Hyderabad: Fateh Sports Wear Limited, a company incorporated in 1984 and listed on the Pakistan Stock Exchange, has reported financial data for the third quarter ending March 31, 2026. The company, which specializes in the manufacturing of ready-made garments for local sales and export, disclosed a net loss before taxation of 12,247,488 Rupees for the period, a notable decline from the 2,431,789 Rupees loss recorded in the same quarter last year.

According to information available from the Pakistan Stock Exchange (PSX), the company received a significant influx of loans from its directors during this quarter. The loans totaled 2,831,472 Rupees, with contributions from directors Saeed Alam, who provided 2,031,472 Rupees, and smaller loans from Rauf Alam, Aftab Alam, and Faraz Alam. This financial maneuver reflects the company’s reliance on internal financing amid its current fiscal challenges.

The financial statements, prepared in accordance with International Accounting Standard 34, indicate that the company’s cash from operations improved to 6,303,873 Rupees, compared to a negative cash flow of 769,639 Rupees in the previous year. This improvement was primarily driven by changes in working capital, notably a 9,100,000 Rupees increase in trade receivables.

Despite these operational cash flow gains, the company’s statement of changes in equity shows a decrease in accumulated profit, which fell to 487,887,205 Rupees from 500,134,693 Rupees as of July 1, 2025. The total equity balance now stands at 561,387,205 Rupees.

Fateh Sports Wear’s financial activities also highlighted an exchange loss amounting to 9,100,000 Rupees, a reversal from the 200,000 Rupees gain reported in the prior year. This contributed to the company’s overall financial challenges this quarter.

The company’s liquidity position saw modest improvement, with cash and cash equivalents increasing to 118,155 Rupees from 82,931 Rupees at the beginning of the period. However, the net increase in cash and cash equivalents was a mere 35,224 Rupees, reflecting the constrained financial environment the company operates in.

These unaudited interim financial statements, issued in compliance with the Companies Act, 2017, highlight the ongoing fiscal challenges Fateh Sports Wear Limited faces in a competitive market environment. The company’s reliance on internal sources of capital, coupled with its operational adjustments, underscores its strategic efforts to navigate financial instability amid broader economic conditions.