Sazgar Engineering Works Limited (SEWL) closed the financial year ended June 30, 2026, on a notably stronger footing, with substantial growth in sales, profitability, assets and shareholders’ equity. The company’s latest financial statements point to a year of significant expansion, while continued investment in property, plant and equipment highlights its focus on strengthening future capacity.

Sales Growth Sets the Tone

According to the statement of profit or loss, Sazgar Engineering Works recorded net sales of Rs. 191.72 billion in FY2026, compared with Rs. 108.69 billion in the previous year. This represents growth of roughly 76%, showing a major improvement in the scale of the company’s business.

The increase in sales also translated into a stronger gross profit. Gross profit reached Rs. 46.48 billion, up from Rs. 31.64 billion in FY2025. The company therefore managed to expand its earnings alongside the substantial increase in revenue.

Profitability Improves Sharply

Sazgar’s operating performance also strengthened during the year. Operating profit climbed to approximately Rs. 36.45 billion, compared with Rs. 25.61 billion a year earlier.

After accounting for other income and finance costs, profit before taxation stood at Rs. 38.65 billion, compared with Rs. 26.74 billion in FY2025.

The company reported net profit of Rs. 23.60 billion for FY2026, substantially higher than the Rs. 16.34 billion recorded in the preceding year. On a year-on-year basis, net profit increased by about 44%.

This improvement was also reflected in earnings per share. Basic and diluted EPS from continuing operations rose to Rs. 390.51, compared with Rs. 270.26 in FY2025.

Balance Sheet Nearly Doubles in Size

The company’s financial position also expanded considerably.

Total assets stood at Rs. 81.65 billion as of June 30, 2026, compared with Rs. 41.74 billion at the end of FY2025. That represents an increase of around 96% in one year.

A major contributor was property, plant and equipment, which increased to Rs. 23.02 billion from Rs. 7.94 billion. This substantial rise suggests that the company continued to invest heavily in its operating infrastructure and productive capacity.

Current assets also increased to Rs. 58.51 billion, compared with Rs. 33.71 billion previously. Stock-in-trade reached Rs. 42.07 billion, while trade debts stood at approximately Rs. 8.90 billion.

Shareholders’ Equity Strengthens

Sazgar’s shareholders’ equity increased to approximately Rs. 43.02 billion at June 30, 2026, compared with Rs. 23.71 billion a year earlier.

The increase came despite sizeable dividend distributions during the year. The statement of changes in equity shows four cash dividend distributions totaling approximately Rs. 4.23 billion during FY2026.

The company ended the year with an unappropriated revenue reserve of approximately Rs. 41.85 billion, compared with Rs. 22.55 billion at June 30, 2025.

Strong Operating Cash Generation

Sazgar also generated considerable cash from its core operations. Cash generated from operations was approximately Rs. 24.94 billion during FY2026.

After payments including finance costs, taxation and other operating-related items, net cash generated from operating activities stood at around Rs. 9.60 billion.

The company, however, made significant investments during the year. Cash used in investing activities amounted to approximately Rs. 15.64 billion, largely reflecting purchases of property, plant and equipment.

Financing activities generated net cash of around Rs. 3.43 billion, supported by proceeds from long-term financing and profit on bank deposits, partly offset by dividend payments and financing repayments.

Investment Comes With a Short-Term Cash Impact

Despite strong operating performance, cash and cash equivalents declined from Rs. 16.60 billion at the beginning of FY2026 to Rs. 13.98 billion at year-end.

The reduction appears closely linked to the company’s sizeable investment in property, plant and equipment and its dividend distributions. Rather than pointing to weak operations, the cash-flow statement shows that the company continued generating substantial cash from its underlying business while simultaneously deploying funds toward investment and shareholder returns.

A Stronger Platform for the Next Phase

The FY2026 numbers present a company that has expanded rapidly on several fronts. Sales increased sharply, profitability reached new levels, assets almost doubled, and shareholders’ equity strengthened considerably.

At the same time, the significant increase in property, plant and equipment indicates that Sazgar Engineering Works is committing resources to its operational infrastructure. The challenge going forward will be to convert these investments into sustained revenue and profitability while maintaining healthy cash generation and financial discipline.

Overall, Sazgar Engineering Works’ FY2026 financial statements reflect a year of strong business expansion, higher profitability and aggressive investment. With net profit crossing Rs. 23.6 billion and sales approaching Rs. 192 billion, the company enters the new financial year from a substantially larger financial base than it had just one year earlier.