Habib Rice Products Limited (HRPL) reported a net loss of Rs50.08 million for the nine-month period ended March 31, 2026, although the company managed to increase its sales compared with the same period last year.
According to the company’s unaudited financial results, turnover rose to Rs1.75 billion during the nine months ended March 31, 2026, compared with Rs1.69 billion in the corresponding period of 2025. However, higher costs continued to weigh on profitability. The company recorded a gross profit of Rs163.40 million, up from Rs158.96 million a year earlier.
Despite the improvement in gross profit, distribution costs stood at Rs73.74 million, while administrative expenses reached Rs106.92 million. Finance costs also increased to Rs10.68 million, compared with Rs6.64 million in the same period last year. As a result, the company posted a loss before levies and income tax of Rs28.52 million, compared with a loss of Rs55.23 million in the nine-month period of 2025.
After accounting for levies, the loss before income tax amounted to Rs50.08 million, compared with Rs75.97 million a year earlier. The company therefore reduced its net loss by around 39% year-on-year, from Rs82.32 million to Rs50.08 million. Loss per share improved to Rs1.25, compared with Rs2.06 in the corresponding period.
Third-quarter performance remains challenging
The quarterly figures show that pressure on profitability remained significant. During the quarter ended March 31, 2026, turnover declined to Rs517.93 million from Rs643.34 million in the same quarter of 2025.
Gross profit fell sharply to Rs21.30 million, compared with Rs80.34 million a year earlier. The company reported a quarterly loss before levies and income tax of Rs42.54 million, compared with a profit of Rs2.33 million in the same quarter last year. The quarterly net loss stood at Rs48.95 million, against Rs2.37 million previously.
Financial position and cash flows
The company’s total assets increased to Rs1.51 billion as of March 31, 2026, compared with Rs1.38 billion at June 30, 2025. Current assets stood at Rs866.36 million, while non-current assets amounted to Rs639.36 million.
However, cash flow remained under pressure. The company generated negative net cash of Rs156.81 million from operating activities during the nine months, compared with positive operating cash flow of Rs44.67 million in the same period of 2025. Investing activities also consumed Rs72.45 million. Financing activities provided Rs231.61 million, helping the company end the period with cash and cash equivalents of Rs13.50 million.
The balance sheet also shows higher financing obligations, with long-term secured financing increasing to Rs113.80 million from Rs38 million at June 30, 2025, while current liabilities reached Rs642.18 million.
Board fixes seven directors for upcoming election
Alongside the financial results, Habib Rice Products announced that its Board had resolved to convene an Extraordinary General Meeting for the election of directors. The meeting was scheduled for June 3, 2026, at the ICAP Auditorium Hall in Clifton, Karachi.
The Board fixed the number of directors to be elected at seven.
Overall, Habib Rice Products’ nine-month results show an improvement in the accumulated loss compared with last year, supported by higher sales and gross profit. However, the sharp deterioration in third-quarter performance and negative operating cash flow highlight continued pressure on the company’s profitability and liquidity.
