TRG Pakistan Reports Rs4.72 Billion Nine-Month Loss as Investment Share Weighs on Earnings

KARACHI: TRG Pakistan Limited (PSX: TRG) has posted a consolidated net loss of Rs4.718 billion for the nine months ended March 31, 2026, reversing the Rs4.015 billion profit recorded during the corresponding period last year, according to the company’s latest financial results.

The company’s earnings were significantly impacted by its share of losses from equity-accounted investments. During the nine-month period, TRG recorded a share of loss in equity-accounted investees of Rs5.142 billion, compared with a share of profit of Rs5.259 billion in the same period of the previous year. This sharp turnaround heavily weighed on the company’s overall financial performance.

For the third quarter alone, TRG Pakistan reported a net loss of Rs8.964 billion, compared with a loss of Rs299.8 million in the corresponding quarter of last year. Loss per share widened to Rs16.44, versus Rs0.55 a year earlier.

Administrative and other expenses declined to Rs348.2 million during the nine-month period from Rs456.4 million a year earlier. However, the reduction in expenses was insufficient to offset the substantial investment-related losses. Interest income also fell sharply to Rs739,000 from Rs1.694 million in the corresponding period.

Despite the earnings setback, TRG Pakistan reported a tax credit of Rs771.3 million, which partially cushioned the overall loss. Nevertheless, total comprehensive loss for the period stood at Rs5.326 billion, compared with a comprehensive income of Rs4.262 billion in the same period last year.

The company’s financial position remained sizeable, with total assets of Rs40.83 billion as of March 31, 2026, while shareholders’ equity stood at Rs32.61 billion. Cash and bank balances improved slightly to Rs28.14 million, supported by positive operating cash flows during the period.

TRG Pakistan generated net operating cash flows of Rs1.329 million during the nine months ended March 31, 2026, compared with a net cash outflow from operating activities in the same period last year. After financing outflows, the company reported a net increase in cash and cash equivalents of Rs974,000.

The Board of Directors, in its meeting held on April 28, 2026, did not recommend any cash dividend, bonus shares, right shares, or any other corporate action for the period.