Crescent Fibres Limited has returned to profitability in the first quarter of FY2026-27, reporting a net profit of Rs6.06 million for the quarter ended September 30, 2026, compared with a net loss of Rs77.90 million in the corresponding period last year.
According to the company’s latest unaudited financial statements submitted to the Pakistan Stock Exchange (PSX), the improvement reflects stronger sales, a recovery in gross profitability, higher other operating income and lower financial charges.
The company’s net sales increased by approximately 16% to Rs1.17 billion during the quarter, compared with Rs1.01 billion recorded in the same period last year. This growth in revenue was accompanied by a significant improvement in gross profit, which reached Rs49.98 million against a gross loss of Rs7.96 million in the corresponding quarter of 2025.
Crescent Fibres also reported an operating profit of Rs49.82 million, reversing an operating loss of Rs37.64 million recorded a year earlier. Other operating income increased substantially to Rs56.86 million from Rs18.50 million, contributing to the improved operating performance.
Financial charges declined to Rs28.97 million from Rs37.15 million in the same period last year, providing additional support to the company’s bottom line. Consequently, profit before taxation and levy stood at Rs20.86 million, compared with a loss of Rs74.79 million in the previous year’s corresponding quarter.
After accounting for a levy of Rs14.80 million, the company reported profit before taxation of Rs6.06 million. With no taxation expense recorded for the quarter, net profit also stood at Rs6.06 million. Earnings per share improved to Rs0.49 against a loss per share of Rs6.27 in the corresponding period last year.
Financial Position and Cash Flows
As of September 30, 2026, Crescent Fibres reported total assets of approximately Rs5.90 billion, compared with Rs6.09 billion at June 30, 2026. Shareholders’ equity stood at Rs3.61 billion, while total current and non-current liabilities amounted to approximately Rs2.30 billion.
The company’s cash and bank balances increased to Rs32.98 million from Rs20.72 million at the end of June 2026. However, cash flows from operating activities remained negative, with a net cash outflow of Rs92.22 million during the quarter, compared with an outflow of Rs75.42 million in the corresponding period last year.
Investing activities generated a net cash inflow of Rs123.93 million, largely supported by proceeds of Rs144.34 million from the disposal of operating fixed assets. Meanwhile, financing activities recorded a net cash outflow of Rs19.45 million.
No Dividend Announced
In its October 29, 2026 board meeting, held in Lahore through a video link, the company’s directors recommended no cash dividend, bonus shares or right shares for the quarter ended September 30, 2026.
Overall, Crescent Fibres’ latest results indicate a notable turnaround in profitability, supported by revenue growth, improved gross margins and reduced financial charges. However, the continued negative operating cash flow remains an important area to monitor in the coming quarters.
The company’s ability to sustain its improved earnings performance, strengthen cash generation and manage its financial obligations will be important factors in determining its future financial outlook.
