FosRich Company Limited’s revenue fell 51 per cent to J$415.2 million in the first quarter of 2026, from J$852.9 million a year earlier, and the company’s own filings point to two pressures: a collapse in solar panel prices and a shortage of cash to buy stock.

The company does not publish revenue by product segment in its quarterly reports. Its first-quarter management discussion and analysis lists the main revenue drivers as solar, hardware, LED, PVC and wiring devices, without assigning a figure to any of them.

The one cause management names is solar. The filing says turnover continues “to be affected by the substantial fall in solar panel cost” on world markets. Lower panel prices reduce the dollar value of each system sold, so revenue can fall even where volumes hold. The company gave no volume data.

Margins indicate that price is only part of the picture. Gross profit fell to J$141.3 million from J$305.6 million, but the gross margin slipped less than two percentage points, to 34.0 per cent from 35.8 per cent. A margin that holds while revenue halves is consistent with fewer sales across the business and not only cheaper panels.

The balance sheet shows a company carrying less stock. Inventories stood at J$1.84 billion at March 31, down 23 per cent from J$2.38 billion a year earlier. The filing describes a “continued liquidation of inventories” and a plan to reduce the number of stock items further.

Management links restocking to financing. Proceeds of the planned sale-and-leaseback of its real estate are to be used to liquidate loans and “provide cash needed to finance inventory purchases,” the filing says. Cash and short-term deposits were J$99.7 million at the end of March. Operations consumed J$98.3 million in the quarter, against an inflow of J$201.5 million in the first quarter of 2025.

Credit to customers has also been tightened. FosRich said it had re-evaluated all credit relationships, cut limits, shortened terms, and moved some inventory items to seven-day credit or cash. Receivables fell 23 per cent year on year to J$494.0 million. Tighter terms reduce collection risk but can cost sales to contractors and developers who buy on credit.

Payables moved the other way, rising 15 per cent to J$1.66 billion. The company said global suppliers had offered more favourable credit terms.

Costs have not fallen in line with sales. Administrative expenses were J$307.0 million, down 9 per cent, and more than twice the quarter’s gross profit. The net loss widened to J$178.8 million from J$68.6 million.

Funds due from related parties were J$1.53 billion at March 31, exceeding shareholders’ equity of J$1.31 billion.

The first-quarter result equates to about J$138 million a month. FosRich has since told its bond trustee that monthly revenue is under J$150 million, down from more than J$300 million, which suggests no recovery through the third quarter.

Two revenue initiatives in the first-quarter filing remain to be tested: a new Molynes Road superstore that management expected to open by the end of the third quarter, and partnerships with property developers.

The third-quarter report is due by November 14.