KARACHI:Â Al Shaheer Corporation Limited (PSX: ALSHEER) has reported a sharp deterioration in its financial performance for the first quarter of FY26, with its net loss expanding by over 83% amid a crushing burden of finance costs, according to a company filing sent to the Pakistan Stock Exchange (PSX) on Wednesday.
The company’s Board of Directors, in a meeting held on October 29, approved the unaudited financial results for the quarter ended September 30, 2025. The board did not recommend any cash dividend, bonus shares, or right shares.
For the quarter, the company posted a net loss of Rs 201.81 million, a significant increase from the net loss of Rs 109.91 million in the same quarter last year. This translates to a loss per share of Rs 0.54, compared to a loss per share of Rs 0.29 in the prior year period.
The primary driver behind the ballooning loss was a staggering increase in finance costs, which soared to Rs 77.55 million from a negligible Rs 1 thousand in the same quarter last year. This indicates the company has taken on substantial debt, the servicing of which is now severely impacting its bottom line.
The company’s core operations continued to struggle, recording a gross loss of Rs 100.36 million on a turnover of Rs 91.85 million. Indicating that the company’s cost of sales was more than double its revenue, an unsustainable position that highlights severe operational inefficiency or pricing pressures.
The Statement of Financial Position reveals a weak equity base, with accumulated losses swelling to Rs 5.04 billion as of September 30, 2025. This massive deficit continues to erode the company’s total equity, which stood at just Rs 218.68 million against a paid-up capital of Rs 3.75 billion.
The company’s liquidity position remains precarious. While there was a minor net increase in cash during the quarter, the closing cash and bank balances were a thin Rs 5.11 million, raising concerns about its ability to meet immediate obligations amidst high short-term borrowings of Rs 1.82 billion.
The results paint a picture of a company under severe financial distress. The explosive growth in finance cost is the most critical red flag, suggesting a heavy reliance on borrowing to sustain operations despite consistent losses. The company’s stock price dropped by almost 4% at the close of market today, following its year three month trajectory.
With negative retained earnings and minimal cash buffers, Al Shaheer Corporation faces a challenging path to turnaround. Investors will be focused on the company’s strategy to manage its debt load, restore operational profitability, and secure its financial future. The absence of any corporate action further underscores the company’s constrained position.
