Lahore: Ibrahim Fibres Limited reported a loss after tax of Rs320.19 million for the quarter ended March 31, 2026, compared with a profit of Rs1.08 billion in the same period last year, according to the company’s unaudited financial statements.
The company’s net sales increased to Rs28.89 billion during the quarter from Rs27.72 billion a year earlier. However, the higher sales did not translate into stronger profitability as the cost of goods sold rose substantially, reducing gross profit to Rs1.33 billion, compared with Rs3.09 billion in the corresponding quarter of 2025.
Ibrahim Fibres also recorded finance costs of Rs443.06 million, up from Rs286.92 million a year earlier. Other operating expenses stood at Rs14.77 million, compared with Rs554.24 million in the same quarter last year, while administrative expenses rose to Rs648.56 million from Rs617.08 million.
After accounting for other income of Rs8.70 million, the company posted a profit before levy and taxation of Rs53.67 million. However, a levy of Rs266.19 million pushed the company into a loss before taxation of Rs212.51 million. After a tax provision of Rs107.67 million, the company reported a net loss of Rs320.19 million.
The earnings figures mark a significant deterioration from the first quarter of 2025, when Ibrahim Fibres reported a profit before tax of Rs1.47 billion and net profit of Rs1.08 billion. Basic and diluted earnings per share consequently declined to a loss of Rs1.03, compared with earnings per share of Rs3.47 in the previous year’s quarter.
Cash flow remains positive
Despite the quarterly loss, the company generated Rs4.58 billion in net cash from operating activities, substantially higher than Rs2.54 billion recorded in the same quarter of 2025. Cash generated from operations increased to Rs6.39 billion from Rs3.42 billion.
Ibrahim Fibres used Rs528.24 million in investing activities during the quarter, including spending on property, plant and equipment and intangible assets. Financing activities consumed a further Rs139.04 million, primarily due to repayment of long-term financing.
The company’s financial position also showed total assets of approximately Rs71.31 billion at March 31, 2026, while net worth stood at Rs57.40 billion, compared with Rs57.72 billion at December 31, 2025.
Overall, Ibrahim Fibres entered the March quarter with higher sales and strong operating cash generation, but significantly weaker gross profitability, higher finance costs and the levy charge resulted in a substantial year-on-year decline in earnings.
