Gharibwal Cement Limited Reports Rs9.07 Million Profit in First Quarter of FY2026-27
Gharibwal Cement Limited (GCL) has reported a significant decline in profitability for the first quarter ended September 30, 2026, according to its unaudited financial results submitted to the Pakistan Stock Exchange (PSX).
The company posted a profit after tax of Rs9.07 million for the quarter, compared with Rs277.58 million in the corresponding period last year. This represents a substantial year-on-year decline in earnings, reflecting pressure on the company’s overall financial performance.
Revenue and Gross Profit Decline
Gharibwal Cement recorded net sales of approximately Rs3.85 billion during the quarter, down from Rs4.93 billion in the same period last year. The decline in sales was accompanied by a reduction in gross profit, which fell to Rs298.97 million from Rs653.35 million.
The company’s cost of sales stood at approximately Rs3.55 billion during the quarter, compared with Rs4.27 billion in the corresponding period of the previous year. Despite lower costs, the reduction in revenue and gross profit affected overall profitability.
Profit Before Tax Falls Significantly
The company’s profit before tax declined to Rs153.54 million from Rs447.71 million in the previous year’s corresponding quarter.
Finance income increased to Rs158.02 million from Rs84.49 million, providing some support to earnings. However, this improvement was insufficient to offset the decline in operating performance. Finance expenses remained relatively stable at Rs39.34 million, compared with Rs34.66 million a year earlier.
After accounting for tax expenses of Rs144.47 million, Gharibwal Cement reported a net profit of Rs9.07 million. Earnings per share also declined significantly to Rs0.02 from Rs0.69 in the same quarter last year.
Financial Position and Cash Flows
According to the company’s interim financial statements, total assets increased to approximately Rs46.39 billion as of September 30, 2026, compared with Rs41.48 billion at June 30, 2026.
The company’s equity stood at approximately Rs31.48 billion, supported by retained earnings and a revaluation surplus on property, plant and equipment. The revaluation surplus increased to approximately Rs10.98 billion from Rs7.71 billion at the end of June 2026.
However, the cash flow statement showed a net cash outflow from operating activities of approximately Rs1.33 billion during the quarter, compared with a net inflow of Rs2.20 billion in the corresponding period last year. Cash and cash equivalents declined to approximately Rs1.42 billion by the end of September 2026.
No Dividend Announced
Gharibwal Cement’s board of directors, which met on October 23, 2026, recommended no cash dividend, bonus shares, or right shares for the quarter ended September 30, 2026. The company also reported no other entitlement or price-sensitive corporate action in its announcement.
The financial results were submitted to the Pakistan Stock Exchange, with the company stating that printed copies of the financial statements would be uploaded through the prescribed regulatory system and published on its website.
Outlook
Gharibwal Cement’s first-quarter results highlight the challenges reflected in its lower sales, reduced gross profit, and significantly smaller after-tax earnings. The decline in operating cash flow is another important financial indicator to watch in the coming quarters.
Investors and market participants will likely monitor the company’s upcoming results for signs of improvement in sales, margins, profitability, and cash generation. Future performance will depend on the company’s ability to strengthen its operating results and manage costs effectively.
