Karachi: Bela Automotives Limited has released its annual financial report for the fiscal year ending June 30, 2026, revealing continued financial difficulties and ongoing legal battles. Despite a challenging economic environment, the company is navigating potential acquisition talks as it seeks a path to recovery.
The report, dated October 14, 2026, highlights the persistent economic challenges faced by the engineering sector in Pakistan. Inflation has decreased to single digits, prompting a reduction in the central bank's interest rate from 17.5% to 11%, with further declines anticipated by year-end. However, Bela Automotives continues to grapple with high operational costs and an unfavorable business climate.
The company's financial results for 2026 show a gross loss of 4,198,931 rupees, compared to a loss of 4,682,063 rupees in 2025. The profit or loss before tax stood at a deficit of 25,249,566 rupees, slightly worsening from the previous year's 24,514,639 rupees. The accumulated losses carried forward to the balance sheet remained at 25,249,566 rupees, with earnings per share declining to negative 4.35 from negative 4.23.
Bela Automotives' financial woes have been exacerbated by legal disputes, notably with Habib Bank Limited (HBL). The company has filed a lawsuit against HBL for alleged unlawful charges and adverse credit reporting, which has hindered its ability to secure essential working capital. The litigation, filed in the Honorable High Court of Sindh at Karachi, involves claims of damages amounting to 599.214 million rupees.
The company recently resolved a long-standing dispute with HBL, receiving a no-objection certificate for the release of charges. The documents for the release are currently being processed by the Registrar in Tehsil Hub, District Lasbella, Baluchistan, and the Securities and Exchange Commission of Pakistan.
In a significant development, Bela Automotives is in the final stages of a potential acquisition. Mr. Amir Noman has issued a firm intention to acquire 2,900,000 ordinary shares, representing 50.02% of the company's total shares. The process is underway, and the company expects the deal to conclude soon.
According to information available from the Pakistan Stock Exchange (PSX), the anticipated acquisition could provide Bela Automotives with the financial infusion needed to address its ongoing challenges. The company plans to engage financial institutions for new working capital and aims to resume production in the near future.
Despite the challenges, the company's management is focusing on cost reduction strategies and exploring export opportunities with better margins to improve financial outcomes. The directors and staff remain committed to navigating the current economic landscape while pursuing avenues for growth and recovery.