s efforts to revive business operations, strengthen its balance sheet, and improve financial sustainability amid Pakistan’s evolving automotive market.
