KARACHI: Ittefaq Iron Industries Limited (PSX: ITTEFAQ) reported a reduced net loss for the nine months ended March 31, 2026, as the company managed to narrow its losses despite a challenging business environment marked by lower sales and continued pressure on margins. The financial results were approved by the company’s Board of Directors on April 27, 2026.
The company posted a net loss after tax of Rs267.43 million during the nine-month period, compared with a loss of Rs366.51 million recorded in the corresponding period last year. As a result, the loss per share improved to Rs1.85, from Rs2.54 a year earlier.
Net sales declined significantly to Rs1.63 billion, down from Rs2.26 billion in the same period last year. The decrease in revenue reflected continued weakness in market demand and pricing pressures faced by Pakistan’s steel sector. Gross loss stood at Rs107.50 million, compared with a gross loss of Rs132.54 million in the corresponding period of FY2025, indicating a modest improvement in production efficiency.
Other income amounted to Rs10.52 million, while finance costs decreased to Rs25.33 million from Rs37.83 million in the previous year. Distribution and marketing expenses also fell sharply, helping partially offset the decline in revenue. Administrative expenses remained broadly stable during the period.
The company’s total assets increased to approximately Rs5.41 billion as of March 31, 2026, compared with Rs5.37 billion at the end of June 2025. Inventories rose substantially to Rs1.30 billion, while trade receivables declined to Rs908.21 million, reflecting changes in working capital management. Cash and bank balances improved to Rs65.97 million from Rs59.13 million at the beginning of the financial year.
On the liabilities side, short-term borrowings remained largely unchanged at Rs1.06 billion, while long-term financing declined to Rs190.64 million, indicating continued debt repayments during the period. Shareholders’ equity decreased to Rs3.23 billion, mainly due to accumulated losses.
The Board of Directors did not recommend any cash dividend, bonus shares, or right shares for the period under review.
Despite continued losses, the improvement in earnings compared with the previous year suggests that Ittefaq Iron Industries has made progress in controlling costs and reducing financial pressures. However, sustained recovery will depend on improved demand in Pakistan’s steel sector, higher capacity utilization, and a stronger construction market in the coming quarters.
