Gatron (Industries) Limited reported a significant improvement in its financial performance for the nine-month period ended March 31, 2026, as the company benefited from anti-dumping measures, cost optimization initiatives, and stronger operational efficiency. Despite ongoing challenges in the polyester filament yarn (PFY) market, the company substantially reduced its losses while maintaining positive operating profitability.
According to the company’s directors’ report, net sales increased by 13% to Rs22.1 billion during the period, compared to Rs19.5 billion in the corresponding period last year. EBITDA stood at Rs1.83 billion, while operating profit reached Rs457 million. Most notably, the loss before levies and income tax declined by 66% to Rs552 million from Rs1.61 billion recorded in the same period of the previous year.
For the quarter ended March 2026, Gatron reported an operating profit of Rs359 million and a profit before levies and income tax of Rs18 million, reflecting continued momentum in its recovery efforts. The company’s net loss for the nine-month period narrowed to Rs827.5 million, compared to a loss of Rs1.85 billion in the corresponding period last year, while loss per share improved to Rs7.61 from Rs17.02.
Management attributed the improved performance to anti-dumping duties imposed on imported PFY from China, enhanced operational efficiency, and disciplined financial management. The company noted that effective enforcement of anti-dumping duties remains critical for restoring market balance and supporting domestic PFY manufacturers. Gatron emphasized that several countries, including Turkey, India, the United States, Vietnam, Brazil, and Mexico, have also implemented anti-dumping or countervailing measures against Chinese PFY imports.
To further strengthen profitability, Gatron is pursuing a range of cost-saving initiatives, including the expansion of solar and battery energy storage systems, investment in wind power, automation and AI-driven decision-making, and improvements in labor efficiency. These measures are aimed at reducing energy costs and enhancing overall competitiveness.
On the balance sheet side, the company reduced inventories by Rs720 million and short-term borrowings by Rs492 million during the period, reflecting improved working capital management. Trade debts also declined by Rs445 million, while trade creditors increased to support operational requirements.
In a separate development, Gatron’s board approved a proposed Scheme of Arrangement involving Nova Frontiers Limited (NFL) and Ghani & Tayub (Private) Limited (G&T). Under the proposed transaction, shares held by NFL and G&T in Gatron will be restructured through a share swap mechanism, subject to shareholder approvals and court sanction. The company stated that the scheme will have no impact on Gatron’s business operations or assets.
Looking ahead, management expects continued improvement in financial performance as anti-dumping enforcement, energy-saving investments, and operational optimization measures take effect. The company believes that a recovery in PFY prices, coupled with higher production utilization, could further strengthen profitability in the coming quarters.
