Pakistan PVC Reports Higher Quarterly Loss as Sales Decline in First Quarter of FY2027

Pakistan PVC Limited has reported a higher net loss for the first quarter ended September 30, 2026, as the company’s sales declined and operating expenses continued to weigh on its financial performance.

According to the company’s unaudited financial statements, Pakistan PVC recorded a net loss of Rs2.79 million for the quarter, compared with a loss of Rs1.70 million in the corresponding period last year. The loss per share also increased to Rs0.19 from Rs0.11, reflecting the deterioration in the company’s quarterly earnings.

The company’s net sales stood at Rs911,506 during the quarter, compared with Rs1.04 million in the same period of the previous year. This represents a decline of approximately 12.6 percent, indicating weaker sales performance.

The cost of sales amounted to Rs7.61 million, resulting in a gross loss of Rs6.69 million. This was slightly higher than the gross loss of Rs6.68 million recorded in the corresponding quarter of the previous year.

Other income remained a significant contributor to the company’s financial position, amounting to Rs8.96 million during the quarter, compared with Rs9.58 million a year earlier.

Meanwhile, distribution costs increased to Rs1.81 million from Rs1.73 million, while administrative expenses rose to Rs2.33 million from Rs1.95 million. Finance costs remained unchanged at Rs907,253.

Consequently, the company reported a loss before tax of Rs2.79 million, compared with Rs1.70 million in the corresponding quarter of the previous year.

Financial Position

Pakistan PVC’s balance sheet showed total current assets of approximately Rs16.79 million as of September 30, 2026, compared with Rs17.32 million at June 30, 2026. Current liabilities stood at Rs306.88 million, slightly higher than Rs306.08 million recorded at the end of the previous financial year.

The company’s accumulated losses increased to Rs430.70 million, while its total equity reflected a negative balance of approximately Rs47.93 million.

Cash Flow Performance

The company also faced pressure on its operating cash flows, reporting cash used in operating activities of Rs10.24 million during the quarter. However, investing activities generated net cash of Rs9.84 million, mainly supported by rental receipts.

Financing activities contributed a net cash inflow of Rs291,558. As a result, cash and cash equivalents stood at Rs415,731 at the end of September 2026.

Outlook

Pakistan PVC’s first-quarter results highlight continued financial challenges, including declining sales, persistent gross losses and increasing administrative expenses. Although other income provided support, it was not sufficient to prevent a higher net loss.

The company’s ability to improve its core business performance, strengthen sales and manage expenses will remain important factors in its financial recovery in the coming quarters.