Cherat Packaging Limited
By PSX Investors Zone · Updated October 22, 2026
Cherat Packaging Limited (PSX: CPPL) is a Pakistani packaging manufacturer incorporated in 1989. Its business includes paper sacks, polypropylene bags, SOS/carrier bags and flexible packaging materials supplied to industries such as cement, food, beverages, pharmaceuticals and consumer goods. For the financial year ended 30 June 2026, the company reported sales of Rs.15.09 billion, profit after tax of Rs.651.01 million and earnings per share of Rs.13.26. It was classified as Shariah-compliant in the PSX-KMI All Share Islamic Index screening effective 5 June 2026, based on accounts to 31 December 2025. Investors should also note that the official PSX profile displays a Risk Warning Alert relating to continuous regulatory violations and potential trading suspension or delisting. Review the latest regulatory disclosures, financial statements and Shariah screening before making investment decisions.
Company Overview
Cherat Packaging Limited (PSX: CPPL) is a Pakistani packaging manufacturer incorporated in 1989. The company produces paper sacks, polypropylene bags and flexible packaging materials for industrial and consumer-product applications.
Its products serve multiple sectors, including cement, food, beverages, pharmaceuticals, home and personal care, sugar and chemicals. Packaging demand is linked to the production and distribution activity of these customer industries, making customer demand, input costs, operational efficiency and competition important factors in the company's performance.
The company is part of the Ghulam Faruque Group. Its registered office is located at Betani Arcade, Jamrud Road, Peshawar.
Official sources:
Business Activities
Cherat Packaging operates in several packaging categories:
- Paper sacks: Packaging solutions used particularly in cement and other industrial applications.
- Polypropylene bags: Woven packaging products for industrial and commercial customers.
- SOS and carrier bags: Packaging formats used for a variety of applications.
- Flexible packaging: Packaging materials produced using extrusion, printing and related processes.
The company's performance depends partly on demand from its major customer industries. Cement-sector activity can influence demand for industrial sacks, while changes in food, consumer goods and other manufacturing activity can affect flexible packaging demand.
Key cost considerations include paper and polymer prices, energy, transportation, labour and manufacturing overheads. Investors should examine whether the company can pass cost increases on to customers without losing sales volume or market share.
Financial Performance — FY2026
For the financial year ended 30 June 2026, Cherat Packaging reported the following annual figures:
| Financial indicator | FY2026 | FY2025 |
|---|---|---|
| Sales | Rs.15.09 billion | Rs.13.01 billion |
| Profit after tax | Rs.651.01 million | Rs.356.43 million |
| Earnings per share | Rs.13.26 | Rs.7.26 |
Source: PSX company financial summary and FY2026 financial results. Amounts are rounded.
Sales increased by approximately 15.97% year over year, while profit after tax increased by approximately 82.64%. EPS also improved, rising from Rs.7.26 to Rs.13.26.
The improvement in profit was stronger than sales growth, so investors should assess the underlying reasons through the audited annual report, including gross margins, finance costs, other income, taxes and operating expenses. A single year's improvement does not guarantee that the same growth rate will continue.
Sources:
- PSX Financial Results and Announcements
- FY2026 Results Announcement
- Company Annual Report and Information
Shariah Compliance Status
Cherat Packaging Limited was classified as Shariah-compliant in the PSX-KMI All Share Islamic Index screening effective 5 June 2026, based on financial statements to 31 December 2025.
The reported screening ratios were:
| Shariah screening criterion | Reported ratio | Screening benchmark |
|---|---|---|
| Debt to total assets | 16.30% | Below 37% |
| Non-compliant investments to total assets | 0.00% | Below 33% |
| Non-compliant income to total revenue | 0.00% | Below 5% |
| Illiquid assets to total assets | 76.52% | At least 25% |
These figures apply to the stated screening period. They should not be presented as a guarantee of future eligibility because financial ratios and official index classifications can change.
Investors following a Shariah-compliant strategy should verify the latest PSX-KMI screening before investing and consult a qualified Shariah adviser regarding any applicable purification guidance.
Sources:
Dividend and Shareholder Returns
For FY2026, the board recommended a final cash dividend of Rs.3.00 per share, in addition to the interim cash dividend of Rs.1.00 per share already paid. The PSX company profile lists a notice dated 8 October 2026 for credit of the final cash dividend.
This represents a total FY2026 cash dividend of Rs.4.00 per share, subject to the company's official entitlement and payment records. Investors should refer to the latest company and PSX announcements for the relevant book-closure dates, entitlement details and payment confirmation.
Dividend history can help investors understand the company's distribution policy, but future payments depend on profitability, cash flow, investment needs and board decisions.
Source: FY2026 Results Announcement
Important PSX Risk Warning Alert
The official PSX company profile displays a Risk Warning Alert (RWA) for Cherat Packaging Limited. The alert states that the company is in continuous violation of requirements specified under clauses 5.11.1 or 5.11.2 of PSX regulations and carries a risk of suspension of trading or delisting from the Exchange.
This is a material regulatory consideration and should be clearly disclosed to readers. Investors should check the latest PSX notices and company disclosures to understand the status and implications of the alert.
Shariah-compliant classification does not remove regulatory, liquidity, operational or investment risks.
Official reference: PSX CPPL Company Profile and Risk Warning Alert
What Investors Should Monitor
Before evaluating CPPL shares, investors may wish to review:
- Customer-industry demand: Particularly cement and other industrial sectors that use packaging sacks.
- Raw-material costs: Changes in paper, polypropylene and other packaging inputs.
- Profit margins: Whether improved profitability is sustainable as input costs and competition change.
- Cash flow and borrowings: Whether earnings are supported by operating cash generation and a manageable financing burden.
- Dividend sustainability: Cash available for future distributions after operating and capital requirements.
- Regulatory disclosures: The latest status of the PSX Risk Warning Alert.
- Shariah screening: The company's most recent official screening status.
Frequently Asked Questions
What is the PSX symbol of Cherat Packaging Limited?
Its Pakistan Stock Exchange ticker is CPPL.
Is Cherat Packaging Limited Shariah-compliant?
It was classified as Shariah-compliant in the PSX-KMI All Share Islamic Index screening effective 5 June 2026, based on accounts to 31 December 2025. Investors should confirm its status in the latest official screening.
What does Cherat Packaging Limited manufacture?
The company manufactures paper sacks, polypropylene bags, SOS/carrier bags and flexible packaging materials.
How did the company perform in FY2026?
It reported sales of approximately Rs.15.09 billion, profit after tax of Rs.651.01 million and EPS of Rs.13.26 for the year ended 30 June 2026.
Does CPPL have a PSX regulatory warning?
Yes. The official PSX profile displays a Risk Warning Alert concerning continuous regulatory violations and possible suspension or delisting. Check the PSX page for the latest status.
Disclaimer
This profile is for educational and informational purposes only and is not a recommendation to buy or sell shares. Financial results, dividend information, regulatory status and Shariah screening may change. Verify the latest official disclosures before making investment decisions.
This profile is for educational purposes and is not a recommendation to buy or sell any security.