Service Industries Textiles Narrows Quarterly Loss to Rs1.60 Million as Revenue Jumps 34%
Service Industries Textiles Limited (SITL) has reported a significant improvement in its financial performance for the first quarter ended September 30, 2026, as higher revenue and improved gross profit helped the company substantially reduce its net loss compared with the corresponding period last year.
According to the company’s unaudited financial results submitted to the Pakistan Stock Exchange (PSX), revenue increased to Rs448.38 million during the quarter, compared with Rs335.15 million in the same period last year, representing growth of approximately 34%.
The company’s gross profit nearly doubled to Rs19.17 million, up from Rs9.66 million in the corresponding quarter of 2025. This improvement reflects stronger revenue generation and better gross profitability during the reporting period.
Another positive development was the company’s operating performance. Service Industries Textiles recorded an operating profit of Rs3.55 million, compared with an operating loss of Rs2.76 million in the same quarter last year. This indicates a notable improvement in its core business operations.
Finance costs also declined to Rs1.56 million from Rs2.12 million, providing some additional relief to the company’s financial performance.
However, the company continued to face pressure from levies and taxation. Its loss before income tax stood at Rs3.01 million, compared with Rs9.07 million in the corresponding quarter last year.
As a result of these improvements, the company’s net loss narrowed considerably to Rs1.60 million, against a net loss of Rs9.83 million in the same period last year. Loss per share also improved to Rs0.12 from Rs0.71, highlighting a substantial reduction in the company’s quarterly losses.
Despite the improvement in profitability, the company’s financial position showed some pressure. Total assets stood at Rs1.62 billion as of September 30, 2026, compared with Rs1.71 billion at June 30, 2026. Current assets declined to Rs122.30 million from Rs198.63 million, while cash and bank balances decreased to Rs24.03 million from Rs30.52 million.
The cash flow statement also highlighted challenges, with the company reporting net cash used in operating activities of Rs6.13 million during the quarter, compared with positive operating cash flow of Rs22.67 million in the corresponding period last year.
Meanwhile, the board of directors did not announce any cash dividend, bonus shares, or right shares for the quarter ended September 30, 2026.
Overall, Service Industries Textiles’ first-quarter results reflect a considerable improvement in its operating performance and a significant reduction in net losses. However, declining current assets and negative operating cash flow remain important areas to monitor in the coming quarters.
Investors will be watching whether the company can sustain its revenue growth, improve cash generation, and return to consistent profitability in the remaining financial year.
