Redco Textiles Reports Rs99.22 Million Loss in First Quarter of FY2026-27
Redco Textiles Limited has reported a net loss of Rs99.22 million for the quarter ended September 30, 2026, compared with a net profit of Rs53.28 million recorded in the corresponding period last year, reflecting a significant decline in the company’s financial performance.
According to the company’s financial results submitted to the Pakistan Stock Exchange (PSX), net sales fell to Rs179.21 million during the quarter, down from Rs418.54 million in the same period of the previous year.
The decline in revenue, coupled with a shift from gross profit to gross loss, placed considerable pressure on the company’s profitability. Redco Textiles recorded a gross loss of Rs55.55 million, compared with a gross profit of Rs93.85 million in the corresponding quarter last year.
The company’s operating performance also weakened significantly. Operating expenses increased to Rs87.14 million from Rs9.42 million a year earlier. Consequently, the company posted an operating loss of Rs142.70 million, against an operating profit of Rs84.43 million in the same period last year.
Loss before taxation stood at Rs144.01 million, compared with a profit before taxation of Rs69.90 million in the corresponding quarter of the previous year. After accounting for taxation of Rs44.78 million, the company’s net loss reached Rs99.22 million.
Earnings per share (EPS) also turned negative at Rs2.0130, compared with positive earnings of Rs1.0809 per share in the same quarter last year.
Financial Position and Cash Flows
The company’s balance sheet showed total assets of approximately Rs3.92 billion as of September 30, 2026, compared with Rs4.10 billion at June 30, 2026.
Current assets increased to Rs1.08 billion from Rs982.98 million, while non-current assets declined to Rs2.84 billion from Rs3.11 billion.
Total equity stood at Rs1.07 billion, compared with Rs1.17 billion at the end of the previous financial year. Current liabilities remained substantial at Rs2.65 billion.
Cash flow figures also reflected pressure on the company’s operations. Net cash used in operating activities amounted to Rs415.09 million during the quarter, compared with Rs83.71 million in the corresponding period last year.
Meanwhile, net cash generated from investing activities reached Rs244.93 million, mainly due to capital work in progress. Cash and cash equivalents stood at Rs89.89 million at the end of September 2026.
No Dividend Announced
In its notification to the Pakistan Stock Exchange, the company informed investors that its board of directors had not recommended any cash dividend, bonus shares, right shares or other entitlement for the quarter ended September 30, 2026.
The latest results highlight a challenging quarter for Redco Textiles, with lower sales, higher operating expenses and negative operating cash flows contributing to the company’s return to losses. Investors will be monitoring the company’s upcoming financial performance for signs of operational improvement and a recovery in profitability.
