KARACHI: Roshan Packages Limited (PSX: ROSHAN) posted a sharp decline in profitability for the nine months ended March 31, 2026, despite recording healthy growth in revenue, as rising costs and higher taxation weighed on the company’s bottom line. The company announced its financial results following a Board of Directors meeting held on April 28, 2026. No cash dividend, bonus shares, or right shares were declared.
According to the company’s unconsolidated financial statements, net revenue increased to Rs8.17 billion during the nine-month period, compared with Rs7.05 billion in the corresponding period last year, reflecting improved sales performance. However, the increase in revenue was overshadowed by a significant rise in the cost of revenue, resulting in gross profit declining to Rs575.3 million from Rs614.0 million a year earlier.
Operating profit also weakened, falling to Rs248.9 million from Rs319.8 million in the same period last year. Although the company benefited from higher other income of Rs61.1 million, increased finance costs and the impact of minimum tax differential continued to pressure earnings.
As a result, Roshan Packages reported a profit after tax of Rs49.3 million, a steep 66.9% decline from Rs147.0 million recorded in the corresponding period of the previous year. Earnings per share (EPS) also dropped significantly to Rs0.35, compared with Rs1.04 in the same period last year.
For the third quarter alone, the company earned Rs38.7 million, down from Rs73.2 million in the corresponding quarter last year, with quarterly EPS falling to Rs0.27 from Rs0.52.
On the financial position front, total assets increased to approximately Rs13.07 billion as of March 31, 2026, compared with Rs12.16 billion at the end of June 2025. The increase was primarily driven by higher trade receivables, advances, short-term investments, and inventories. Meanwhile, total equity improved modestly to Rs7.75 billion, supported by retained earnings despite weaker profitability.
The company’s cash flow statement showed that operating activities consumed cash during the period, while investment in property, plant and equipment remained significant, highlighting Roshan Packages’ continued focus on capacity and operational development despite short-term earnings pressure.
Management did not announce any shareholder payout, opting to retain earnings as the company navigates a challenging cost environment and continues investing in its operations. Investors will likely monitor future quarters to assess whether improving sales can translate into stronger margins and profitability.
