Faisalabad: The Board of Directors of Amtex Limited has released the company's un-audited financial results for the first quarter ending September 30, 2026, revealing a significant downturn in sales and profitability compared to the same period last year. The report, dated October 30, 2026, indicates that the company's financial performance has been adversely affected by various global economic factors.
Sales for the quarter declined to Rs. 587.70 million from Rs. 925.48 million recorded in the corresponding period of 2025. The cost of sales also decreased to Rs. 523.43 million from Rs. 805.26 million. Consequently, gross profit fell to Rs. 64.27 million, down from Rs. 120.21 million in the previous year's first quarter.
The company's net financial outcome for the period under review was a loss of Rs. 31.04 million, a stark contrast to the net profit of Rs. 10.35 million realized during the same quarter in the previous year. This shift resulted in basic and diluted earnings per share dropping from Rs. 0.04 to a loss of Rs. 0.12.
According to information available from the Pakistan Stock Exchange (PSX), the decrease in Amtex Limited's export sales was primarily due to diminished demand in Western markets, driven by high inflation and tighter monetary policies in the United States and the European Union. These factors have slowed global retail orders. Additionally, ongoing instability in the Middle East has disrupted shipping lanes, leading to an increase in sea freight rates by 1.5 to 2.5 times. This situation has further compressed margins and delayed deliveries.
The report also highlights legal challenges faced by Amtex Limited, with several banks and financial institutions having filed suits against the company for the recovery of financing and accrued markup. The company has not provisioned for these markups, relying on legal opinions suggesting that financial institutions are only entitled to such costs if awarded by the court in a decision against the company. The ultimate financial impact of these proceedings remains contingent on future court rulings and applicable rates as determined by the State Bank of Pakistan.
As Amtex Limited navigates these complex challenges, stakeholders will be closely monitoring the company's strategic responses and the broader economic environment's impact on its operations.