Gatron FY26 loss narrows 75% to Rs496m

September 21, 2026 (MLN): Gatron (Industries) Limited (PSX: GATI) recorded a 75% reduction in its consolidated net loss for the year ended June 30, 2026, with loss for the year narrowing to Rs496.35m from Rs2.01bn in the corresponding period last year.

Showing this meaningful improvement, the company's basic and diluted loss per share narrowed to Rs4.56 from Rs18.53 in FY25.

The top-line showed healthy growth, with sales rising 15% year-on-year to Rs30.15bn from Rs26.33bn in the prior year.

Cost of sales rose at a slower pace of 12% to Rs28.63bn, creating a meaningful positive differential with revenue growth and causing gross profit to surge 80% to Rs1.51bn from Rs839.37m a transformative improvement in gross margin that formed the bedrock of the earnings recovery.

On the expenditure side, distribution and selling costs declined 28% to Rs319.52m, providing meaningful relief. Administrative expenses rose 7% to Rs536.91m, while other expenses nearly halved to Rs62.48m from Rs121.10m.

Other income surged to Rs632.33m from Rs106.91m nearly sixfold providing a powerful additional boost. These combined movements swung operating profit to Rs1.23bn from an operating loss of Rs123.29m last year a decisive turnaround.

Below the operating line, finance cost declined 13% to Rs1.36bn from Rs1.55bn, providing a further tailwind.

Despite the improved operating position, finance cost continued to outweigh operating profit, resulting in a loss before levies and income tax of Rs130.62m though this was 92% narrower than the Rs1.67bn loss recorded last year.

Levies rose 14% to Rs375.82m from Rs329.84m, adding to the loss burden and pulling loss before income tax to Rs506.44m still 75% narrower than the Rs2.00bn pre-tax loss last year.

Income tax swung to a charge of Rs10.09m from a credit of Rs10.66m in the prior period, providing negligible movement.

The net result was a loss for the year of Rs496.35m a 75% improvement over the prior year, reflecting the company's meaningful operational recovery despite the persistent drag from finance costs and levies.

Copyright Mettis Link News