Karachi: Dewan Farooque Motors Limited has reported a substantial financial downturn for the third quarter ending March 31, 2026. The automotive company recorded considerable losses, illustrating a challenging period for the firm.
The company reported net sales of 726.41 million rupees for the nine months ending March 31, 2026, a decrease from the 763.08 million rupees noted during the same period in 2025. This represents a very large or significant move of -4.80%. The quarter-end figures also showed a similar downward trend, with net sales reaching 326.85 million rupees, down from 363.52 million rupees, marking a -10.08% very large or significant move.
Cost of sales showed an increase, standing at 979.18 million rupees for the nine-month period compared to 942.56 million rupees in the previous year. For the quarter, the cost rose to 456.37 million rupees from 419.74 million rupees, leading to a wider gross loss.
The company’s gross loss for the nine months was 252.77 million rupees, compared to a gross loss of 179.48 million rupees in the previous year. In the third quarter, the gross loss widened to 129.52 million rupees from 56.22 million rupees.
Operating expenses also increased, with marketing and distribution expenses rising to 56.44 million rupees from 47.55 million rupees for the nine-month period. Administrative and general expenses were reported at 53.99 million rupees, up from 47.32 million rupees. The operating loss for the nine months extended to 363.20 million rupees from 274.35 million rupees.
A significant loss was also recorded in the "other loss" category, amounting to 67.86 million rupees for the nine-month period, compared to 43.65 million rupees the previous year. This trend continued in the third quarter, with losses climbing to 28.20 million rupees from 3.98 million rupees.
Finance costs increased to 1.27 million rupees from 396,000 rupees in the nine-month period, with a similar trend in the quarter-end figures.
According to information available from the Pakistan Stock Exchange (PSX), Dewan Farooque Motors reported a loss before income tax and levies of 432.33 million rupees for the nine-month period, up from 318.39 million rupees previously. The quarter's figure stood at 205.09 million rupees, an increase from 91.15 million rupees.
Despite a slight decrease in levies from 9.54 million rupees to 9.08 million rupees over the nine-month period, the loss before income tax grew to 441.41 million rupees from 327.93 million rupees. The quarterly figure increased to 209.17 million rupees from 95.69 million rupees.
The company’s net loss for the nine months was 441.41 million rupees, a significant rise from the previous year’s 328.10 million rupees. The quarterly loss also increased to 209.00 million rupees from 95.69 million rupees.
Loss per share was reported at -1.75 rupees for the nine-month period, compared to -2.36 rupees previously. For the quarter, the loss per share was -0.07 rupees, showing a decrease from -0.69 rupees. These results highlight the financial difficulties faced by Dewan Farooque Motors during this period.