Sardar Chemical Industries Limited reported a strong financial performance for the nine months ended March 31, 2026, posting a significant increase in profitability driven by higher gross margins, lower finance costs, and improved operating efficiency.
The company recorded net sales of Rs403.06 million, up from Rs395.86 million in the corresponding period last year. While revenue growth remained modest, a notable reduction in the cost of sales helped lift gross profit to Rs133.46 million, compared with Rs108.18 million a year earlier.
As a result, profit after tax climbed to Rs47.97 million, marking a 76.8% increase from Rs27.13 million reported during the same period last year. Earnings per share (EPS) also improved significantly to Rs7.99, compared with Rs4.52 in the corresponding period of 2025.
The company’s operating profit rose to Rs69.17 million, supported by relatively stable administrative expenses despite an increase in selling and distribution costs. Meanwhile, finance costs declined to Rs5.18 million from Rs6.97 million, further strengthening the bottom line. The company also recognized other operating income of Rs3.07 million, including gains from the sale of fixed assets.
During the third quarter alone, Sardar Chemical posted a profit of Rs12.30 million, compared with Rs7.37 million in the same quarter last year, reflecting continued earnings momentum.
On the balance sheet, the company’s total assets increased to Rs498.87 million as of March 31, 2026, from Rs466.97 million at the end of June 2025. Growth in trade receivables and inventory contributed to the expansion in current assets, while shareholders’ equity strengthened as retained earnings rose to Rs293.71 million.
Cash generated from operating activities stood at Rs17.47 million, although cash and bank balances declined slightly to Rs20.64 million by the end of the reporting period following debt repayments, dividend payments, and financing outflows.
The latest financial results indicate that Sardar Chemical Industries has successfully improved its profitability through better cost management and stronger operational performance. Sustaining revenue growth while maintaining healthy margins will remain a key focus for the company in the coming quarters.