KARACHI: Dewan Farooque Spinning Mills Limited (PSX: DFSM) reported a narrower net loss for the nine months ended March 31, 2026, despite continued pressure on sales and persistent operating challenges, according to the company’s latest financial results.
The company posted a net loss after taxation of Rs167.90 million for the nine-month period, an improvement from the Rs208.85 million loss recorded in the corresponding period last year. Consequently, the loss per share improved to Rs1.72, compared with Rs2.14 a year earlier.
Net sales increased to Rs168.28 million, up from Rs141.42 million in the same period last year. However, the cost of sales remained significantly higher than revenue at Rs360.96 million, resulting in a gross loss of Rs192.67 million, although this was lower than the gross loss of Rs217.02 million reported a year ago.
Operating expenses stood at approximately Rs16.99 million, compared with Rs8.75 million in the previous year’s corresponding period. The company also recorded other income of Rs1.92 million, while a reversal of provision for doubtful debts helped partially offset operating losses.
For the third quarter ended March 31, 2026, Dewan Farooque Spinning Mills reported a net loss of Rs31.81 million, improving from a quarterly loss of Rs55.56 million in the same quarter last year. Quarterly revenue declined to Rs56.21 million from Rs65.09 million, while the quarterly loss per share improved to Rs0.33 from Rs0.57.
The company’s financial position showed accumulated losses increasing to Rs2.20 billion as of March 31, 2026, compared with Rs2.14 billion at the end of June 2025. Total equity stood at Rs9.56 billion, while total assets amounted to Rs12.01 billion. Cash and bank balances improved to Rs14.10 million from Rs4.99 million at the beginning of the financial year.
The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or any other corporate action for the period under review.
While the company continues to operate under financial pressure, the reduction in net losses and improvement in earnings per share indicate a modest recovery compared with the same period last year. Investors will continue to monitor management’s efforts to strengthen revenue generation and improve operational efficiency in the coming quarters.
