KARACHI: Cherat Packaging Limited (PSX: CPPL) reported a significant decline in profitability for the nine-month period ended March 31, 2026, despite posting healthy growth in revenue, reflecting the impact of higher costs, finance expenses, and taxation.
According to the company’s financial results, net sales increased to Rs11.07 billion during the nine months of FY2026, compared with Rs9.83 billion in the corresponding period last year, representing a year-on-year growth of nearly 13%. However, rising production costs continued to weigh on margins, with the cost of sales climbing to Rs10.19 billion from Rs8.94 billion.
As a result, gross profit remained broadly stable at Rs883.9 million, compared with Rs889.8 million a year earlier. Operating profit, however, dropped sharply to Rs489.5 million from Rs869.0 million, reflecting higher distribution, administrative and other operating expenses.
The company’s profit before tax declined to Rs213.4 million, down from Rs495.9 million in the same period last year, as finance costs remained elevated at Rs276.0 million. After accounting for taxation, Cherat Packaging posted a net profit of Rs114.8 million, compared with Rs397.6 million in the corresponding period of FY2025, marking a decline of approximately 71%. Earnings per share (EPS) fell to Rs2.34, compared with Rs8.10 a year earlier.
On a quarterly basis, the company earned Rs27.6 million during the quarter ended March 31, 2026, compared with Rs85.2 million in the same quarter last year. Quarterly EPS stood at Rs0.56, down from Rs1.74.
The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or any other corporate action along with the financial results.
The company’s financial position showed total assets rising to Rs17.39 billion as of March 31, 2026, from Rs15.62 billion at the end of June 2025, driven primarily by increased investment in property, plant and equipment and higher trade receivables. Meanwhile, total equity stood at Rs8.68 billion.
Despite achieving double-digit revenue growth, Cherat Packaging’s earnings remained under pressure from rising financing costs and a heavier tax burden, highlighting the challenging operating environment faced by manufacturing companies during the period.
