Merit Packaging swings to Rs41m loss in 1QFY27

Merit Packaging Limited reported a Rs41.25m loss for the quarter to September 30, 2026, reversing the Rs472.00m profit recorded a year earlier. Its loss per share was Rs0.21, whereas the comparable quarter had produced earnings per share of Rs2.36, Mettis Global reported.

The prior-year result included a Rs505.66m gain from selling assets held for sale, which was absent this time. Revenue contracted 15.90% to Rs787.80m, while gross profit dropped 47.11% to Rs34.30m; operating performance also shifted from a Rs12.65m profit to a Rs13.11m loss. Reduced finance charges, down 47.03% to Rs18.29m, and a lower levy provided partial relief, but did not prevent the quarterly loss.

The results show the combined effect of weaker sales and the missing disposal gain on the packaging company's earnings. Investors following Merit Packaging and the Paper & Board sector will note that these factors outweighed lower financing costs.