KARACHI: Bawany Air Products Limited has reported a significant increase in its net loss for the nine-month period ended March 31, 2026, as higher finance costs and investment-related losses weighed on the company’s financial performance.

According to the company’s unaudited interim financial results, Bawany Air Products recorded a loss of Rs54.59 million for the nine months ended March 31, 2026, compared with a loss of Rs6.43 million in the same period of the previous year. The loss translated into a basic and diluted loss per share of Rs7.28, compared with Rs0.86 previously.

Investment losses weigh on performance

One of the major factors behind the deterioration was the company’s investment portfolio. During the nine-month period, Bawany Air Products recorded an unrealized net loss of Rs18.74 million on investments, while a further net loss of Rs26.97 million was recorded on the sale of investments.

Together, these investment-related losses significantly affected the company’s overall result. Dividend income remained minimal at just Rs1,073 during the period.

The company also reported finance costs of Rs6.84 million, compared with Rs810,903 in the corresponding period last year. Administrative expenses rose to Rs5.94 million from Rs4.92 million, adding further pressure to the bottom line.

Quarterly loss also widens

The company’s performance during the latest quarter was similarly weak. For the quarter ended March 31, 2026, Bawany Air Products posted a net loss of Rs14.29 million, compared with a loss of Rs1.35 million in the same quarter of 2025.

Quarterly loss per share stood at Rs1.90, against Rs0.18 a year earlier.

Financial position

The company’s total assets stood at approximately Rs3.24 billion as of March 31, 2026, compared with Rs3.18 billion at June 30, 2025.

Advances and other receivables remained the largest component of current assets at around Rs3.18 billion, while investments stood at Rs53.57 million. Cash and bank balances, however, declined to approximately Rs708,886, from Rs2.20 million at June 30, 2025.

On the liabilities side, the company reported a loan from an associated company of Rs70.55 million, compared with Rs11.60 million previously. Accrued and other liabilities stood at Rs53.34 million.

The company’s accumulated loss also increased considerably, reaching Rs158.87 million by March 31, 2026, compared with Rs104.28 million at June 30, 2025.

Cash flow improves from operations

Despite the reported loss, the company generated Rs12.08 million in net cash from operating activities during the nine-month period, compared with a cash outflow of Rs2.27 billion in the same period last year.

However, investing activities consumed approximately Rs72.37 million, mainly due to additions to short-term investments. Financing activities generated around Rs58.80 million, largely reflecting a loan from an associated company.

As a result, cash and cash equivalents stood at Rs708,886 at the end of March 2026, down from Rs2.20 million at the beginning of the period.

No dividend or bonus shares

In its April 22, 2026 notification to the Pakistan Stock Exchange, Bawany Air Products stated that the board recommended no cash dividend, no bonus shares and no right shares for the period. The company also reported no other price-sensitive information.

The latest results highlight the financial challenges facing Bawany Air Products, particularly the impact of investment losses and rising financing expenses. While operating cash flow showed improvement compared with the previous year, the substantial increase in accumulated losses and the weak quarterly result remain key areas for investors to watch.