Ittefaq Iron Industries Limited has reported a significant improvement in its financial performance for the year ended June 30, 2026, although the company remained in loss. According to the financial statements submitted to the Pakistan Stock Exchange, the company’s after-tax loss declined to Rs321.98 million, compared with a loss of Rs657.98 million in the previous year. 283761

The company’s revenue from contracts with customers stood at Rs2.40 billion during FY2026, down from Rs2.65 billion in FY2025. Despite the decline in revenue, the company substantially reduced its cost of sales to Rs2.50 billion, compared with Rs3.11 billion a year earlier. As a result, the gross loss narrowed considerably to Rs96.86 million, against a gross loss of Rs459.26 million in FY2025. 283761

Another positive development was the reduction in finance costs. The company’s finance cost fell to Rs53.70 million from Rs88.56 million in the previous year. However, administrative and general expenses increased to Rs113.37 million, while distribution and selling expenses remained broadly stable at Rs26.89 million. 283761

At the bottom line, Ittefaq Iron Industries recorded a loss before taxation of Rs321.27 million, compared with Rs699.80 million in FY2025. After taxation, the loss stood at Rs321.98 million, translating into a loss per share of Rs2.23, an improvement from the Rs4.56 loss per share reported for the preceding year. 283761

The company’s balance sheet also reflects changes during the year. Total equity declined to Rs3.17 billion at June 30, 2026, from Rs3.50 billion a year earlier, primarily reflecting the annual loss. Property, plant and equipment stood at approximately Rs2.13 billion, while current assets totaled about Rs3.33 billion. 283761

Cash generation remained positive from operating activities. The company generated Rs65.35 million in net cash from operating activities during FY2026, compared with Rs81.14 million in the previous year. However, financing activities resulted in a net cash outflow of approximately Rs94.98 million. Cash and cash equivalents consequently declined to Rs30.46 million at the end of the year from Rs59.13 million. 283761

The company’s comprehensive loss for FY2026 was Rs323.74 million, compared with Rs654.19 million in FY2025. The statement of changes in equity shows that the company’s accumulated unappropriated loss moved to approximately Rs259.81 million by June 30, 2026. 283761 283761

Meanwhile, the Board of Directors, at its September 29, 2026 meeting, recommended no final cash dividend, bonus shares or right shares for the year. 283761

Overall, Ittefaq Iron Industries’ FY2026 results show a substantial reduction in annual losses, supported by lower production costs and finance expenses. However, the company continues to face pressure from subdued revenue and operating expenses, and its return to profitability will depend on improving margins and strengthening overall operating performance.