Rupali Polyester Narrows Annual Loss as Financial Performance Shows Improvement in FY2026

Rupali Polyester Limited has reported a substantial improvement in its financial performance for the year ended June 30, 2026, with the company’s annual loss declining sharply compared with the previous year. The company’s financial statements show that while operating conditions remained challenging, lower losses and significant other income helped improve the overall result.

According to the company’s financial statements, net sales stood at Rs. 3.80 billion during FY2026, compared with Rs. 6.16 billion in FY2025. The decline in sales was accompanied by a gross loss of Rs. 310.34 million, although this was considerably lower than the Rs. 1.08 billion gross loss recorded a year earlier. 284143

Loss Declines Significantly

One of the key highlights of Rupali Polyester’s FY2026 results was the reduction in its bottom-line loss. The company posted a loss after tax of Rs. 188.0 million, compared with a much larger Rs. 1.53 billion loss in FY2025. Loss per share also improved considerably, falling to Rs. 5.52 per share from Rs. 44.80 per share previously. 284143

The improvement was supported by a substantial increase in other income. Other income rose to Rs. 767.63 million from Rs. 190.01 million in the preceding year. The financial statements also show a gain of approximately Rs. 506.94 million from the disposal of property, plant and equipment, which contributed significantly to the year’s results. 284143

Asset Position Remains Substantial

Rupali Polyester’s total assets stood at approximately Rs. 11.84 billion as of June 30, 2026, compared with Rs. 12.01 billion a year earlier. Non-current assets amounted to around Rs. 9.14 billion, while current assets were approximately Rs. 2.70 billion. 284143

The company maintained property, plant and equipment of approximately Rs. 7.61 billion, while investment properties were valued at Rs. 862.5 million. However, cash and bank balances declined to only Rs. 36.19 million, compared with Rs. 138.42 million at the end of FY2025. 284143

Borrowings and Equity

The company’s equity and reserves stood at approximately Rs. 5.72 billion at the end of FY2026, down from Rs. 5.90 billion a year earlier. Accumulated losses increased to approximately Rs. 2.84 billion, compared with Rs. 2.66 billion previously. 284143

Short-term borrowings increased to around Rs. 3.56 billion from Rs. 2.49 billion, while the long-term loan declined to approximately Rs. 1.10 billion from Rs. 1.22 billion. This indicates that the company continued to rely significantly on short-term financing during the year. 284143

Cash Flow Remains a Challenge

Despite the improvement in reported earnings, cash flow remained an area of concern. Rupali Polyester recorded net cash outflow from operating activities of Rs. 1.21 billion during FY2026, compared with an outflow of Rs. 803.13 million in FY2025. 284143

The company generated Rs. 523.50 million from investing activities, mainly supported by proceeds from the disposal of property, plant and equipment. Financing activities generated a net Rs. 582.05 million, including net short-term borrowings of approximately Rs. 1.07 billion. 284143

As a result, cash and cash equivalents fell from Rs. 138.42 million to Rs. 36.19 million during the year. 284143

Annual General Meeting Scheduled

The company has also announced that its Annual General Meeting will be held in Lahore on October 27, 2026, at 10:30 a.m. The share transfer books will remain closed from October 22 through October 27, 2026. The company has stated that no cash dividend, bonus shares or right shares have been recommended for the year. 284143

Overall, Rupali Polyester’s FY2026 results present a mixed picture. The sharp reduction in the annual loss represents a meaningful improvement from the previous year, while the decline in sales, negative operating cash flow, lower cash balances and increased short-term borrowings remain important factors for investors to watch. The company’s future performance will depend on its ability to improve core operations, strengthen cash generation and reduce reliance on short-term financing.