Bolan Castings Limited Reports Strong Turnaround in First Quarter

Bolan Castings Limited has reported a significant improvement in its financial performance for the first quarter ended September 30, 2026, returning to profitability after recording a substantial loss in the corresponding period last year. The company’s latest unaudited financial statements show higher revenue, improved operating performance and stronger cash generation.

According to the company’s financial results, revenue from contracts with customers increased to Rs 385.13 million during the quarter, compared with Rs 292.87 million in the same period of 2025. This represents an increase of approximately 31.5%, reflecting improved sales performance during the reporting period.

Profitability Shows Significant Improvement

The company’s gross profit rose to Rs 57.56 million, compared with Rs 3.51 million in the corresponding quarter last year. The improvement indicates that Bolan Castings achieved a better gross profit outcome despite an increase in its cost of sales.

Operating profit reached Rs 17.76 million, compared with an operating loss of Rs 28.58 million in the same period last year. The turnaround reflects a substantial improvement in the company’s operating results.

After accounting for finance costs and income tax expenses, Bolan Castings recorded a net profit of Rs 9.81 million for the quarter. This compares with a net loss of Rs 36.84 million in the corresponding period of the previous year.

Earnings per share also improved, reaching Rs 0.86 compared with a loss per share of Rs 3.21 a year earlier.

Cash Flow Position Strengthens

The company’s cash flow statement also showed improvement. Net cash generated from operating activities increased to Rs 29.90 million during the quarter, compared with Rs 9.67 million in the corresponding period last year.

Cash and cash equivalents stood at Rs 107.17 million at September 30, 2026, up from Rs 100.54 million at June 30, 2026. The increase indicates that the company maintained a higher cash balance during the quarter.

However, cash flows from financing activities showed a net outflow of Rs 25 million, reflecting the repayment of short-term Islamic financing of Rs 60 million alongside new short-term Islamic financing of Rs 35 million.

Financial Position and Liabilities

Bolan Castings reported total assets of Rs 740.67 million at September 30, 2026, compared with Rs 781.67 million at June 30, 2026. Total liabilities declined to Rs 333.09 million from Rs 383.90 million over the same period.

Total equity increased to Rs 407.58 million from Rs 397.77 million at the end of June 2026, supported by the profit recorded during the quarter.

The financial statements also showed a reduction in trade and other payables, which stood at Rs 261.96 million at the end of September, compared with Rs 288.99 million at the close of the previous financial year.

Outlook

Bolan Castings’ first-quarter results reflect a notable recovery in revenue, operating performance and profitability. The return to positive earnings and improved operating cash flows provide encouraging signs following the losses reported in the same quarter last year.

Nevertheless, the company’s future performance will depend on its ability to sustain revenue growth, manage production costs, control expenses and maintain healthy cash flows. Investors will be watching subsequent quarterly results to determine whether the improvement can be maintained throughout the financial year.