Shaffi Chemical Industries Limited has reported a significant financial turnaround for the first quarter ended September 30, 2026, moving back into profitability after recording a loss during the corresponding period last year. The company’s latest quarterly financial results highlight substantial growth in sales, improved gross profit and a notable reduction in finance costs.
According to the company’s unaudited quarterly report, net sales increased to Rs. 13.14 million during the quarter, compared with approximately Rs. 5.99 million in the same period of the previous year. This represents growth of around 119%, reflecting improved business activity and stronger revenue generation.
The company’s gross profit also increased to Rs. 2.82 million, compared with Rs. 1.37 million in the corresponding quarter last year. However, higher administrative and other operating expenses affected operating profitability. Operating profit stood at Rs. 676,654, against Rs. 890,821 in the same period last year.
One of the most encouraging developments was the substantial reduction in finance costs. Finance costs declined to approximately Rs. 10,483 from Rs. 1.47 million in the corresponding period last year. This improvement helped the company move into positive territory despite lower operating profit.
As a result, Shaffi Chemical Industries recorded a profit before taxation of Rs. 666,171, compared with a loss of Rs. 580,272 in the previous year’s corresponding quarter. After accounting for taxation, the company reported a net profit of Rs. 473,441, against a net loss of Rs. 580,272.
Earnings per share also improved to Rs. 0.04, compared with a loss per share of Rs. 0.05 in the same period last year.
Business Strategy and Future Outlook
In its directors’ report, the company highlighted its focus on business diversification, operational improvements and strengthening its market position. Management is also working on improving production capacity, exploring new business opportunities and maintaining compliance with applicable regulatory requirements.
The company has also referred to its ongoing corporate and strategic initiatives, including diversification efforts and regulatory processes involving the Securities and Exchange Commission of Pakistan and the Pakistan Stock Exchange.
Management expressed appreciation to employees, workers, shareholders and other stakeholders for their continued support and commitment.
A Positive Start to the Financial Year
Shaffi Chemical Industries’ first-quarter results indicate an encouraging recovery, particularly in revenue generation and the return to profitability. The substantial decline in finance costs has also played an important role in improving the company’s bottom line.
Going forward, the company’s ability to sustain revenue growth, manage operating expenses and successfully implement its diversification strategy will be important factors in determining its financial performance.
While the latest results represent a positive development, investors will be watching upcoming quarterly reports to assess whether the company can maintain its improved financial position throughout the remainder of the financial year.
