Karam Ceramics Limited has reported a net loss of Rs60.46 million for the first quarter ended September 30, 2026, compared to a loss of Rs26.54 million in the corresponding period last year, reflecting increased financial pressure amid lower sales and higher production costs.

According to the company’s financial results submitted to the Pakistan Stock Exchange (PSX), revenue declined significantly to Rs109.79 million during the quarter, compared to Rs160.69 million in the same period of the previous year, representing a decrease of approximately 31.7%.

The decline in revenue, coupled with production costs exceeding sales, resulted in a gross loss of Rs66.39 million, compared to a gross loss of Rs12.06 million in the corresponding quarter last year.

Operating Performance Under Pressure

The company’s operating loss increased to Rs70.49 million during the quarter, against Rs24.36 million recorded in the same period of the previous year.

Selling and distribution expenses declined to Rs995,704 from Rs4.15 million, while administrative expenses decreased to Rs3.11 million compared to Rs8.14 million in the corresponding period.

Despite lower operating expenses, the company continued to face significant pressure on its overall financial performance due to weaker revenue and elevated production costs.

Other Income Provides Partial Support

Karam Ceramics recorded other income of Rs11.40 million during the quarter, compared to Rs122,964 in the same period last year. This included an other income/settlement gain of Rs11.30 million and profit on deposit accounts of Rs100,762.

Finance costs also declined considerably to Rs2,070 from Rs297,845.

However, these gains were insufficient to offset the company’s operating losses. Consequently, its loss before taxation reached Rs60.46 million, compared to Rs26.54 million in the corresponding quarter last year.

Loss per share increased to Rs4.16, compared to Rs1.82 in the same period of the previous year.

Financial Position and Cash Flows

The company’s total assets stood at Rs1.82 billion as of September 30, 2026, compared to Rs1.94 billion at June 30, 2026.

Stock-in-trade declined to Rs132.24 million from Rs234.89 million, while cash and bank balances improved to Rs12.42 million from Rs9.75 million.

Total liabilities decreased to Rs607.26 million from Rs655.79 million at the end of June 2026.

The company’s cash flow statement showed net cash generated from operating activities of Rs4.68 million during the period, compared to net cash used in operations of Rs16.99 million in the corresponding period last year.

No Dividend Announced

The Board of Directors, in its meeting held on October 30, 2026, approved the company’s unaudited financial statements for the quarter ended September 30, 2026.

The board did not recommend any cash dividend, bonus shares or right shares for the period.

Outlook

Karam Ceramics’ latest financial results highlight the challenges facing the company, particularly declining revenue and production costs that remain higher than sales. Although the company recorded improvements in certain operating expenses and operating cash flows, its overall profitability remained under pressure.

The company’s future financial performance will depend on its ability to improve sales, manage manufacturing costs and strengthen operational efficiency. Investors will be watching upcoming quarterly results for signs of a recovery in revenue and gross margins.