AGHA narrows loss by 34% in FY26

September 24, 2026 (MLN): Agha Steel Industries Limited (PSX: AGHA) narrowed its net loss by 34% for the fiscal year ended June 30, 2026, recording a net loss of Rs4.74bn compared to a net loss of Rs7.21bn in the preceding year.

Reflecting this deficit reduction, basic and diluted loss per share (LPS) for the year improved to Rs7.62, down from an LPS of Rs11.92 in FY25.

The primary factors influencing performance were top-line sales compression, persistent gross losses, and structural cost-reduction measures across administrative, operating, and borrowing expenses.

Net turnover fell by 21% year-on-year to Rs8.39bn, down from Rs10.67bn in FY25.

Although cost of sales contracted by 15% to Rs10.74bn, lower sales volumes led to an expanded gross loss of Rs2.35bn compared to Rs1.98bn in the prior year.

On the operational front, strict cost-containment measures helped curtail administrative expenses by 14% to Rs456.01m and selling & distribution costs by 6% to Rs331.71m.

Additionally, other expenses plummeted by 75% to Rs267.13m (down from Rs1.06bn in FY25).

Although "other income" dropped 79% to Rs51.48m, overhead reductions enabled the company to narrow its operating loss by 15% to Rs6.02bn.

Below the operating line, AGHA received substantial debt-servicing relief, with finance costs falling 32% to Rs2.88bn (down from Rs4.20bn in FY25).

Combined with a 4% decrease in statutory levies (Rs103.47m), loss before taxation narrowed by 20% to Rs6.34bn.

The company recorded a net taxation credit of Rs1.60bn for the year (up from Rs757.68m in FY25). Backed by significant reductions in finance charges, administrative overheads, other expenses, and higher deferred tax credits, Agha Steel Industries Limited closed the fiscal year with its net loss reduced to Rs4.74bn.

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