Sana Industries Limited reported a challenging financial performance for the nine months ended March 31, 2026, with a significant decline in revenue. However, the company managed to substantially reduce its loss during the third quarter, pointing to some improvement in its bottom line.

According to the company’s consolidated condensed interim financial statements, revenue for the nine-month period fell to Rs1.713 billion, compared with Rs3.205 billion in the same period last year. The decline in revenue was accompanied by lower cost of sales, resulting in a gross profit of Rs151.9 million, down from Rs189.4 million a year earlier.

Despite the weaker revenue base, the company’s overall loss position improved. Sana Industries posted a loss after taxation of Rs92.6 million for the nine months ended March 31, 2026, compared with a loss of Rs126.4 million in the corresponding period of the previous year.

Finance costs remained a major burden on the company, amounting to Rs92.7 million during the nine-month period. The company also recorded administrative expenses of around Rs99.4 million and distribution expenses of approximately Rs41.9 million.

Stronger Third-Quarter Performance

The company’s results for the latest three-month period offered a more encouraging picture.

Revenue for the quarter stood at Rs383.2 million, compared with Rs1.029 billion in the same quarter last year. Nevertheless, Sana Industries generated a gross profit of Rs63.1 million, significantly higher than the Rs22.3 million recorded in the comparable quarter.

Most notably, the company reduced its quarterly loss after taxation to just Rs1.3 million, against a loss of Rs80.2 million in the third quarter of the previous year. Earnings per share consequently improved to Rs0.05, compared with negative EPS of Rs3.92 a year earlier.

The sharp improvement in the quarterly bottom line suggests that, despite weaker sales, cost management and other income helped cushion the impact of lower revenue.

Balance Sheet and Cash Position

Sana Industries’ consolidated total assets stood at Rs2.338 billion as of March 31, 2026, compared with Rs2.885 billion at June 30, 2025. Current assets declined during the period, while the company’s cash and bank balances increased to Rs122.9 million from Rs21.4 million at the end of June 2025.

The company generated Rs197.5 million in net cash from operating activities during the nine months, slightly above the Rs195.2 million generated in the corresponding period last year. This indicates that operating cash generation remained relatively resilient despite the reported accounting loss.

Meanwhile, the company used Rs19.8 million in investing activities and Rs76.3 million in financing activities during the period.

Outlook

Sana Industries’ nine-month results reflect a difficult operating environment, particularly in terms of revenue generation. The substantial fall in sales remains a key concern for the company.

However, the dramatic reduction in the third-quarter loss provides a positive element in the latest financial performance. With quarterly earnings moving close to break-even and operating cash flows remaining positive, the company’s ability to control costs and improve margins will be important in determining its financial performance in the remaining period.

Overall, while Sana Industries continues to face pressure from lower revenues and finance costs, the latest quarter shows a marked improvement in profitability compared with the same period last year.