Karam Ceramics Limited has reported a net loss of Rs66.67 million for the first quarter ended September 30, 2026, compared with a loss of Rs26.54 million in the corresponding period last year, reflecting increased financial pressure on the company.

According to the company’s unaudited financial results submitted to the Pakistan Stock Exchange (PSX), revenue declined to Rs109.79 million during the quarter, down from Rs160.69 million recorded in the same period of the previous year. This represents a decrease of approximately 31.7% in quarterly revenue.

The company’s cost of sales stood at Rs182.39 million, exceeding revenue and resulting in a gross loss of Rs72.59 million. In comparison, Karam Ceramics reported a gross loss of Rs12.06 million in the corresponding quarter of the previous year.

The increase in gross loss significantly affected the company’s overall financial performance. Its operating loss reached Rs76.70 million, compared with Rs24.36 million in the same period last year.

Other income provided some support to the company’s results, amounting to Rs11.40 million during the quarter, compared with Rs122,964 in the corresponding period. Finance costs remained relatively low at Rs2,070, while the company recorded a levy expense of Rs1.37 million.

After accounting for these items, the company reported a loss before taxation of Rs66.67 million. Its basic and diluted loss per share stood at Rs4.16, compared with Rs1.82 in the same quarter last year.

Financial Position and Assets

Karam Ceramics’ total assets stood at Rs1.82 billion as of September 30, 2026, compared with Rs1.94 billion at June 30, 2026.

Non-current assets amounted to approximately Rs1.59 billion, while current assets were recorded at Rs223.20 million. The company’s stock-in-trade declined to Rs132.24 million from Rs234.89 million at the end of June 2026.

Cash and bank balances increased to Rs12.42 million from Rs9.75 million, indicating an improvement in the company’s cash position compared with the previous financial year-end.

Total liabilities decreased to Rs607.26 million from Rs655.79 million at June 30, 2026. Trade and other payables declined to Rs283.83 million, while short-term borrowings remained unchanged at Rs116.50 million.

The company’s equity and reserves stood at Rs1.21 billion, including accumulated losses of approximately Rs1.71 billion.

Cash Flow Performance

The company’s cash flow statement showed net cash generated from operating activities of Rs4.68 million during the reported period, compared with net cash used in operating activities of Rs16.99 million in the corresponding period of the previous year.

Cash and cash equivalents increased by Rs2.68 million during the period, taking the closing balance to Rs12.42 million.

This improvement in operating cash flow provides a positive element in an otherwise challenging quarterly financial performance.

No Dividend Announced

The Board of Directors of Karam Ceramics Limited, in its meeting held on October 30, 2026, approved the company’s unaudited financial statements for the quarter ended September 30, 2026.

The board did not recommend any cash dividend, bonus shares or right shares for shareholders.

Outlook

Karam Ceramics’ first-quarter results highlight the financial challenges facing the company, particularly declining revenue and a substantial increase in gross loss. The company’s ability to improve sales, manage production costs and strengthen its operating performance will be important factors in its financial recovery.

Investors will likely monitor upcoming financial results to assess whether the company can improve its revenue performance and reduce operating losses in the remaining quarters of the financial year.

The latest results provide shareholders with an updated picture of the company’s financial position and underline the importance of improved operational efficiency and sustainable business performance.