Karachi: Blue-Ex Limited has reported its Annual Report for the fiscal year ending June 30, 2026, showing a downturn in financial performance due to various operational challenges. The report, dated November 10, 2026, highlights the company's strategic focus on diversified operations in domestic cargo, domestic and international courier, and freight.
In the fiscal year 2026, Blue-Ex Limited's consolidated net revenue stood at Rs. 1,322.3 million, a decrease of 1.5% from the Rs. 1,342.7 million recorded in fiscal year 2025. This decline is attributed to pricing pressure in the domestic courier market, increased fuel costs, and a cautious cash-on-delivery (COD) market. The cost of revenue rose by 6.0% to Rs. 870.4 million, influenced by fuel price inflation and higher network operating costs, resulting in a 13.4% decline in gross profit to Rs. 451.9 million. Consequently, the gross margin narrowed to 34.2% from the previous year's 38.9%.
General and administrative expenses climbed by 14.5% to Rs. 378.8 million. The allowance for expected credit losses increased to Rs. 29.8 million, reflecting a cautious provisioning approach amid cash-cycle stress in the COD and SME segments. Operating profit experienced a significant decline of 81.5%, falling to Rs. 32.8 million from the previous year's figure, with the operating margin reducing to 2.5% from 13.2% in 2025.
After accounting for finance costs of Rs. 39.1 million and taxation, Blue-Ex Limited reported a loss after tax of Rs. 15.6 million, a stark contrast to the Rs. 99.9 million profit recorded in the previous fiscal year. This translates to a loss per share of Rs. 0.055 compared to the earnings per share of Rs. 0.364 in 2025.
According to information available from the Pakistan Stock Exchange (PSX), Blue-Ex Limited made history as the first entity to transition from the GEM Board to the Main Board (Ready Board), marking a significant milestone for the company. Despite the financial setbacks, Blue-Ex is leveraging its diversified business model, aiming for stable business volumes and exploring expansion through partnerships.
The broader economic landscape presented significant challenges, with global fuel prices rising due to geopolitical tensions and OPEC+ supply adjustments. These factors directly impacted logistics and freight operations, with increasing jet fuel and bunker costs affecting freight margins and transportation costs. In Pakistan, these pressures were particularly pronounced within the COD-driven local e-commerce sector, affecting merchant profitability and working capital cycles.
The unconsolidated financial performance for 2025-26 revealed a loss after tax of Rs. 26.6 million, compared to a profit of Rs. 89.9 million the previous year. On a standalone basis, net revenue decreased to Rs. 1,101.99 million, and the cost of revenue rose to Rs. 870.38 million. The operating profit for the year was a loss of Rs. 20.03 million, in stark contrast to the Rs. 124.16 million profit recorded in 2025.
Blue-Ex Limited remains focused on its core strengths, aiming to navigate the challenging business environment and enhance shareholder value through strategic growth initiatives and international partnerships.