Shaffi Chemical Industries Returns to Profit in March Quarter as Sales Nearly Double

KARACHI: Shaffi Chemical Industries Limited (PSX: SCIL) reported a return to profitability for the quarter ended March 31, 2026, driven by a sharp increase in sales and improved operating performance, according to the company’s latest financial results.

The company posted a net profit after tax of Rs1.20 million for the quarter, compared with a loss of Rs17.18 million in the corresponding period last year. Earnings per share (EPS) improved to Rs0.10, compared with a loss per share of Rs1.43 a year earlier.

Quarterly net sales surged to Rs10.63 million, up from Rs6.65 million in the same quarter of the previous year. The increase in revenue helped lift the company’s gross profit to Rs2.04 million, more than triple the Rs0.63 million recorded in the corresponding quarter of 2025.

For the nine-month period ended March 31, 2026, Shaffi Chemical Industries also returned to profitability, reporting net earnings of Rs579,005, compared with a loss of Rs16.41 million during the same period last year. Nine-month sales climbed to Rs35.95 million, significantly higher than Rs12.19 million recorded a year earlier, reflecting stronger business activity.

The company’s balance sheet also showed an improvement in liquidity. Total assets increased to Rs91.11 million as of March 31, 2026, compared with Rs52.60 million at the end of June 2025. Cash and bank balances rose to Rs3.43 million, while stock-in-trade and trade receivables also increased alongside higher sales.

Operating cash flows remained positive during the nine-month period, with the company generating net cash from operating activities of Rs2.29 million, reflecting improved working capital management despite higher finance costs.

The board of directors did not recommend any interim cash dividend, bonus shares, or right shares for the quarter ended March 31, 2026.

Although accumulated losses remain on the balance sheet, the latest quarterly results indicate that Shaffi Chemical Industries has made progress in restoring profitability through stronger sales growth and improved operational performance.