Peshawar: Khyber Tobacco Company Limited has reported a substantial financial downturn for the fiscal year ending June 30, 2026, as revealed in its annual report released on October 8, 2026. The company's financial performance exhibited marked decreases in key areas, alongside notable increases in liabilities.

The statement of financial position highlights that Khyber Tobacco's total equity and liabilities soared to 19.74 billion rupees from the previous year's 16.72 billion rupees, indicating a major expansion in the company's financial obligations. Among these, current liabilities saw a rise from 13.39 billion rupees to 16.54 billion rupees. Trade and other payables alone accounted for 14.60 billion rupees of the current liabilities, up from 11.71 billion rupees, demonstrating a very large or significant move.

According to information available from the Pakistan Stock Exchange (PSX), Khyber Tobacco's revenue from contracts with customers decreased from 9.89 billion rupees in 2025 to 9.33 billion rupees in 2026. This reflects a moderate move in revenue, adversely impacting the company's profitability. The cost of sales increased to 9.19 billion rupees from 8.12 billion rupees, further squeezing the gross profit, which dropped sharply from 1.77 billion rupees to 131.12 million rupees.

The company's operating performance also deteriorated, reflecting an operating loss of 729.63 million rupees, a stark contrast to the previous year's profit of 983.58 million rupees. This was compounded by increased selling and distribution expenses, which rose from 324.61 million rupees to 465.29 million rupees, and a finance cost of 213.32 million rupees compared to 328.67 million rupees last year, contributing to the overall financial strain.

The report also shows that the loss before income tax was 1.09 billion rupees, compared to a profit of 414.33 million rupees in the previous year. Despite a taxation benefit of 67.95 million rupees, the company ended the year with a net loss of 1.02 billion rupees, a significant downturn from a profit of 274.65 million rupees in 2025. Earnings per share dropped from 39.67 rupees to negative 147.45 rupees.

Khyber Tobacco's financial results underscore the challenges facing the company, marked by increased liabilities and decreased profitability, as it navigates a complex market environment.