Gatron (Industries) Limited reported a significant improvement in its financial performance during the nine months ended March 31, 2026, although the company remained in loss.

According to the company’s unaudited financial results submitted to the Pakistan Stock Exchange (PSX), consolidated sales rose to Rs22.11 billion during the nine-month period, compared with approximately Rs19.87 billion in the corresponding period of the previous year. The company’s board approved the financial statements at its meeting held on April 25, 2026.

The stronger sales translated into a notable improvement in gross profitability. Consolidated gross profit increased to Rs768.7 million, compared with around Rs352.9 million a year earlier. However, higher financial costs continued to weigh heavily on the bottom line.

Loss Declines Sharply

Gatron recorded a consolidated loss of Rs1.006 billion for the nine months ended March 31, 2026, compared with a loss of approximately Rs1.161 billion in the same period last year. Loss per share consequently improved to Rs9.25, compared with Rs10.69 previously.

The latest quarter also showed an improvement. For January to March 2026, consolidated sales stood at Rs8.58 billion, up from Rs6.36 billion in the same quarter last year. Gross profit increased to Rs415.1 million, compared with Rs277.1 million previously.

Operating profit for the quarter reached Rs247.1 million, compared with just Rs9.1 million in the corresponding period of 2025. Nevertheless, finance costs climbed to Rs345.1 million, resulting in a quarterly loss of Rs204.7 million, although this was substantially lower than the Rs350.2 million loss recorded a year earlier.

Finance Costs Remain a Key Challenge

The company’s financial statements indicate that finance costs remain one of the biggest pressures on profitability. Consolidated finance costs reached Rs1.01 billion during the nine-month period, compared with around Rs1.20 billion in the corresponding period last year.

Despite the reduction in finance costs, Gatron continued to report a loss before levies and income tax of Rs740.6 million. After levies, the loss before income tax stood at Rs1.016 billion.

Cash Flow Improves

Gatron also generated stronger cash flows from operations during the period. Consolidated net cash flows from operating activities amounted to approximately Rs2.88 billion, compared with around Rs770 million in the same period of the previous year.

The company invested approximately Rs969.1 million in property, plant and equipment during the nine months, while net cash used in investing activities stood at about Rs914.7 million.

However, financing activities resulted in a net cash outflow of roughly Rs481 million. As a result, consolidated cash and cash equivalents at the end of March stood at approximately Rs4.02 billion negative, largely reflecting short-term borrowings in the cash position.

No Dividend Declared

For the period under review, Gatron’s board recommended no cash dividend, bonus shares or right shares. The company stated that its unaudited financial statements for the nine months ended March 31, 2026 were being transmitted to the PSX through PUCARS.

Overall, Gatron’s latest results point to an improving operating picture, with stronger sales, a substantial recovery in gross profit and a narrower loss. However, the company continues to face pressure from finance costs and levies, meaning a sustained improvement in profitability will depend on stronger operating margins and better control over financing-related expenses.