Dadex Eternit Limited
By PSX Investors Zone · Updated October 22, 2026
Dadex Eternit Limited (PSX: DADX) is a Pakistani construction-materials manufacturer incorporated in 1959. Its business includes piping systems, construction products and allied materials made from cement-based, rubber and plastic materials, along with the merchandising of imported pipe fittings and accessories. The company reported a return to annual profitability in FY2026 after losses in the previous three financial years. Dadex appeared as Shariah-compliant in the PSX-KMI All Share Islamic Index screening published in May 2026. However, PSX displays a Risk Warning Alert concerning continuing regulatory violations and potential suspension or delisting, making this a key consideration for investors.
Company Overview
Dadex Eternit Limited (PSX: DADX) is a Pakistan Stock Exchange-listed company incorporated on April 13, 1959. It manufactures and sells construction materials, including piping systems and allied products, and also markets imported pipe fittings, accessories and other building products.
According to its PSX company profile, its product materials include chrysotile cement, rubber and plastics. The company operates in Pakistan's construction-materials supply chain, serving demand associated with building, infrastructure and piping applications.
Official website: https://www.dadex.com
PSX company profile: https://dps.psx.com.pk/company/DADX
Business Activities
Dadex's stated business activities include:
- Manufacturing and selling piping systems and related construction products.
- Producing allied products using cement-based, rubber and plastic materials.
- Merchandising imported pipe fittings, accessories and other building products.
Demand for construction materials can be influenced by infrastructure spending, building activity, customer purchasing power, raw-material costs, energy prices and competitive pressures. These factors can affect sales volumes, margins and working-capital requirements.
Financial Performance
According to the financial summary published on the PSX company profile, Dadex reported the following annual results:
| Financial indicator | FY2026 | FY2025 |
|---|---|---|
| Sales | Rs. 959.910 million | Rs. 780.943 million |
| Profit/(loss) after tax | Rs. 479.682 million | Loss of Rs. 407.047 million |
| Earnings per share (EPS) | Rs. 44.56 | Loss per share of Rs. 37.82 |
Source: PSX financial summary. Figures are presented in rupees; financial statement figures may differ where standardized data is used.
Sales increased in FY2026, while the company moved from a substantial annual loss to a reported profit. This is a notable improvement, but one profitable year alone does not establish that the turnaround is sustainable. Investors should review the full annual report to understand the drivers of profit, including operating performance, other income, finance costs, exceptional items and cash flows.
Financial source: https://dps.psx.com.pk/company/DADX
Shariah Compliance Status
Dadex Eternit Limited was classified as Shariah-compliant in the PSX-KMI All Share Islamic Index screening published on May 29, 2026, using financial accounts up to December 31, 2025.
The screening notice reported these ratios:
| Screening measure | Reported ratio |
|---|---|
| Debt to total assets | 4.34% |
| Non-compliant investments to total assets | 0.00% |
| Non-compliant income to total revenue | 0.00% |
| Illiquid assets to total assets | 21.58% |
These figures relate to the stated screening period and should not be treated as permanent confirmation of compliance. Shariah status can change when a new review is published or financial ratios change. The screening notice used the criteria shown in that review; investors should check the latest official screening before making a decision.
Official screening notice: https://dps.psx.com.pk/download/attachment/277899-1.pdf
Important Risk Warning Alert (RWA)
PSX displays a Risk Warning Alert on Dadex Eternit Limited's company profile. The notice states that the company is in continuous violation of Clauses 5.11.1 or 5.11.2 and carries a risk of suspension of trading or delisting from the Exchange, subject to PSX terms and conditions.
This is a material regulatory risk and should be considered separately from the company's Shariah screening status and reported financial results. Shariah-compliant classification does not remove regulatory, liquidity, financial or delisting risks.
Investors should consult the latest PSX announcements and company disclosures to understand the status of the cited violations and whether any remedial action has been reported.
Check the official PSX profile for the latest alert: https://dps.psx.com.pk/company/DADX
Dividends and Corporate Actions
Dividend declarations, bonus shares, rights issues and other corporate actions should be confirmed through official company announcements and PSX payout records. Do not assume that a profitable financial year automatically means a dividend has been declared or paid.
Official source: https://dps.psx.com.pk/company/DADX
What Investors Should Monitor
Before evaluating DADX, investors may wish to review:
- Profit sustainability: Whether FY2026 profitability is supported by recurring operating earnings.
- Cash flow: Whether reported profits translate into cash generated from operations.
- Working capital: Receivables, inventory and payment cycles that can affect liquidity.
- Regulatory developments: Updates concerning the PSX Risk Warning Alert and the relevant listing-regulation clauses.
- Shariah screening: The latest official PSX-KMI All Share Islamic Index list and screening methodology.
- Corporate announcements: Audited results, board decisions and any confirmed dividend or other corporate action.
Frequently Asked Questions
What is Dadex Eternit Limited's PSX symbol?
Its trading symbol is DADX.
Is Dadex Eternit Limited Shariah-compliant?
It was classified as compliant in the PSX-KMI All Share Islamic Index screening published on May 29, 2026, based on accounts to December 31, 2025. Investors should verify the latest screening before relying on that status.
Did Dadex report a profit in FY2026?
The PSX financial summary reports profit after tax of Rs. 479.682 million and EPS of Rs. 44.56 for FY2026, compared with a loss in FY2025.
What is the main risk highlighted by PSX?
The PSX profile displays a Risk Warning Alert citing continuous violations of specified listing-regulation clauses and the potential for suspension or delisting.
Does Shariah-compliant status mean the stock is low-risk?
No. Shariah screening addresses specified business and financial criteria. It does not guarantee profitability, protect the share price or eliminate regulatory and liquidity risks.
Investor Note
This profile is for educational and research purposes. Company results, regulatory status and Shariah screening can change. Refer to official PSX disclosures, company reports and the latest screening notices before making an investment decision.
This profile is for educational purposes and is not a recommendation to buy or sell any security.