Transmission of 1st Quaterly Report for the period ended March 31, 2026

01

Quarterly Report March 31, 2026

09

Notes to the Condensed Interim Financial Information (Un-audited)

08

Condensed Interim Statement of Cash Flow (Un-audited)

07

Condensed Interim Statement of Changes in Equity (Un-audited)

Condensed Interim Statement of Comprehensive Income (Un-audited) 06

05

Condensed Interim Statement of Profit or Loss (Un-audited)

04

Condensed Interim Statement of Financial Position (Un-audited)

03

Directors' Review

02

Company Information

Content

Company Information

Board of Directors

Dr. Salomon Jacobus Van Rooijen Chairman, Non-Executive Director

Mr. Muhammad Irfanulhaq

Executive Director & Chief Executive Officer

Mrs. Feriel Ali Mehdi Non-Executive Director

Mr. Mubashir Hasan Ansari Non-Executive Director

Mr. M. Salman Husain Chawala Non-Executive Director

Mr. Ahsan Rashid

Independent, Non-Executive Director

Mrs. Faeyza Khan Faheem Independent, Non-Executive Director

Board Nomination Committee

Mrs. Feriel Ali Mehdi Chairman

Dr. Salomon Jacobus Van Rooijen Member

Mr. Muhammad Irfanulhaq Member

Board Audit & Risk Committee

Mrs. Faeyza Khan Faheem Chairperson

Mr. Mubashir Hasan Ansari Member

Mr. M. Salman Husain Chawala Member

Human Resource and Remuneration Committee

Mr. Ahsan Rashid Chairman

Mr. Muhammad Irfanulhaq Member

Mr. M. Salman Husain Chawala Member

Statutory Auditors

BDO Ebrahim & Co. Chartered Accountants

Chief Financial Officer Mr. Ata-ur-Rehman Shaikh Company Secretary Mr. Muhammad Shahid

Secretary HR&R Committee

Mr. Aneel Arshad Ali Head of Internal Audit Mr. Syed Abid Raza Rizvi Legal Advisors

A. Qadir & Company

Registered Office

Ground Floor, Bahria Complex III,

M. T. Khan Road, Karachi - Pakistan. Tel: +9221 35630251-60

Fax: +9221 35630266

Website: https://www.zil.com.pk Email: Info@zil.com.pk

Bankers

Dubai Islamic Bank Habib Bank Limited MCB Bank Limited Meezan Bank Limited

National Bank of Pakistan Limited Soneri Bank Limited

United Bank Limited Standard Chartered Bank Bank of Khyber

Shares Registrar

THK Associates (Pvt) Limited

Plot No. 32, Jami Commercial Street 2, D.H.A., Phase VII, Karachi.

Ph: (021) 111-000-322

02

Quarterly Report March 31, 2026

The Board of Directors of ZIL Limited is delighted to present the Company's unaudited financial results for the three-month period ended March 31, 2026.

Company's Operating Performance:

The Company achieved gross sales of PKR 2.1 billion, representing a 22% year-on-year increase. Building on the momentum of 2025, this consistent growth reflects strong strategic success and effective execution within a competitive landscape.

Economic climate remained steady yet demanding, our focus on operational excellence continued to yield results, leading to a gross profit of PKR 446 million. To ensure long-term value creation, we remain committed to monitoring market shifts and adapting our strategic plans accordingly.

To drive these results, we increased marketing investments in alignment with our growth targets. Operating costs rose, primarily due to strategic investments in sales and distribution personnel, however, the Company successfully maintained a positive bottom line and reported an after-tax profit of PKR 1 million.

Financial Performance at a Glance

Future Outlook

Pakistan entered 2026 with early signs of stabilization and recovery, with a promising short to medium term outlook, but the recent global conflict has introduced a major external shock, with short-term pressures from higher oil prices, inflation, and external account stress.

These geopolitical tensions and conflict conditions have contributed to increased market fragility, impacting the overall economic environment in which the Company operates and affecting everyone in the industry. The conflict has exerted upward pressure on prices, particularly in key raw & packaging materials, and logistics costs. This has resulted in elevated inflationary trends and increased cost of operations across sectors. The above-mentioned factors may potentially affect the future profitability of the Company.

The management of the Company stays focused on employing decisive, high-impact measures to address market challenges. Increasing value chain efficiency, boosting brand equity, and establishing strategic alliances with our customers and suppliers are at the core of our approach.

Acknowledgement

The Board would like to express its heartfelt gratitude to the employees and leadership team of the Company for their dedication and hard work, which have been significant for strengthening organizational performance. The Board further expresses its appreciation to the Company's valued business partners for their ongoing collaboration and trust, including distributors, financial institutions, vendors, customers, and other stakeholders.

For and on behalf of the Board of Directors

Karachi: April 23, 2026 Muhammad Irfan-ul-Haq

CEO / Director

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Quarterly Report March 31, 2026

04

Quarterly Report March 31, 2026

Director

Chief Executive Officer

Chief Financial Officer

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

400,000

61,226

986,577

6,000

341,082

1,333,659

10,244

174,204

206,461

141,487

532,396

1,133,453

40,349

179,894

31,846

1,580

1,387,122

3,314,403

400,000

61,226

981,308

6,000

347,690

1,334,998

34,523

180,703

195,762

131,334

542,321

1,113,241

46,544

40,419

31,846

1,580

1,233,629

3,172,174

16

17

18

15

649,197

12,784

1,304,303

49,960

803 2,017,047

169

709,301

148,766

34,870

126,250

100,000

178,000

1,297,356

3,314,403

610,974

11,344

1,295,129

52,813

815 1,971,075

56

761,033

110,577

23,976

107,907

-197,550

1,201,099

3,172,174

10

11

12

13

14

2026 2025

(Un-audited) (Audited)

Note (Rs. in '000)

7

8

9

ASSETS

NON CURRENT ASSETS

Property, plant and equipment Intangible asset

Investment property Long term deposits

Long term loans to employees

CURRENT ASSETS

Stores and spares Stock-in-trade Trade debts

Advances, deposits, prepayments and other receivables

Advance taxation Short term investments

Cash and bank balances

TOTAL ASSETS

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital

40,000,000 (December 31, 2025: 40,000,000)

ordinary shares of Rs. 10/- each

Issued, subscribed and paid-up capital Capital reserves

Surplus on revaluation of property, plant and equipment Revenue reserves

General reserves Unappropriated profit

NON-CURRENT LIABILITIES

Long term loan Deferred taxation Deferred staff liabilities Lease liabilities

CURRENT LIABILITIES

Trade and other payables

Current maturity of long term liabilities Contract liabilities

Short term borrowings Unclaimed dividends

CONTINGENCIES AND COMMITMENTS TOTAL EQUITY AND LIABILITIES

March 31, December 31,

As at March 31, 2026

Quarter ended

March 31, March 31,

2026 2025

Note (Rs. in '000)

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

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Quarterly Report March 31, 2026

06

Quarterly Report March 31, 2026

Director

Chief Executive Officer

Chief Financial Officer

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

1,123

1,339

Total comprehensive income for the period

-

-

Other comprehensive income for the period

(Rs. in '000)

1,339 1,123

Profit for the period

Quarter ended

March 31, March 31,

2026 2025

61,226

07

Quarterly Report March 31, 2026

986,577

6,000 341,082

347,082 1,394,885

Total comprehensive income for the period

Profit for the period

Other comprehensive income (OCI) Transferred from surplus on revaluation of property, plant and equipment - net of tax (incremental depreciation)

-

-

-

1,339

1,339

-

1,339

-

(5,269) 5,269

-

-

(5,269)

-

6,608

-5,269

-6,608

-

-

-1,339

Balance as at March 31, 2026 (unaudited)

61,226

981,308

6,000 347,690

353,690 1,396,224

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

1,123

Issued, subscribed and paid up capital

Capital Reserves

Surplus on revaluation of property, plant and equipment

Revenue Reserves

General (Accumu- Total Reserve lated Reserves

loss) / Unappro priated profit

Total

(Rs. in '000)

Balance as at January 01, 2025 - (audited)

61,226

1,033,587

6,000 274,940

280,940 1,375,753

Total comprehensive income for the period

Profit for the period

Other comprehensive income (OCI) Transferred from surplus on revaluation of property, plant and equipment - net of tax (incremental depreciation)

Balance as at January 01, 2026 (audited)

1,123

1,123

Balance as at March 31, 2025 (unaudited)

-

-

-

61,226

(5,275)

(5,275)

-

5,275

6,397

-5,275

6,397

-

-1,123

1,028,312

6,000

281,337

287,337 1,376,876

For the quarter ended March 31, 2026

March 31, March 31,

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

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Quarterly Report March 31, 2026

1. STATUS AND NATURE OF BUSINESS

   ZIL Limited ("the Company") was incorporated as a private limited company in February 1960 under the Companies Act, 1913 (repealed Companies Ordinance, 1984 and now the Companies Act, 2017) and was subsequently converted into a public limited company in November 1986. Its shares are listed on the Pakistan Stock Exchange. The principal activity of the Company is to manufacture and sale of home and personal care products.

2. GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS

1. BASIS OF PREPARATION

   1. Statement of compliance

These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

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Quarterly Report March 31, 2026

• International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standard Board (IASB) as notified under the Companies Act, 2017;

• Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified under the Companies Act, 2017; and

• Provisions of and directives issued under the Companies Act, 2017;

Where provisions of and directives issued under the Companies Act, 2017 differ from the IAS 34, 'Interim Financial Reporting' and IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed.

These condensed interim financial statements do not include all the information and disclosures required for full annual financial statements and should be read in conjunction with the annual audited financial statements of the Company as at and for the year ended December 31, 2025, which have been prepared in accordance with accounting and reporting standards as applicable in Pakistan. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual financial statements.

The comparative statement of financial position presented in these condensed interim financial statements has been extracted from the annual audited financial statements of the Company for the year ended December 31, 2025, whereas the comparative condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of cash flows and condensed interim statement of changes in equity are extracted from the un-audited condensed interim financial statements for the Three months ended March 31, 2025.

This condensed interim financial information are presented in Pakistani rupee ('Rupees' or 'Rs.') which is the functional and presentation currency of the Company.

1. ACCOUNTING STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED APPROVED ACCOUNTING STANDARDS

   1. Standards, amendments and interpretations to accounting standards that are effective in the current period

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Quarterly Report March 31, 2026

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Quarterly Report March 31, 2026

March 31, December 31,

Note 2026 2025

(Un-audited) (Audited)

7.2 Right-of-use assets

(Rs. in '000)

7.3 Capital work in progress

Vehicles

- 45,807

7.3.1 - 45,807

7.3.1 Movement in capital work in progress

Balance at the beginning of the period / year 45,807 51,097

Addition during the period / year 9,109 154,574 Addition/Transfer to Investment Property - (40,076) Transferred to operating fixed asset (54,916) (119,788) Balance at the end of the period / year - 45,807

8 INTANGIBLE ASSETS

Intangible asset - net carrying value

11,344

11,344

12,784

12,784

9 INVESTMENT PROPERTY

Cost

Accumulated depreciation Carrying amount

Remaining lease term (in years)

1,336,404 1,336,404

(41,275) (32,101)

1,295,129 1,304,303

30 31

10 STOCK IN TRADE

Raw material In hand

In transit

Packing material Finished goods

Provision for slow moving inventory

152,725

5,789

158,513

134,554

471,294

764,361

(3,328)

761,033

169,267

15,688

184,955

127,588

400,086

712,629

(3,328)

709,301

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Quarterly Report March 31, 2026

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Quarterly Report March 31, 2026

March 31, December 31,

Note 2026 2025

(Un-audited) (Audited)

(Rs. in '000)

14 CASH AND BANK BALANCES

Cash in hand Cash with banks

• current / collection accounts

• saving accounts

492

89

14.1

197,058 177,911

197,550 178,000

14.1 This carries profit rate at ranges from 9.5% to 10.5% (December 31, 2025: ranges

from 9.5% to 10.5%) per annum.

15.1 The Company had acquired vehicles under diminishing musharaka agreement from First Habib Modaraba. The loan was for a period of five years expiring on March 2031, with an option to purchase the asset at nominal amount. This carries profit at the rate 3 months' KIBOR + 1.75% per annum (December 31,2025: 3 months' KIBOR + 1.75% per annum).

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Quarterly Report March 31, 2026

Note

March 31,

2026

(Un-audited)

December 31,

2025

(Audited)

(Rs. in '000)

1. SHORT TERM BORROWINGS

   From New Future Consumer International LLC 17.1 31,846 31,846

   31,846 31,846

   1. This represents interest free short term loan. The loan is immediately payable pending State Bank of Pakistan approval for repatriation .

2. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      The status of other contingencies are same as disclosed in the annual audited financial statements for the year ended December 31, 2025 except for disclosed below:

      1. On May 21, 2025, an order under section 122(5A) of the Income Tax Ordinance, 2001 was passed by the Additional Commissioner Inland Revenue (ADCIR) for the financial year 2022 (Tax Year 2023) in which certain expenses were disallowed amounting to Rs.

         78.538 million. Disagreeing to the above the company filed an Appeal before the CIR(A) against the alleged order of ADCIR. Appeal heard by CIR(A) and passed order u/s 129(1) of ITO,2001 dated: 31-03-2026. In order the CIR(A) partially allowed the expenses amounting to Rs.16.043 Million and remanded back the remaining issues amounting to Rs.62.495 Million. Following the order passed by CIR(A), the company has decided to file the appeal before Appellate Tribunal Inland Revenue (ATIR). Based on the Company's tax advisor's view, a favourable decision is expected. Accordingly, no provision of above demand, has been made in these financial statements.

      2. On June 05, 2025, an order under section 221/122(5A) of the Income Tax Ordinance, 2001 was passed by the Additional Commissioner Inland Revenue (ADCIR) for the financial year 2023 (Tax Year 2024) in which certain expenses were disallowed amounting to Rs. 25.758 million. Disagreeing to the above the company filed an Appeal before the CIR(A) against the alleged order of ADCIR. Appeal heard by CIR(A) and passed order u/s 129(1) of ITO,2001 dated: 31-03-2026. In order the CIR(A) remanded back all the issues amounting to Rs.25.758 Million. Following the order passed by CIR(A), the company has decided to file the appeal before Appellate Tribunal Inland Revenue (ATIR). Based on the Company's tax advisor's view, a favourable decision is expected. Accordingly, no provision of above demand, has been made in these financial statements.

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Quarterly Report March 31, 2026

18.1.3 On January 01, 2026, the company received a demand notice under section 137 to pay Rs.2.658 million against the payment of Worker Welfare Fund (WWF) by the Deputy Commissioner Inland Revenue (DCIR) for the financial year 2019 (Tax Year 2020), the company has already paid/Adjusted the said amount. Disagreeing to the above the company filed an Appeal before the CIR(A) against the alleged order of DCIR. Based on the Company's tax advisor's view, the said notice is time barred as per ITO 2001 and a favourable decision is expected. Accordingly, no provision of above demand, has been made in these financial statements.

Quarter ended March 31, March 31,

2026 2025

19

SALES - NET

(Un-audited) (Rs. in '000)

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Quarterly Report March 31, 2026

2

2

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Quarterly Report March 31, 2026

1. TRANSACTIONS WITH RELATED PARTIES

   Related parties of the company comprise of the parent company, major shareholders, provident fund, directors,associated company and key management personnel. All the transactions with related parties are entered into at agreed terms in the normal course of business as approved by the Board of directors of the company. Detail of transactions with related parties during the period, other than disclosed elsewhere in the condensed interim financial statements, are as follows:

   1. Names of related parties, nature and basis of relationship

Name of related parties

Nature and Percentage of

Note basis of shareholding in Relationship the Company

22.1.1 Country of incorporation is Dubai, United Arab Emirates (UAE).

Quarter ended

March 31, March 31,

2026 2025

(Un-audited)

22.2 Transactions during the period: (Rs. in '000)

The Chief Executive Officer & certain executives of the company are provided with company maintained cars,furnished and serviced accomodation and medical facilities as per their entitlements

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Quarterly Report March 31, 2026

1. FINANCIAL RISK MANAGEMENT

   The Company's financial risk management objective and policies are consistent with that disclosed in the annual audited financial statements for the year ended December 31, 2025.

2. CORRESPONDING FIGURES

   Corresponding figures have been rearranged and reclassified, wherever necessary for the purpose of comparison and better presentation.

3. GENERAL

   Figures have been rounded off to the nearest of rupees unless otherwise stated.

4. NON ADJUSTING EVENTS

   The board of directors in their meeting held on February 13th 2026 have for the year ended Dec 31, 2025 proposed final cash dividend of Rs 2.5/share (2024: Rs. 2.5 Per share) amounting to Rs 15.307 Million (2024:Rs 15.307 Million), members of the company has approved this dividend in Annual General Meeting held on 16th April 2026 .These financial statements for the period ended March 31, 2026 do not include the effect of proposed cash dividend, which will be recognized in the financial statements for the half year ending June 30, 2026.

5. DATE OF AUTHORIZATION FOR ISSUE

These condensed interim financial statements have been authorized for issue on 23rd April 2026 by the Board of Directors of the Company.

Chief Financial Officer

Chief Executive Officer

Director

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Quarterly Report March 31, 2026