Punjab Oil Mills Reports Reduced Annual Loss of Rs23.43 Million for FY2026

Punjab Oil Mills Limited has reported a significant reduction in its annual net loss for the financial year ended June 30, 2026, reflecting an improvement in its operating performance despite continued financial and cost pressures.

According to the financial results submitted to the Pakistan Stock Exchange (PSX), the company recorded a net loss of Rs23.43 million during FY2026, compared with a net loss of Rs69.02 million in the previous financial year. Consequently, its loss per share improved to Rs3.02 from Rs8.89 reported in FY2025.

Revenue and Gross Profit Show Growth

Punjab Oil Mills recorded net sales of approximately Rs9.31 billion during FY2026, compared with Rs9.24 billion in the preceding year.

The company’s gross profit increased to Rs936.04 million from Rs885.08 million, indicating an improvement in its gross profitability. Meanwhile, the cost of sales stood at Rs8.37 billion during the year.

Selling and distribution expenses declined to Rs355.71 million from Rs415.70 million, while administrative expenses decreased to Rs273.74 million compared with Rs319.12 million in FY2025.

These reductions in operating expenses contributed to a notable improvement in operating profit, which increased to Rs306.59 million from Rs150.26 million in the previous year.

Higher Finance Costs and Taxation Affect Final Results

Despite improved operating performance, the company’s financial results remained under pressure from higher finance costs and taxation.

Finance costs increased to Rs147.65 million during FY2026, compared with Rs131.34 million in the previous financial year. Other operating expenses also increased to Rs115.94 million from Rs51.98 million.

The company reported profit before levy and taxation of Rs73.50 million, compared with Rs28.03 million in FY2025. However, after accounting for a levy of Rs22.74 million and income tax expense of Rs74.19 million, Punjab Oil Mills recorded a net loss of Rs23.43 million.

The previous year’s net loss stood at Rs69.02 million, showing that the company managed to narrow its annual losses considerably.

Financial Position and Cash Flows

According to the balance sheet, Punjab Oil Mills’ total assets increased to Rs5.62 billion as of June 30, 2026, compared with Rs4.81 billion a year earlier.

Shareholders’ equity stood at Rs2.55 billion, while total liabilities and equity amounted to Rs5.62 billion.

The company’s current liabilities increased during the year, with trade and other payables reaching Rs1.53 billion and short-term borrowings rising to Rs1.13 billion.

The cash flow statement showed net cash used in operating activities of approximately Rs399 million during FY2026, compared with net cash generated of Rs134.49 million in the previous year. Cash and cash equivalents at the end of the financial year stood at Rs65.12 million, down from Rs100.50 million.

No Dividend Announced

The Board of Directors, in its meeting held on November 6, 2026, approved the company’s financial results for the year ended June 30, 2026.

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

The company also announced that its Annual General Meeting (AGM) will be held on November 27, 2026, at 11:00 AM at its registered office located at Plot No. 26-28, Industrial Triangle, Kahuta Road, Islamabad.

The register of members and share transfer books will remain closed from November 20 to November 27, 2026, both days inclusive.

Outlook

Punjab Oil Mills’ FY2026 results highlight an improvement in its operating performance, supported by higher gross profit, lower distribution and administrative expenses, and a substantial reduction in its annual net loss.

However, higher finance costs, taxation and negative operating cash flows remain important financial challenges. The company’s ability to manage borrowing costs, strengthen cash generation and sustain improvements in profitability will be important factors in its future financial performance.

Investors will be watching the company’s upcoming financial performance to assess whether the improvement achieved during FY2026 can translate into sustainable profitability.