KARACHI: Dadex Eternit Limited reported a notable improvement in its financial performance for the nine months ended March 31, 2026, as the company’s net loss narrowed by more than 32% compared to the same period last year. The improvement came despite continued pressure on production costs that pushed the company into a gross loss.

According to the company’s latest financial statements, net sales rose 15.4% year-on-year to Rs. 713.24 million, up from Rs. 618.08 million in the corresponding period of last year. However, higher manufacturing costs resulted in a gross loss of Rs. 24.56 million, compared with a gross profit of Rs. 12.63 million a year earlier.

Despite the challenging cost environment, Dadex succeeded in reducing its operating loss through tighter expense management. Operating loss declined 33.5% to Rs. 96.52 million, compared with Rs. 145.13 million in the same period last year.

The company also benefited from a significant reduction in finance costs, which fell 41% to Rs. 56.19 million, while other operating income increased to Rs. 115.14 million, providing additional support to the bottom line.

As a result, net loss after tax declined to Rs. 175.63 million, compared with Rs. 259.83 million in the corresponding period of FY2025. Loss per share also improved to Rs. 16.32, versus Rs. 24.14 a year earlier.

The board noted that although elevated production costs continued to weigh on gross margins, the company achieved meaningful gains through cost rationalization. Administrative expenses fell by over 20%, while other operating expenses dropped by more than 83%, reflecting management’s focus on improving operational efficiency.

During the period, Dadex also entered into an agreement to sell its head office building and received a partial advance payment, a move expected to strengthen the company’s financial position once the transaction is completed, subject to regulatory and procedural requirements.

Looking ahead, the management said it remains committed to further optimizing costs, improving operational performance, and strengthening profit margins to achieve sustainable profitability. The board also acknowledged the continued support of shareholders, customers, and employees during the period.