KARACHI: Leather Up Limited reported an improvement in its financial performance for the nine months ended March 31, 2026, reducing its net loss as stronger sales helped offset rising operating expenses and tax charges. The company’s latest unaudited financial statements show that while profitability remains under pressure, revenue growth marked a positive development during the period.
The company posted a net loss after tax of Rs. 943,843 for the nine-month period, compared with a loss of Rs. 1.62 million in the corresponding period last year, reflecting a year-on-year improvement of nearly 42%. Loss per share also improved to Rs. 0.16, from Rs. 0.27 a year earlier.
Revenue recorded a significant increase, with sales rising to Rs. 27.32 million from Rs. 11.69 million in the same period last year. Higher sales translated into a gross profit of Rs. 3.43 million, compared with Rs. 1.32 million previously, indicating improved business activity despite a challenging operating environment.
However, the company’s operating performance remained under pressure due to higher administrative and distribution expenses. Administrative costs stood at Rs. 3.39 million, while distribution expenses increased to Rs. 641,215, resulting in an operating loss of Rs. 594,553, although this was considerably lower than the Rs. 2.21 million operating loss reported in the corresponding period last year.
Leather Up also incurred minimum tax of Rs. 226,060, contributing to the overall loss for the period. During the third quarter alone, the company reported a net loss of Rs. 434,951, compared with a profit of Rs. 610,300 recorded in the same quarter of the previous year.
On the balance sheet, total assets increased to Rs. 24.15 million as of March 31, 2026, from Rs. 21.93 million at the end of June 2025. The increase was mainly driven by higher inventory levels, which rose to Rs. 11.51 million, while cash and bank balances stood at Rs. 1.66 million.
The company’s accumulated losses widened to Rs. 49.92 million, reducing total equity to Rs. 14.92 million from Rs. 15.87 million at the beginning of the financial year. Meanwhile, trade and other payables increased to Rs. 6.54 million, reflecting higher working capital requirements.
The financial results suggest that Leather Up has made progress in boosting revenue and narrowing its overall losses. However, sustained profitability will depend on the company’s ability to control operating expenses, strengthen margins, and improve cash generation in the coming quarters.
