Chenab Limited Reports Rs519.7 Million Loss for FY2026, Narrows Annual Deficit

Chenab Limited has reported a net loss of Rs519.69 million for the financial year ended June 30, 2026, showing an improvement compared with the loss of Rs622.89 million recorded in the previous financial year.

According to the company’s financial results submitted to the Pakistan Stock Exchange (PSX), the company recorded earnings per share (EPS) of negative Rs4.52 for FY2026, compared with negative Rs5.42 in FY2025.

The company’s net sales declined to Rs1.949 billion during the year, against Rs2.389 billion in the preceding financial year. Meanwhile, the cost of sales stood at Rs2.014 billion, resulting in a gross loss of Rs65.04 million, compared with Rs80.27 million in FY2025.

Chenab Limited’s operating loss also narrowed to Rs405.38 million from Rs526.26 million a year earlier. Administrative expenses declined slightly to Rs312.41 million, while selling and distribution expenses dropped significantly to Rs27.93 million from Rs121.69 million.

The company reported other income of Rs104.91 million during FY2026, compared with Rs147.47 million in the previous year. Finance costs also decreased to Rs187.72 million from Rs211.49 million.

Despite improvements in its operating performance and overall loss, the company continued to face financial challenges, with its accumulated losses reaching approximately Rs9.14 billion at the end of June 2026.

On the cash flow front, Chenab Limited generated net cash of Rs93.77 million from operating activities during FY2026, compared with Rs153.35 million in the previous year. Its cash and bank balances increased to Rs184.49 million from Rs56.70 million.

The company’s total assets stood at Rs10.54 billion as of June 30, 2026, compared with Rs10.27 billion a year earlier. Long-term financing declined to Rs6.64 billion from Rs7.46 billion, while directors’ loans increased to Rs1.23 billion.

Dividend Announcement and Annual General Meeting

The company’s Board of Directors, in its meeting held on November 5, 2026, recommended no cash dividend, bonus shares, right shares or other entitlement for shareholders.

Chenab Limited has scheduled its Annual General Meeting (AGM) for November 26, 2026, at 12:00 noon at the company’s registered office in Nishatabad, Faisalabad.

The share transfer books will remain closed from November 19 to November 26, 2026, both days inclusive. The company also stated that its annual report would be transmitted through PUCARS at least 21 days before the AGM.

Overall, Chenab Limited’s FY2026 results indicate a reduction in annual losses and operating expenses, although declining sales and continued accumulated losses remain significant challenges for the company.