AGHA Steel narrows H1 loss to Rs1.8bn

February 26, 2026 (MLN): Agha Steel Industries Limited (PSX: AGHA) reported a net loss of Rs1.80 billion for the half year ended December 31, 2025, narrowing by more than half from the Rs3.84bn loss recorded in the same period last year.

The company's loss per share improved 60.63% to Rs2.50 from Rs6.35 in the corresponding period of the previous year, signaling a meaningful recovery in per-share performance.

Net turnover declined 4.15% to Rs5.14bn from Rs5.36bn in H1 FY2025, showing modest pressure on the top line amid challenging market conditions.

Cost of sales fell 5.17% to Rs5.83 billion from Rs6.15 billion, providing partial relief but remaining well in excess of revenues.

This resulted in a gross loss of Rs693.32m, narrowing 12.16% from Rs789.30m in the prior period, suggesting a gradual improvement in core operational efficiency despite the company continuing to operate below break-even at the gross level.

On the operating side, administrative expenses declined sharply by 34.39% to Rs209.49m from Rs319.28m, showing disciplined cost management.

However, selling and distribution costs rose 7.63% to Rs197.61m from Rs183.60m, partially offsetting gains elsewhere.

Finance costs dropped significantly by 34.63% to Rs1.62 billion from Rs2.48bn, providing substantial relief and emerging as one of the primary contributors to the overall improvement in the bottom line.

Other expenses fell dramatically by 91.32% to Rs88.59 million from Rs1.02bn, offering considerable support to the results. Other income, however, declined 83.27% to Rs40.46m from Rs241.87m, limiting the overall benefit from non-core gains.

Operating loss narrowed 27.86% to Rs2.72 billion from Rs3.78 billion in H1 FY2024.

Loss before levy and taxation improved 39.13% to Rs2.77 billion from Rs4.56 billion in H1 FY2024.

Levy fell marginally by 2.35% to Rs65.47 million from Rs67.04m, bringing loss before taxation to Rs2.84 billion, narrowing 38.60% from Rs4.62bn in the prior period.

Taxation recorded a net credit of Rs1.03 billion compared to Rs780.82m in the same period last year, a 32.43% increase in deferred tax benefit, which materially reduced the net loss and brought the loss after taxation to Rs1.80bn.

Total comprehensive loss for the period stood at Rs1.80bn, narrowing by more than half from Rs3.84bn in H1 FY2025, marked a significant step toward financial recovery for the company.

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