Service Industries Textiles Limited (SITL) reported a wider net loss for the nine months ended March 31, 2026, as continued weakness in domestic and international yarn markets weighed on the company’s financial performance. The latest unaudited financial results show that despite efforts to reduce energy costs, pricing pressure and subdued demand continued to impact profitability.
The company posted a net loss of Rs71.81 million, compared with a loss of Rs62.80 million in the corresponding period last year. Consequently, the loss per share increased to Rs5.21 from Rs4.55 a year earlier.
Revenue also declined during the period, with net sales falling to Rs1.004 billion from Rs1.026 billion in the same period of the previous year. Cost of sales remained higher than revenue, resulting in a gross loss of Rs7.97 million, although this was slightly better than the gross loss recorded last year.
In its directors’ report, the company said the losses were primarily driven by continued pressure on yarn prices in both domestic and export markets. Weak global demand and intense competition from regional suppliers continued to squeeze margins throughout the reporting period.
Management noted that investments in solar energy made during the previous period have helped reduce energy costs and the company plans to continue investing in alternative energy solutions to improve operational efficiency. However, these savings were insufficient to offset the impact of challenging market conditions.
The company also highlighted growing concerns over rising production costs stemming from geopolitical tensions, particularly those affecting fuel prices and logistics. Additionally, shortages in raw material availability have added further pressure on the textile sector, potentially leading to temporary production adjustments if supply constraints persist.
SITL further pointed to Pakistan’s declining cotton production, attributing the trend to climate variability, inconsistent seed quality, pest management issues, and increasing cultivation costs. The board emphasized that long-term improvements in seed development, farmer support, modernization of ginning technology, and supportive government policies are essential for stabilizing the textile industry.
Looking ahead, the company’s management said it remains focused on prudent financial management and operational discipline while closely monitoring market developments. It aims to take appropriate measures within its control to maintain business continuity and improve financial performance in the coming quarters.
