Rupali Polyester Limited has significantly reduced its net loss for the nine months ended March 31, 2026, despite a sharp decline in sales, according to the company’s unaudited financial results.
The company reported a loss of Rs214.6 million for the nine-month period, compared with a loss of Rs1.025 billion in the corresponding period of the previous year. Earnings per share improved to negative Rs6.26, from negative Rs33.02 a year earlier.
Sales decline, gross loss improves
Rupali Polyester’s net sales fell substantially to Rs2.361 billion during the nine months, compared with Rs5.266 billion in the same period last year.
Despite the lower sales base, the company managed to reduce its gross loss to Rs287.5 million, from Rs593.4 million previously. The improvement indicates that the decline in revenue was accompanied by a relatively better gross margin position.
A major contributor to the improved bottom line was a sharp increase in other income, which rose to Rs614.8 million from just Rs102.9 million a year earlier.
Finance costs remain significant
Finance costs declined during the nine-month period, falling to Rs261.7 million from Rs349.7 million in the same period of 2025.
However, administrative expenses increased to Rs222.7 million, compared with Rs165.5 million a year earlier. Distribution costs also rose to Rs25.7 million from Rs20.5 million.
As a result, the company recorded a loss before taxation of Rs183.9 million, a substantial improvement from the Rs1.059 billion pre-tax loss reported in the previous year.
Fourth-quarter performance also improves
For the quarter ended March 31, 2026, Rupali Polyester posted a loss of Rs234.7 million, compared with a loss of Rs289.3 million in the corresponding quarter of 2025.
Quarterly net sales stood at Rs501.5 million, down from Rs622.7 million. Other income, however, increased to Rs43.1 million from Rs19.4 million.
The quarterly loss per share improved to Rs7.21 negative, compared with Rs8.49 negative in the same quarter last year.
Cash position strengthens
Rupali Polyester’s balance sheet showed a stronger cash position at the end of March 2026. Cash and cash equivalents stood at Rs597.7 million, compared with Rs138.4 million at June 30, 2025.
Total assets increased to Rs12.32 billion from Rs12.01 billion, while shareholders’ equity stood at Rs5.68 billion.
The company’s short-term borrowings, however, increased to Rs3.59 billion from Rs2.49 billion at the end of June 2025, highlighting continued reliance on short-term financing.
Operating cash flow remains under pressure
The cash flow statement shows that the company continued to face pressure at the operating level. Rupali Polyester recorded a net cash outflow from operating activities of Rs570.3 million during the nine months, compared with an outflow of Rs562.1 million in the same period last year.
Financing activities generated Rs617.0 million, primarily supported by an increase in short-term borrowings, while investing activities generated a net inflow of Rs412.7 million. Overall, cash and cash equivalents increased by Rs459.3 million during the period.
Outlook
Rupali Polyester’s latest results present a mixed picture. The sharp reduction in the nine-month loss and improvement in earnings per share are positive developments, while the substantial decline in sales and continued operating cash outflows remain key challenges.
The company’s improved bottom line was helped significantly by higher other income and lower finance costs rather than stronger sales. Going forward, a recovery in core operating revenue and sustained improvement in gross profitability will be important for the company to move back toward sustainable profitability.
