Pakistan Synthetics Delivers Strong Profit Growth in FY2026 Despite Lower Revenue

Pakistan Synthetics Limited has reported a significant improvement in profitability for the financial year ended June 30, 2026, with the company’s bottom line more than doubling compared with the previous year.

According to the financial statements approved by the company’s Board of Directors on September 29, 2026, profit after tax rose to Rs811.45 million in FY2026 from Rs367.45 million a year earlier. This represents an increase of around 121%. The company’s earnings per share also improved sharply, reaching Rs5.85, compared with Rs2.65 in FY2025. 283816

Revenue declines, but profitability improves

Pakistan Synthetics recorded revenue of Rs15.67 billion during FY2026, compared with Rs16.87 billion in the previous year. Despite the lower revenue, the company managed to increase its gross profit to Rs2.04 billion, from approximately Rs1.98 billion in FY2025. 283816

The improvement in profitability was supported by lower administrative and general expenses, distribution and selling costs, and other operating expenses. The company also reported a reversal of Rs17.72 million against expected credit losses, compared with an allowance of Rs13.70 million in the previous year.

As a result, operating profit increased to approximately Rs1.65 billion, compared with Rs1.48 billion in FY2025. 283816

Finance costs remain a major expense

While operating performance strengthened, finance costs remained substantial. The company reported finance costs of approximately Rs602.76 million during FY2026, compared with Rs664.89 million a year earlier.

The lower finance cost helped support the improvement in profit before taxation, which reached approximately Rs1.39 billion, compared with Rs637.48 million in FY2025. After taxation and levy of around Rs577.67 million, profit for the year stood at Rs811.45 million. 283816

Balance sheet expands

The company’s total assets increased to approximately Rs12.67 billion at June 30, 2026, from Rs11.20 billion at the end of FY2025. Non-current assets rose significantly, including property, plant and equipment and investment in associates.

Shareholders’ equity also strengthened during the year. Reserves increased to approximately Rs4.05 billion, compared with Rs3.24 billion previously, largely reflecting the year’s higher profit. 283816

Cash flow and investment

Pakistan Synthetics generated approximately Rs407.75 million in net cash from operating activities during FY2026. The company continued to invest in its operations, with capital expenditure of approximately Rs1.29 billion during the year. 283816

The company also reported financing inflows during the year, including proceeds from long-term and short-term borrowings. Despite these movements, cash and cash equivalents at year-end stood at approximately Rs690.45 million.

No cash dividend recommended

Despite the substantial improvement in earnings, the Board of Directors did not recommend a cash dividend for the year ended June 30, 2026. The company has instead retained its stronger earnings within its financial position. 283816

Annual General Meeting scheduled

Pakistan Synthetics has announced that its Annual General Meeting will be held on October 28, 2026, at 10:00 a.m. in Karachi. The company’s share transfer books will remain closed from October 21 to October 28, 2026, inclusive. 283816

Overall, Pakistan Synthetics entered FY2027 with a considerably stronger earnings position. Although annual revenue declined, improved operating performance, lower finance costs and other income helped the company deliver a substantial increase in profit and earnings per share. The results highlight a notable improvement in profitability and balance-sheet strength during FY2026.