Khyber Tobacco Company Limited (PSX: KHTC) posted a strong turnaround in its third quarter of FY2026, returning to profitability despite reporting a net loss for the cumulative nine-month period ended March 31, 2026. The financial results were approved by the company’s Board of Directors in its meeting held on April 29, 2026.
For the quarter ended March 31, 2026, the company recorded a net profit of Rs475.11 million, compared to Rs552.32 million in the corresponding quarter of last year. Earnings per share (EPS) stood at Rs68.63, down from Rs79.79 in the same period last year.
During the quarter, net sales increased significantly to Rs2.72 billion, up from Rs2.36 billion a year earlier. Gross profit also improved to Rs710.68 million, reflecting healthy demand and effective cost management despite a challenging business environment.
However, on a cumulative basis, the company reported a net loss of Rs239.30 million for the nine months ended March 31, 2026, compared to a profit of Rs425.27 million in the same period of the previous fiscal year. The loss translated into a negative EPS of Rs34.57, versus a positive EPS of Rs61.43 last year. The decline was primarily driven by higher operating expenses and increased finance costs during the earlier part of the fiscal year.
Revenue for the nine-month period stood at Rs7.40 billion, lower than Rs8.85 billion reported in the corresponding period last year. Gross profit also declined to Rs713.55 million from Rs1.36 billion, highlighting pressure on margins amid rising costs and lower sales volumes.
The company’s balance sheet remained relatively strong, with total assets increasing to Rs21.11 billion as of March 31, 2026, compared with Rs16.72 billion at the end of June 2025. Shareholders’ equity also improved to approximately Rs2.70 billion, supported by retained earnings despite the cumulative loss.
The Board of Directors did not recommend any cash dividend, bonus shares, rights issue, or any other corporate action along with the financial results.
Khyber Tobacco’s return to profitability in the third quarter offers a positive signal after a difficult start to the fiscal year. Sustaining this momentum in the final quarter will be crucial for the company as it seeks to strengthen earnings and improve shareholder value in an increasingly competitive market.
