Karachi: Pak Leather Crafts Limited has released its unaudited financial statements for the first quarter ending September 30, 2026, revealing a significant improvement in financial performance compared to the same period last year. This development comes as the company implements strategic changes following a special resolution passed by its members in 2024.

The company's financial results display a notable reduction in losses. The profit before taxation stands at a loss of Rs. 729,000, which marks a considerable improvement from the loss of Rs. 2.298 million reported in the corresponding quarter of 2025. Similarly, the loss after taxation has narrowed to Rs. 839,000 from Rs. 2.361 million recorded last year. The loss per share has decreased to Rs. 0.25 from Rs. 0.69 during the same timeframe.

The total turnover for the quarter reached Rs. 11.047 million, driven exclusively by exports, including rebates. This represents a growth from the Rs. 6.548 million turnover reported in the same quarter of the previous year. The gross profit for the period has also increased to Rs. 2.691 million, up from Rs. 1.774 million last year.

According to information available from the Pakistan Stock Exchange (PSX), the company's shift to toll manufacturing has played a pivotal role in these financial results. By arranging production under toll manufacturing agreements, Pak Leather Crafts Limited has effectively reduced manufacturing expenses, which were previously under-absorbed in a self-manufacturing setup. This strategic pivot has played a crucial role in narrowing the losses and improving the overall financial outlook.

The directors of Pak Leather Crafts Limited have been methodically implementing the strategic decisions outlined in the 2024 special resolution. The disposal of plant and machinery assets has facilitated this transition. The proceeds from these sales, along with other cash resources, have been utilized to fully repay the company's obligations to Bank Albaraka Pakistan.

In summary, Pak Leather Crafts Limited's first-quarter financial performance for 2026 reflects positive strides toward recovery and growth, as evidenced by the more favorable financial metrics and strategic adaptations undertaken by the company's leadership.