Dynea Pakistan Limited Posts Quarterly Loss as Resin Division Sales Surge 68%

Dynea Pakistan Limited has reported an after-tax loss of Rs. 94.66 million for the first quarter ended September 30, 2026, compared with a profit of Rs. 191.21 million in the corresponding period last year, as challenging market conditions, rising costs and supply chain disruptions weighed on its financial performance.

According to the company’s financial results approved by its Board of Directors on October 23, 2026, revenue increased during the quarter, but higher operating expenses and financing costs significantly affected profitability.

Revenue Increases Despite Profitability Challenges

Dynea Pakistan recorded net turnover of Rs. 3.64 billion during the quarter, up approximately 9.3% from Rs. 3.33 billion in the same period last year. However, the cost of sales increased to Rs. 3.33 billion from Rs. 2.75 billion, reducing gross profit to Rs. 311.39 million compared with Rs. 577.14 million a year earlier.

The decline in gross profit reflects mounting pressure on the company’s margins despite higher sales revenue. Selling and distribution costs rose to Rs. 141.77 million, while administrative expenses increased to Rs. 127.32 million. The company also recorded an allowance for expected credit losses of Rs. 39.86 million.

Consequently, operating profit dropped sharply to Rs. 16.71 million from Rs. 354.71 million in the corresponding quarter of the previous year.

Higher Financing Costs Add to Pressure

The company’s financial performance was further affected by increased financing costs, which rose to Rs. 51.88 million from Rs. 8.18 million in the same period last year. Other charges amounted to Rs. 14 million.

Dynea Pakistan recorded a loss before taxation of Rs. 49.18 million, compared with a pre-tax profit of Rs. 318.83 million a year earlier. After accounting for taxation of Rs. 45.49 million, the company posted an after-tax loss of Rs. 94.66 million.

Basic and diluted earnings per share also declined, moving from positive Rs. 10.13 to a loss of Rs. 5.02 per share.

Resin Division Delivers Strong Growth

Despite the overall decline in profitability, the company’s Resin Division demonstrated notable growth. Sales revenue from the division reached Rs. 1.53 billion, representing an increase of 68% compared with Rs. 910 million in the same period last year.

In contrast, the Moulding Compound Division recorded sales revenue of Rs. 2.11 billion, down 13% from Rs. 2.42 billion in the corresponding period.

The contrasting performance of the two divisions highlights the different market conditions affecting the company’s business segments.

Regional Uncertainty and Supply Chain Disruptions

In its directors’ report, Dynea Pakistan attributed the challenging operating environment to the Gulf regional conflict, supply chain disruptions, intense price competition and transport strikes in the northern region.

The company stated that conditions remained difficult following a challenging May–August period, although September showed some recovery.

Regional uncertainty has also affected energy markets, including petroleum products, oil and gas. Disrupted cross-border trade routes and higher raw material, logistics and input costs have added further pressure. The company also noted that the closure of the Afghanistan border had affected its exports.

Future Outlook

Dynea Pakistan said it continues to focus on securing key raw materials to maintain uninterrupted supplies to customers. The company is also working to strengthen its market position and expand its local and regional presence.

Management expressed confidence in the company’s long-term prospects, citing its leadership, committed workforce and customer relationships. However, volatile raw material prices, regional instability and cost pressures remain important challenges for the business.

No Dividend or Bonus Shares Announced

The board did not recommend a cash dividend, bonus shares, right shares or any other entitlement for the quarter ended September 30, 2026.

The company acknowledged the continued support of its employees, shareholders, customers, financial institutions and other stakeholders during a difficult operating period.

Dynea Pakistan’s first-quarter results underline the pressure that rising costs and an uncertain regional environment can place on corporate earnings, even when revenue continues to grow. The company’s ability to manage expenses, protect margins and sustain growth in its stronger business segments will be important factors in its financial performance over the coming quarters.