Service Industries Textiles Limited (PSX: SITL) reported a net loss of Rs71.81 million for the nine months ended March 31, 2026, compared with a loss of Rs62.80 million in the corresponding period last year, reflecting continued pressure on the company’s financial performance. The results were approved by the Board of Directors at its meeting held on April 30, 2026.
According to the company’s condensed interim financial statements, net sales declined to Rs1.004 billion during the nine-month period from Rs1.026 billion a year earlier. Meanwhile, the cost of sales exceeded revenue, resulting in a gross loss of Rs7.97 million, although this was an improvement compared to the gross loss of Rs8.96 million recorded in the same period last year.
Operating expenses remained substantial, with distribution expenses of Rs6.94 million and administrative expenses of Rs35.85 million, pushing the company to an operating loss of Rs50.77 million. Finance costs of Rs6.81 million and levy-related charges further weighed on earnings before taxation.
After accounting for taxation, the company reported a net loss of Rs71.81 million, translating into a loss per share (LPS) of Rs5.21, compared with an LPS of Rs4.55 in the corresponding period of the previous year.
For the third quarter alone, Service Industries Textiles posted a net loss of Rs17.92 million, a significant improvement from the Rs31.33 million loss recorded in the same quarter last year. Quarterly sales rose to Rs328.87 million from Rs316.58 million, while the quarterly gross loss narrowed considerably, indicating some operational improvement despite continued losses.
On the financial position side, the company reported total assets of Rs1.655 billion as of March 31, 2026, compared with Rs1.684 billion at the end of June 2025. Shareholders’ equity stood at Rs943.29 million, while accumulated losses increased to Rs440.03 million. Cash and bank balances improved to Rs24.81 million, supported by positive operating cash flows during the period.
The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or any other corporate action along with the financial results.
Despite a modest improvement in quarterly performance and operating cash generation, Service Industries Textiles continues to face profitability challenges amid lower sales and persistent operating costs. Investors will be watching future quarters closely to assess whether the company can build on the recent operational improvements and return to sustained profitability.
