Leiner Pak Gelatine Limited has announced its financial results for the nine months ended March 31, 2026, reporting a significant decline in profitability despite maintaining stable revenue growth. The Board of Directors approved the unaudited financial statements in its meeting held on April 30, 2026. No dividend, bonus shares, right shares, or any other entitlement for shareholders were announced.

According to the company’s financial statement, net sales increased slightly to Rs1.036 billion during the nine-month period, compared to Rs1.028 billion in the corresponding period last year. However, higher production and operating costs weighed heavily on earnings.

Gross profit dropped to Rs166.7 million from Rs192.6 million a year earlier. Finance costs also declined to Rs38.2 million, but the reduction was not sufficient to offset pressure from rising operating expenses and lower margins.

As a result, profit after taxation fell sharply to Rs5.12 million, compared with Rs11.78 million in the same period of FY2025, representing a decline of approximately 56.5%. Earnings per share (EPS) also decreased to Rs0.68, down from Rs1.57 in the corresponding period last year.

For the third quarter alone, the company posted a net profit of Rs1.27 million, compared with Rs1.69 million in the same quarter of the previous year. Quarterly EPS stood at Rs0.17, versus Rs0.23 last year.

On the balance sheet, Leiner Pak Gelatine’s total assets increased to Rs2.58 billion as of March 31, 2026, compared to Rs2.19 billion at the end of June 2025. Inventory levels rose considerably during the period, while trade payables also increased, reflecting higher working capital requirements. Cash and bank balances improved to Rs23.19 million, up from Rs10.44 million at the beginning of the financial year.

Despite the challenging earnings performance, the company maintained a solid equity base of Rs1.12 billion. Management did not recommend any cash dividend or corporate action, indicating a cautious approach as it navigates a period of margin pressure and higher operating costs.

Investors will likely monitor the company’s ability to improve profitability in the final quarter of FY2026 through better cost management, stronger operational efficiency, and sustained demand for its halal gelatine and allied products.