Gammon Pakistan Limited has reported a significant improvement in its financial performance during the nine months ended March 31, 2026, although the company remained in a slight loss position after taxation.
According to the company’s unaudited interim financial statements, Gammon Pakistan recorded a profit before tax and levies of Rs5.13 million during the nine-month period, compared with a loss of Rs2.99 million in the corresponding period of the previous year. After accounting for taxation, however, the company posted a net loss of Rs633,118, substantially lower than the Rs8.09 million loss reported a year earlier.
The company’s operating performance remained under pressure. Gammon Pakistan reported a net contract loss of Rs860,390, while depreciation expenses stood at Rs2.85 million and administrative expenses reached Rs34.49 million. As a result, the company recorded an operating loss of Rs38.20 million during the nine months under review.
A key contributor to the improved bottom line was other income, which rose to Rs43.34 million, compared with Rs27.02 million in the same period last year. This helped offset the company’s operating loss and pushed its pre-tax result into positive territory. Finance costs remained negligible at Rs3,284.
The company’s financial position remained broadly stable. Total assets stood at Rs996.35 million as of March 31, 2026, compared with Rs996.86 million at June 30, 2025. Equity amounted to Rs784.52 million, while current liabilities stood at Rs192.06 million.
Gammon Pakistan also maintained a relatively strong accumulated profit position. Accumulated profit increased slightly to Rs377.00 million from Rs376.04 million at the end of June 2025, despite the reported period loss, following the accounting transfer related to the revaluation surplus on property, plant and equipment.
Cash generation also improved compared with the previous year. Net cash generated from operating activities before financial costs and taxes reached Rs8.27 million, while after financial costs and tax payments, net cash generated from operating activities stood at Rs445,874. This compared with a net operating cash outflow of Rs4.38 million in the corresponding period last year.
Despite the improvement, cash and bank balances remained modest at Rs1.40 million at the end of March 2026, down from Rs1.95 million at June 30, 2025. The company also recorded a net decrease of Rs545,959 in cash and cash equivalents during the nine-month period.
For the quarter ended March 31, 2026, Gammon Pakistan performed better than in the same quarter a year earlier. The company reported a profit before tax and levies of Rs3.09 million, compared with a loss of Rs2.38 million in the corresponding quarter of 2025. After tax, quarterly profit stood at Rs3.09 million, against a loss of Rs7.52 million previously.
Overall, the latest results indicate that Gammon Pakistan has made progress in reducing its losses and strengthening its pre-tax position, largely supported by higher other income. However, the company’s operating business continues to face pressure, highlighting the importance of improving core contract activity and maintaining sustainable sources of income going forward.
