Punjab Oil Mills Reports Rs141.23 Million Loss in First Quarter of FY2026-27
Punjab Oil Mills Limited has reported a net loss of Rs141.23 million for the first quarter ended September 30, 2026, compared with a net profit of Rs23.42 million in the corresponding period last year, reflecting a significant deterioration in its financial performance.
According to the company’s unaudited financial results submitted for the quarter, earnings per share (EPS) stood at a loss of Rs18.19, compared with earnings per share of Rs3.02 recorded in the same quarter of the previous financial year.
The company’s net sales declined substantially to Rs1.33 billion during the quarter, down from Rs2.61 billion in the corresponding period last year. This represents a decline of approximately 49%, indicating considerable pressure on the company’s sales performance.
The decline in revenue was accompanied by a sharp reduction in gross profit, which fell to Rs40.92 million from Rs275.30 million in the same period last year. Consequently, the company’s gross profit margin also came under significant pressure.
Punjab Oil Mills recorded an operating loss of Rs110.54 million during the quarter, compared with an operating profit of Rs85.49 million in the corresponding period last year.
The company’s expenses also remained a major challenge. Selling and distribution expenses stood at Rs93.54 million, while administrative expenses amounted to Rs57.93 million. Meanwhile, finance costs increased to Rs44.53 million from Rs26.11 million in the previous year’s corresponding quarter, adding further pressure to profitability.
The company reported a loss before taxation of Rs154.88 million, compared with a profit before taxation of Rs56.70 million in the same quarter last year. After accounting for income tax and levies of Rs13.65 million, the net loss reached Rs141.23 million.
Financial Position and Cash Flow
The company’s balance sheet also reflected changes in its financial position. Total assets stood at Rs4.97 billion as of September 30, 2026, compared with Rs5.62 billion as of June 30, 2026.
Total shareholders’ equity declined to Rs2.41 billion from Rs2.55 billion over the same period. Current assets stood at Rs2.54 billion, while current liabilities amounted to Rs2.41 billion.
Cash and bank balances decreased to Rs22.38 million at the end of September 2026, compared with Rs65.12 million at the end of June 2026.
The cash flow statement showed net cash used in operating activities of Rs78.56 million during the quarter. The company also reported net cash used in investing activities of Rs803,718, while financing activities generated net cash of Rs36.63 million.
Outlook
Punjab Oil Mills’ first-quarter results highlight significant challenges, particularly declining sales, lower gross profit and rising finance costs. The shift from profitability to a substantial quarterly loss raises concerns about the company’s near-term financial performance.
The company’s future performance will largely depend on its ability to improve sales, strengthen operating margins, manage production and administrative costs, and control financing expenses.
Investors will likely monitor upcoming quarterly results to assess whether Punjab Oil Mills can recover its profitability and improve its overall financial position.
