Karachi: Dadex Eternit Limited has reported an improved financial performance for the nine months ended March 31, 2026, narrowing its net loss despite continued operational challenges. The company’s latest financial results were approved by its Board of Directors on April 28, 2026, with no cash dividend, bonus shares, or right shares announced.

The company posted a net loss of Rs. 175.63 million during the nine-month period, compared with a loss of Rs. 259.83 million recorded in the corresponding period last year. This represents an improvement of nearly 32% year-on-year, reflecting stronger operational performance and lower finance costs. Earnings per share (EPS) also improved to a loss of Rs. 16.32 per share, compared with a loss of Rs. 24.14 per share a year earlier.

Dadex Eternit’s net sales increased to Rs. 713.24 million, up from Rs. 618.08 million in the same period last year, demonstrating healthy demand for the company’s products. However, higher production costs continued to weigh on profitability, resulting in a gross loss of Rs. 24.56 million, compared with a gross profit of Rs. 12.63 million in the previous year’s corresponding period.

Despite pressure on gross margins, the company significantly reduced its operating loss to Rs. 96.52 million from Rs. 145.13 million last year. Finance costs also declined sharply to Rs. 56.19 million, compared with Rs. 95.30 million previously, providing further support to the bottom line.

On the balance sheet, Dadex Eternit reported total assets of Rs. 4.0 billion as of March 31, 2026, compared with Rs. 2.87 billion at the end of June 2025. Cash and bank balances rose substantially to Rs. 682.32 million, strengthening the company’s liquidity position during the period. Shareholders’ equity stood at Rs. 259.18 million, while accumulated losses increased to Rs. 1.67 billion.

The company also generated net cash from operating activities of Rs. 1.27 billion, a notable turnaround from the cash outflow recorded in the corresponding period last year, reflecting improved working capital management.

While Dadex Eternit remains in a loss-making position, the improvement in earnings, stronger sales growth, reduced finance costs, and enhanced cash generation indicate that the company is making progress toward financial stabilization. Investors will be watching closely to see whether these positive trends continue in the final quarter of FY2026.