Karachi: Beco Steel Limited has reported a significant downturn in its financial performance for the first quarter ended September 30, 2026. The company's un-audited financial statements, released on October 29, 2026, reveal a substantial decrease in sales and profits compared to the same quarter last year.

The financial highlights of the quarter show sales amounting to Rs. 1,476.20 million, a very large or significant move of 36.28% down from the Rs. 2,316.60 million reported in the corresponding period of 2025. Gross profit also declined significantly to Rs. 172.32 million from Rs. 223.66 million, marking a big move of 22.96%. Operating profit experienced a similar decline, falling by 25.04% to Rs. 134.02 million from the previous year's Rs. 178.78 million.

Profit before taxation was reported at Rs. 136.12 million, down from Rs. 178.91 million, reflecting a decrease of 23.92%. Meanwhile, profit after taxation showed a decline of 21.53%, totaling Rs. 117.67 million compared to Rs. 149.96 million in the previous year. Earnings per share were reported at Rs. 0.09, down from a restated value of Rs. 0.12 last year.

According to information available from the Pakistan Stock Exchange (PSX), Beco Steel's gross margin increased to 11.67% from the previous year's 9.65%, despite the overall decline in profit metrics. Administrative and general expenses were reduced to Rs. 37.00 million from Rs. 42.39 million, indicating efforts to control operational costs.

The company's financial position at the end of the quarter revealed total assets of Rs. 6,474.50 million, a decrease from Rs. 7,635.75 million as of June 30, 2026. Equity stood at Rs. 3,624.90 million, up from Rs. 3,537.23 million. A marked decrease was noted in trade debts, which fell to Rs. 844.14 million from Rs. 2,125.06 million, and trade and other payables, which reduced to Rs. 2,654.37 million from Rs. 3,903.28 million. The company's operating activities generated net cash of Rs. 50.55 million, with Rs. 30.00 million of the directors' loan being repaid during the quarter.

In terms of projects, Beco Steel reported progress on its 5 MW solar power project at its Lahore units, a construction initiative that began in February 2026. Despite the financial challenges, the Board has decided not to declare any dividend for the quarter.