KARACHI: Sapphire Textile Mills Limited reported a strong improvement in its financial performance for the nine months ended March 31, 2026, posting a notable increase in profitability despite a weaker third quarter driven by lower sales and compressed margins. The company disclosed its unaudited financial results following a meeting of its Board of Directors held on April 28, 2026.

For the nine-month period, Sapphire Textile Mills recorded a standalone profit after tax of Rs4.87 billion, up 38% from Rs3.53 billion reported in the corresponding period last year. Earnings per share (EPS) also improved to Rs224.35, compared with Rs162.56 a year earlier.

However, the company’s performance during the third quarter reflected a more challenging operating environment. Quarterly net turnover declined to Rs18.49 billion from Rs24.62 billion in the same quarter last year. As a result, quarterly profit after tax fell to Rs857.7 million, down nearly 47% from Rs1.63 billion, while quarterly EPS dropped to Rs39.54 from Rs74.93.

Despite lower sales, Sapphire Textile Mills maintained healthy operational profitability over the nine-month period. Gross profit stood at Rs6.90 billion, while profit from operations reached Rs9.35 billion, supported by a significant increase in other income and a reduction in finance costs compared with the same period last year.

On the financial position front, the company’s total assets increased to Rs103.48 billion as of March 31, 2026, compared with Rs96.38 billion at the end of June 2025. Shareholders’ equity also strengthened to Rs49.15 billion, reflecting the improvement in earnings during the reporting period.

Cash flow generation also showed marked improvement. Sapphire Textile Mills generated Rs5.57 billion in net cash from operating activities during the nine months, compared with a net cash outflow from operations in the corresponding period of last year, highlighting stronger operational cash generation.

The company stated that both its standalone and consolidated financial statements for the quarter and nine months ended March 31, 2026, have been approved by the Board and will be submitted through the prescribed regulatory channels.