AGHA 9MFY26 net loss narrows by 47%

April 29, 2026 (MLN): Agha Steel Industries Limited (PSX: AGHA) reported a significant 47% reduction in its net loss for the nine months ended March 31, 2026, recording a loss of Rs2.73bn compared to a heavier net loss of Rs5.17bn in the corresponding period last year.

Reflecting this notable improvement in the bottom line, the company's basic loss per share narrowed to Rs4.51 from Rs8.55, while the diluted loss per share improved to Rs3.79 from Rs8.55 in 9MFY25.

The narrowed loss was achieved despite top-line headwinds, primarily due to aggressive cost-cutting measures and a substantial reduction in finance costs. AGHA’s net turnover posted a 9% year-on-year decline, falling to Rs7.32bn from Rs8.08bn.

The cost of sales also declined by 9% to Rs8.41bn. Since direct production costs continued to outpace total revenue, the company remained in the red at the core level; however, the gross loss did narrow by 7%, settling at Rs1.09bn compared to Rs1.17bn in the prior year.

On the operational front, the company executed strict overhead containment. Administrative expenses were slashed by 35% to Rs295.70m, and selling and distribution costs were reduced by 23% to Rs253.50m.

 A major relief came from debt servicing, where finance costs were heavily trimmed by 31%, dropping to Rs2.36bn from a crippling Rs3.44bn burden in the same period last year. Driven by these comprehensive cost reductions, the operating loss narrowed by 26% to Rs3.99bn.

Below the operating line, AGHA saw other expenses plummet by 90% to just Rs132.38m (down from Rs1.28bn last year). Although "other income" also crashed by 84% to Rs55.97m, the massive savings in finance costs and other expenses allowed the loss before levy and taxation to narrow by 36% to Rs4.07bn.

After accounting for a slightly lower statutory levy of Rs93.59m, the loss before taxation stood at Rs4.16bn.

The company found a final major cushion in a positive net taxation credit of Rs1.43bn, which was 15% higher than the Rs1.24bn tax credit recorded last year. This significant tax reversal helped Agha Steel contain its final net loss, cutting it nearly in half to close the nine-month period at Rs2.73bn.

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