Rupali Polyester Limited has reported a net loss of Rs266.11 million for the first quarter ended September 30, 2026, reflecting continued pressure on Pakistan’s polyester industry amid rising energy costs, expensive raw materials, high borrowing expenses and competition from cheaper imported synthetic fibres.
According to the company’s unaudited quarterly financial statements, the loss narrowed compared with Rs289.29 million recorded in the corresponding quarter of the previous year. Loss per share also improved to Rs7.81 from Rs8.49 in the same period last year.
However, the company’s financial performance remained under pressure as sales declined sharply during the reporting period. Net sales stood at Rs153.41 million compared with Rs967.45 million in the corresponding quarter of 2025.
The cost of sales reached Rs300.85 million, resulting in a gross loss of Rs147.44 million against a gross loss of Rs183.24 million in the same period last year.
Rising Costs Continue to Pressure Profitability
In its directors’ review, Rupali Polyester highlighted several challenges affecting its operations. Higher electricity and gas tariffs have increased manufacturing expenses, while volatility in international petrochemical markets has pushed up the prices of key raw materials, including Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG).
The company stated that weak domestic demand limited its ability to transfer the increased production costs to downstream textile consumers, resulting in further pressure on processing margins.
Additionally, high borrowing costs increased the company’s financial burden. Finance costs rose to Rs87.08 million during the quarter from Rs82.88 million in the corresponding period last year.
Cheap Imports Affect Local Polyester Industry
The company also identified competition from cheaper and subsidised imported synthetic fibres as a major challenge. According to management, imported products have put pressure on local market prices, restricted sales growth and forced domestic manufacturers to offer price concessions.
Rupali Polyester further noted that the anti-dumping duty imposed on polyester filament yarn by the National Tariff Commission on August 22, 2026, following remand proceedings, has faced fresh legal challenges. Multiple parties have challenged the determination before the Islamabad High Court and the Anti-Dumping Appellate Tribunal.
The outcome of these proceedings could remain important for the competitive position of Pakistan’s local polyester industry.
Financial Position and Cash Flow
The company’s total assets stood at Rs11.48 billion as of September 30, 2026, compared with Rs11.84 billion at June 30, 2026.
Short-term borrowings amounted to Rs3.53 billion, while cash and bank balances increased to Rs99.25 million from Rs36.19 million at the end of the previous financial year.
Despite reporting a quarterly loss, the company generated positive net cash flow of Rs54.69 million from operating activities, compared with a negative cash flow of Rs29.34 million in the corresponding quarter last year.
Management Focuses on Cost Reduction and Product Diversification
Looking ahead, Rupali Polyester expects the operating environment to remain challenging. Management is pursuing cost-optimisation initiatives, energy conservation measures and diversification of its product portfolio towards specialised yarns.
The company has also urged the government to rationalise industrial energy tariffs and ensure effective implementation of anti-dumping duties to provide local manufacturers with a more competitive operating environment.
The first-quarter results highlight the continuing difficulties faced by Pakistan’s polyester sector. While Rupali Polyester managed to reduce its year-on-year net loss, the significant decline in sales and continued cost pressures remain key challenges for the company’s financial recovery.
