Karachi: The Board of Directors of Husein Industries Limited has released its review accompanying the condensed interim financial statements for the first quarter ended September 30, 2026, highlighting a challenging economic environment marked by persistent inflationary pressures. The report, dated October 30, 2026, provides a comprehensive overview of the company's financial performance and strategic priorities.
Inflation during the quarter averaged 10.20%, with the Consumer Price Index (CPI) inflation standing at 10.26% in September 2026. This was largely driven by escalating global energy and food prices. In response, the State Bank of Pakistan maintained the policy rate at 11.5% in July and September, before raising it by 50 basis points to 12% on October 26, 2026.
For the quarter under review, the company reported a revenue of Rupees 39.610 million, a decline from the Rupees 51.011 million recorded in the same period last year. The decrease was primarily due to the exit of a long-term tenant. Administrative expenses rose to Rupees 17.041 million, up from Rupees 12.656 million in the previous year, mainly due to increased costs related to salaries, wages, allowances, and travel. Finance costs remained broadly stable at Rupees 8.107 million, largely comprising mark-up on loans from directors.
According to information available from the Pakistan Stock Exchange (PSX), profit before levy and income tax dropped significantly to Rupees 1.232 million from Rupees 18.578 million in the corresponding period last year. Earnings per share for the quarter were Rupees 0.15, down from Rupees 1.86.
The company is progressing with its commercial development project, Jamal Garden, located at Plot LT-21, Landhi Industrial Area, Karachi. Scheduled for launch in the second quarter of 2026-27, the project is pending final regulatory approvals.
The directors noted a material uncertainty that may cast doubt on the company's ability to continue as a going concern. However, they expressed confidence in the company's recurring lease income, director support, and strategic plans, including the Jamal Garden launch and financial projections.
Looking ahead, the Board aims to secure the remaining regulatory approvals and launch the commercial component of Jamal Garden to generate revenue from the development property. They also plan to reduce liabilities to directors and fulfill outstanding statutory obligations. Continued urbanization and overseas remittances support demand for residential and commercial property in Karachi, but the increased policy rate, ongoing inflation, and property transaction taxes may impact buyer sentiment and finance costs.
The Board acknowledged the dedication and commitment of the company's employees, as well as the support from lessees, customers, bankers, shareholders, government departments, and regulators.