Peshawar: Khyber Tobacco Company Limited has reported a significant financial downturn for the fiscal year ending June 30, 2026, as detailed in its financial results released on October 6, 2026. The company's revenue from contracts with customers amounted to 9.33 billion rupees, a decrease from the 9.89 billion rupees recorded in the previous year. This decline in revenue contributed to an operating loss of 729.63 million rupees, a stark contrast to the operating profit of 983.58 million rupees seen the year before.

The company's gross profit fell to 131.12 million rupees from the previous year's 1.77 billion rupees. Administrative expenses were recorded at 348.06 million rupees, while selling and distribution expenses rose to 465.29 million rupees. The expected credit loss on financial assets also decreased to 47.39 million rupees from 104.41 million rupees in 2025.

According to information available from the Pakistan Stock Exchange (PSX), Khyber Tobacco's total liabilities increased to 16.54 billion rupees from 13.39 billion rupees in the previous year. This increase was largely due to a rise in trade and other payables, which reached 14.60 billion rupees. Non-current liabilities also grew, with deferred taxation increasing to 315.90 million rupees from 163.57 million rupees.

The company's loss before income tax was 1.09 billion rupees, compared to a profit of 414.33 million rupees in 2025. After accounting for taxation, the loss for the year stood at 1.02 billion rupees, a significant move from the previous year's profit of 274.65 million rupees. The earnings per share also reflected this downturn, falling to a loss of 147.45 rupees from a profit of 39.67 rupees in the prior year.

The statement of financial position showed that Khyber Tobacco's total assets increased to 19.74 billion rupees from 16.72 billion rupees in 2025, with notable increases in property, plant, and equipment, and taxes refundable. However, cash and bank balances declined to 78.51 million rupees from 1.31 billion rupees, highlighting liquidity challenges facing the company.

Khyber Tobacco, operating within the designated market category of tobacco production, faces a challenging financial environment as it navigates these substantial losses and seeks strategies to stabilize its financial performance.