https://www.halaenterprises.com https://www.terrytowels.org
3RD QUARTERLY REPORT FOR THE PERIOD ENDED MARCH 31, 20263rd Quarterly Report
Holo Enferprises Limited
CONTENTS
Company Information Director's Review Report
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Condensed Interim Statement of Financial Position Condensed Interim Statement of Profit or Loss Condensed Interim Statement of Comprehensive Income
Condensed Interim Statement of Cosh Flows Condensed Interim Statement of Changes in Equity Notes to the Condensed Interim financial Information
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3rd Quarterly Report
Halo Enterprises Limited
COMPANY INFORMATIONHUMAN RESOURCE & REMUNERATION COMMITTEE
H a l f Y e a r l y R e p o r t
J.S Bank Limited Foysol Bank Limited Askori Bank Limited MCB Bank Limited
Factory Premises, 17.5 KM Sheikhupuro Rood,
Lahore Tel: 042-37970130, 37970230
Fox: 042-37970681
Email.
Website:
M/'s Corplink (Private) Limited
Wings Arcade, 1-K, Commercial Model Town, Lahore
Tel: 042-35916714, 35916719 Fox: 042-35869037
Email. corpIink786@yohoo.com
3rd Quarterly Report
DIRECTOR'S REVIEW REPORT
The Directors of the Company hereby present the Directors' Review Report on the operations of the Company for the nine months period ended March 31, 2026.
Textile exporters of the country continued to face systemic challenges, including high energy tariffs, an increase in raw material prices due to the ongoing regional war, and increasing competition from rival countries in the trade. Despite these pressures, the Company demonstrated tremendous resilience and operational strength, delivering a notable improvement in performance during the period under review.
However, the most important external threat which emerged in the current Quarter has been the Israel-US-Iran War, which has blockaded the Strait of Hormuz, and as a result sent oil prices and other key raw material prices skyrocketing. In addition, the blockade created a major shipping lane disruption regionally, while creating a temporary suspension of services for all exports to the GCC and MENA region. These services to the region are still limited.
In order to understand the current Quarter performance, it is important to note that H1 of the current FY describes a story of organic growth driven strategically. The first six months our focus was to shift sales strategy by improving our product mix to cater for the upcoming hype in production capacity, while maintaining cost discipline. Post February 2026, we have ramped up production and accelerated export growth. Hence this current quarter has truly been a pivoting period for the company. This growth is anchored in the H1 strategy, where the company achieved 44% revenue growth [Top Line went from 221 M to 319 M, YoY] along with profit turnaround [Net Profit: Rs. 6.5 million vs Loss of Rs. 11.2 million, same period YoY]. The sales diversification and product portfolio management also helped improve margins by 50% [GP rose from Rs 40.8 M to 61.5 M]. During this period we also prepared ourselves for operational improvements in order to be able to handle larger capacity utilization which was due to begin in the following Quarter.
During the nine months ended March 31, 2026, the Company achieved a significant increase in revenue compared to the corresponding period last year supported by improved export volumes and a continued focus on value-added product lines. The Company reported a net profit of approximately Rs. 9.76 million, compared to a net loss of Rs 2.75 million in the same period last year, reflecting a sustained recovery in operational performance and turnaround for the bottom line.
In line with management's earlier guidance, the Company successfully commenced commercial production on its newly installed AirJet weaving machines in February 2026. The gradual ramp-up of this capacity has begun to positively impact production volumes and operational efficiency as well. The third quarter of the financial year reflects the initial contribution of these machines, with the Company maintaining profitability and demonstrating improved operational momentum compared to the corresponding period last year.
The Company continues to benefit from its earlier investments in energy optimization, including the solar power plant and conversion to bio-fuel-based thermal systems. These initiatives are expected to further enhance cost efficiency and reduce exposure to energy price volatility in the upcoming periods.
Looking ahead, the Company remains optimistic about sustaining its growth trajectory in the final quarter of the financial year. With improved capacity utilization, a strengthening order pipeline, and continued focus on operational discipline, we expect a stronger Q4. This will be made possible by full utilization of the newly installed capacity, shipment normalization and the conversion of backlog, while we experience a cash cycle easing along the expected timeline. A brief one-page visual performance chart highlighting key achievements to date is also shared for a more rounded understanding. See Appendix A.
However, the key challenge currently is sustaining the cash flow cycle in the ongoing ramping up of production through the shipping lane crisis and delayed transits. We believe that we have already passed the worst period and are now entering the easement phase of the cash flow cycle. A separate presentation has also been provided which sheds light on the ongoing scenario. See Appendix B.
The Board extends its sincere appreciation to its valued customers, suppliers, bankers, employees and talented executives for their continued support and confidence in the Company. Their commitment remains instrumental in the Company's progress. The Board remains confident that, with sustained strategic focus, the Company will continue to strengthen its operational base and deliver long-term value to its stakeholders.
For & on behalf of the Board
(TAHIR JAHANGIR) CHAIRMAN
LAHORE: April 30, 2026
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3rd Quarterly Report
3rd Quarterly Report
Holo Enferprises Limited
DIRECTOR'S REPORT Q3-2026: APPENDIX B
PERFORMANCE SNAPSHOT
Metric Revenue Gross Profit Net Profit
Operating Cash Flow
KEY RISKS
Last Year 334 M
69 M
(2.7 M)
25 M
Current Trend
550 M Strong Growth 100 M
6.9 M Turnaround
56 M Strong
High working capital intensity (100 to 120 days cash cycle)
Tax refunds stuck-up (Rs. 75M)
External shocks (shipping & supply line disruptions + un/scheduled daily load-shedding)
UPSIDE
Airjet capacity kicking in (Feb onwards)
Export Sales price mix is still strong
Receivable discipline is expected to improve as shipping lanes disruptions normalize
Stocks and WIP is moving towards shipment ready stage - thereby easing liquidity
FORWARD & CURRENT QUARTER CASH FLOW PROJECTION & EXPLANATION
@ JAN/FEB : Production ramp-up begins. Cash still tight due to high demand on raw material.
MAR/APR: Higher production. Inventory build-up. Shipments increase. Receivables Cycle starts.
Cash pressure continues
MAY/JUNE: Higher efficiency. Inventory normalizes. Cash generation improves.
Stabilization begins, Tax Refunds kick in by June along with payment cycle normalization.
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@ JUL/AUG: Full cycle stabilizes, lower working capital intensity, cash surplus begins.
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3rd Quarterly Report
3rd Quarterly Report
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITIONAS AT MARCH 31, 2026 (UN-AUDITED)
CAPITAL AND LIABILITIES
Share capital and reserves
Authorized Share Capital
Mar 2026 Jun 2025
Un-Audited Audited
Rupees Rupees
16,000,000 ordinary shares of Rs. 10 each 160,000,000 160,000,000
Issued, subscribed and paid up capital Capital reserves | 129,963,040 | 129,963,040 |
Surplus on revaluation of Property, Plant & equipment | 203,199,603 | 207,738,432 |
Fair value reserve of financial assets at FVOC | 8,232,483 | 15,282,971 |
Other capital reserves | 2,274,287 | 2,274,287 |
Revenue reserves | 213,706,373 | 225,295,690 |
Other revenue reserves | 7,000,000 | 7,000,000 |
Accumulated loss | (48,778,148) | (63,076,981) |
(41,778,148) | (56,076,981) | |
Loan fron Direcror | 238,000,000 | 120,000,000 |
Total Share Capotal And Reserve | 539,891,265 | 419,181,749 |
Non Current Liabilities | ||
Deferred liability | 39,139,799 | 41,715,471 |
Long term borrowing | - | - |
Total Non Current Liabilities | 39,139,799 | 41,715,471 |
Current Liabilities Trade and other payables | 63,413,393 | 37,867,707 |
Accrued mark up | 2,661,237 | 1,082,044 |
Short term borrowings | 156,431,000 | 179,882,000 |
Current portion of long term financing | - | 1,308,500 |
Due to related parties | 43,901,501 | 10,918,247 |
Provision for taxation | - | - |
Total Current Liabilities | 266,407,131 | 231,058,498 |
Contingencies and Commitments | ||
TOTAL EQUITY AND LIABILITIES | 845,438,195 | 691,955,718 |
The annexed notes form an integral part of this condensed interim financial information.
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CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER
DIRECTOR
3rd Quarterly Report
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITIONAS AT MARCH 31, 2026 (UN-AUDITED)
Mar 2026 Un-Audited | Jun 2025 Audited | |
Rupees | Rupees | |
ASSETS Non Current Assets | ||
Property, Plant and equipment | 423,243,415 | 299,437,896 |
Long term Investments | 9,416,117 | 16,466,605 |
Long term deposits | 6,569,548 | 6,569,548 |
Total Non- Current Assets | 439,229,080 | 322,474,049 |
Current assets | ||
Stores, spares and loose tools | 5,655,905 | 3,010,336 |
Stock in trade | 156,232,588 | 116,480,916 |
Trade debtors | 48,301,978 | 112,525,059 |
Advances, deposits, prepayments and | ||
other receivables | 98,842,673 | 69,725,485 |
Tax refund due from Governement | 81,958,824 | 64,648,941 |
Due from related parties | - | - |
Cash and bank balances | 15,217,148 | 3,090,932 |
Total Current Assets | 406,209,116 | 369,481,669 |
TOTAL ASSETS 845,438,195 691,955,718
The annexed notes form an integral part of this condensed interim financial information.
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CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER
DIRECTOR
3rd Quarterly Report
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS
9 Months Ended 9 Months Ended MAR 31, 2026 MAR 31, 2025 | Quarter Ended MAR 31, 2026 | Quarter Ended MAR 31, 2025 | |||||
(Un-audited) Rupees | (Un-audited) Rupees | (Un-audited) Rupees | (Un-audited) Rupees | ||||
Revenue | 549,993,312 | 333,539,787 | 230,714,835 | 112,236,798 | |||
Cost of revenue | (449,676,770) | (264,835,945) | (191,891,288) | (84,338,809) | |||
Gross profit | 100,316,542 | 68,703,842 | 38,823,547 | 27,897,989 | |||
OPERATING EXPENSES | |||||||
Selling and distribution Costs | (40,030,538) | (25,220,478) | (17,888,368) | (6,349,908) | |||
Administrative expenses | (25,840,708) | (19,258,083) | (9,460,986) | (5,155,679) | |||
Other operating expenses | (3,511,830) | (725,000) | (859,608) | (142,109) | |||
(69,383,076) | (45,203,561) | (28,208,962) | (11,647,696) | ||||
Operating profit | 30,933,466 | 23,500,281 | 10,614,585 | 16,250,293 | |||
Finance Cost | (14,167,815) | (22,223,823) | (4,301,730) | (5,522,600) | |||
Other income | 13,729 | 2,569,220 | 12,799 | 2,194,913 | |||
Profit before taxation and levies | 16,779,380 | 3,845,678 | 6,325,654 | 12,922,606 | |||
Levies | (7,019,376) | (6,598,492) | (3,089,857) | (4,464,350) | |||
Profit/(Loss) before taxation | 9,760,004 | (2,752,814) | 3,235,797 | 8,458,256 | |||
Taxation | - | - | |||||
Net profit/(Loss) for the period | 9,760,004 | (2,752,814) | 3,235,797 | 8,458,256 | |||
Earning/(Loss) per share-Basic | 0.75 | (0.21) | 0.25 | 0.65 | |||
The annexed notes form an integral part of this condensed interim financial information. | |||||||
CHIEF EXECUTIVE OFFICER | CHIEF FINANCIAL | DIRECTOR | |||||
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FOR THE QUARTER AND 9 MONTHS PERIOD ENDED MARCH 31, 2026 (UN-AUDITED)
OFFICER
3rd Quarterly Report
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR 3rd QUARTER ENDED MARCH 31, 2026 (UN AUDITED)
9 Months Ended | ||
Mar 31, 2026 | Mar 31, 2025 | |
Quater Ended | ||
Mar 31, 2026 | Mar 31, 2025 | |
Rupees | Rupees | Rupees | Rupees | |
Net Profit / (Loss) for the period | 9,760,004 | (2,752,814) | 3,235,797 | 8,458,256 |
Other comprehensive income | ||||
Items that will not be reclassified to profit or loss | ||||
Unrecognised acturial gain due to experience adjustment on remeasurement of staff retirement benefits | - | - | - | - |
Items that may be reclassified subsequently to profit or loss | ||||
Gain / (loss) on re-measurement of investment designated as FVOCI | (7,050,488) | 1,338,103 | (3,361,723) | (2,458,492) |
Total Comprehensive income for the year 2,709,516 (1,414,711) (125,926) 5,999,764
The annexed notes form an integral part of this condensed interim financial information.
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CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER
DIRECTOR
3rd Quarterly Report
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE 9 MONTHS PERIOD ENDED MARCH 31, 2026 (UN-AUDITED)
9 MONTHS ENDED | 9 MONTHS ENDED | ||
Mar 31, 2026 | Mar 31, 2025 | ||
CASH FLOW FROM OPERATING ACTIVITIES | (UN-AUDITED) Rupees | (UN-AUDITED) Rupees | |
Profit before taxation Adjustments for : | 16,779,381 | 3,845,678 | |
Depreciation | 13,761,062 | 9,456,349 | |
Provision for gratuity | 4,112,209 | 4,071,935 | |
Financial charges | 14,167,815 | 22,223,823 | |
32,041,086 | 35,752,107 | ||
Operating profit before working capital changes | 48,820,467 | 39,597,785 | |
(Increase) / decrease in current assets | |||
Stores and spares | (2,645,569) | (2,237,583) | |
Stock in trade | (39,751,672) | (23,103,272) | |
Trade debtors | 64,223,081 | 6,043,064 | |
Advances, deposits, prepayments and other receivables | (29,117,188) | (16,301,293) | |
Sales tax refundable | (17,309,883) | 4,968,040 | |
Due from associated undertakings | - | (28,067) | |
(Decrease)/ increase in current liabilities Due to directors and associated undertakings | 32,983,254 | 45,462,004 | |
Creditors, accrued and other liabilities | 25,545,686 | 8,897,593 | |
33,927,709 | 23,700,486 | ||
Cash generated from operations | 82,748,176 | 63,298,271 | |
Income tax paid | (7,019,376) | (6,598,492) | |
Financial charges paid | (12,588,622) | (25,195,364) | |
Gratuity paid | (6,687,881) | (6,371,360) | |
Net cash (used in) / from operating activities | 56,452,297 | 25,133,055 | |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Capital expenditure Proceeds from sale of fixed assets | (137,566,581) - | (6,097,000) - | |
Net cash (used in) investing activities | (137,566,581) | (6,097,000) | |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Long term loans | - | (933,500) | |
Proceeds from director loan | 118,000,000 | - | |
Current portion of long term loans | (1,308,500) | (925,500) | |
Short term finances | (23,451,000) | (4,100,147) | |
Net cash from / (used in) financing activities | 93,240,500 | (5,959,147) | |
Net increase in cash and cash equivalents | 12,126,216 | 13,076,909 | |
Cash and cash equivalents at the beginning of year | 3,090,932 | 3,954,719 | |
Cash and cash equivalents at the end of the period | 15,217,148 | 17,031,628 |
The annexed notes form an integral part of this condensed interim financial information.
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CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER
DIRECTOR
3rd Quarterly Report
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE QUARTER AND 9 MONTHS PERIOD ENDED MARCH 31, 2026 (UN-AUDITED)
Particulars | Share Capital | Capital Reserves | Revenue Reserves | Total Share Capital and Reserve | ||||||
surplus on revaluation of Property plant | Fair value Reserve of Financial Assets at FVOCI | Other Capital Reserve | Total Capital Reserve | Loan from Director | Other Revenue Reserve | Accumulated Loss | Total Revenue Reserve | |||
and equipment | ||||||||||
Balance as at Jul 01, 2024 | 129,963,040 | 214,382,376 | 7,079,978 2,274,287 | 223,736,641 - | 7,000,000 (76,546,633) | (69,546,633) | 284,153,048 | |
Net Profit for the 9 months period ended Mar 31, 2024 | (2,752,814) | (2,752,814) | (2,752,814) | |||||
Other comprehensive incone for the period | 1,338,103 | 1,338,103 | - | 1,338,103 | ||||
Incremental depreciation for the year due to surplus on revaluation of property, plant & equipment transferred to equity | (4,982,959) | (4,982,959) | 4,982,959 | 4,982,959 | - | |||
Surplus realized on disposal of plant & machinery | - | - | - | - | - | |||
Balance as at Mar 31, 2024 129,963,040 | 209,399,417 | 8,418,081 2,274,287 | 220,091,785 | 7,000,000 (74,316,488) | (67,316,488) | 282,738,337 | ||
Net Profit for the year ended Jun 30, 2025 - | - | 13,857,875 | 13,857,875 | 13,857,875 | ||||
Other comprehensive incone for the year | 8,202,993 | 8,202,993 | (7,032,167) | (7,032,167) | 1,170,826 | |||
Incremental depreciation for the year due to surplus on revaluation of property, plant & equipment transferred to equity | (6,643,944) | (6,643,944) | 6,643,944 | 6,643,944 | - | |||
Surplus realized on disposal of plant & machinery | - | - | - | - | - | |||
Net Profit for 9 months ended Mar 31, 2025 reversed Total comprehensive incone for 9 months period ended Mar 31 2024 reversed | (1,338,103) | (1,338,103) | 2,752,814 | 2,752,814 | 2,752,814 (1,338,103) | |||
Incremental depreciation for the year on surplus on revaluation of property for 9 months reversed | 4,982,959 | 4,982,959 | (4,982,959) | (4,982,959) | - | |||
Surplus realized on disposal of plant & machinery for 9 months reversed | - | - | - | - | - | |||
Loan from Director | 120,000,000 | 120,000,000 | ||||||
Balance as at Jun 30, 2025 129,963,040 | 207,738,432 | 15,282,971 2,274,287 | 225,295,690 | 120,000,000 | 7,000,000 (63,076,981) | (56,076,981) | 419,181,749 | |
Balance as at Jul 01, 2025 129,963,040 | 207,738,432 | 15,282,971 2,274,287 | 225,295,690 | 120,000,000 | 7,000,000 (63,076,981) | (56,076,981) | 419,181,749 | |
Net Profit for the 9 months period ended Mar 31, 2026 | 9,760,004 | 9,760,004 | 9,760,004 | |||||
Other comprehensive incone for the period | (7,050,488) | (7,050,488) | - | (7,050,488) | ||||
Incremental depreciation for the year due to surplus on revaluation of property, plant & equipment transferred to equity | (4,538,829) | (4,538,829) | 4,538,829 | 4,538,829 | - | |||
Loan from Director | 118,000,000 | 118,000,000 | ||||||
Balance as at Mar 31, 2026 129,963,040 | 203,199,603 | 8,232,483 2,274,287 | 213,706,373 | 238,000,000 | 7,000,000 (48,778,148) | (41,778,148) | 539,891,265 | |
The annexed notes form an integral part of this condensed interim inancial information.
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CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER
DIRECTOR
3rd Quarterly Report
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE NINE MONTHS PERIOD ENDED MARCH, 31 2026
LEGAL STATUS AND OPERATIONS
Hala Enterprises Limited ("the Company") was incorporated in Pakistan as a Private Limited Company and was subsequently converted into a public limited company. The registered office of the Company is located at 17.5 KM Sheikhupura Road, Lahore and its shares are listed on Pakistan Stock Exchange. The Company is primarily engaged in manufacturing and sale of terry towels, kitchen towels and terry cloth.
BASIS OF PERPRATION
The condensed interim financial information is un-audited and has been prepared in accordance with the requirements of international financial reporting standards (IFRS) IAS 34 - 'Irterim Financial Reporting ' and provisions of and directives issued under the companies Act 2017. This condensed interim financial information does not include all of the information and disclosures required for annual financial statements, and should be read in conjunction with the financial statements of the company for the year ended June 30, 2025
This condensed interim financial information is being submitted to the shareholders as required by the listing regulation of Pakistan stock Exchange and section 237 of the Companies Act ,2017
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and method of computation which have been used in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the preceding year ended June 30, 2025
DATE OF AUTHORIZATION FOR ISSUE
This condensed interim financial information was authorized for issue on April 30, 2026 by the board of directors of the company
General
Where necessary, previous figures have been re-arranged for the purpose of fair comparison.
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CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER
DIRECTOR
W Halo
Enterprises Limited
J7.5 km Sheikhupura Road, Lahore - PK Tel: + 92 (42) 3797 0130, 3797 0230
Fax: + 92 (42) 3797 0681
E-mail: corporate@halaenterprises.com www.halaenterprises.com www.terrytowels.org
OEKO-TEX@