KARACHI: Shaffi Chemical Industries Limited has posted a return to profitability for the nine-month period ended March 31, 2026, supported by a significant increase in sales and improved operational performance despite continuing financial challenges.
According to the company’s latest quarterly financial report, Shaffi Chemical recorded a net profit after tax of Rs0.58 million during the first nine months of FY2026, compared with a loss of Rs16.39 million in the corresponding period of last year. Earnings per share (EPS) improved to Rs0.05, reversing the loss per share of Rs1.37 reported a year earlier.
The turnaround was driven by robust revenue growth, with sales increasing to Rs35.06 million from Rs12.19 million in the same period last year. The company attributed the improvement to consistent business activity, better customer confidence, and ongoing efforts to enhance operational efficiency.
Despite higher revenues, Shaffi Chemical continued to face financial pressure from financing costs, which stood at Rs4.62 million. However, improved gross margins and disciplined cost management enabled the company to offset these expenses and return to profitability.
The directors noted that the company has made notable progress in strengthening its production capacity. During the period, the authorized share capital was increased from Rs120 million to Rs400 million, while the company also completed the issuance of bonus shares, raising the paid-up capital from Rs120 million to Rs132 million. The management stated that these measures are intended to support future expansion and strengthen the company’s financial position.
Shaffi Chemical also highlighted that it has secured a sale reserve of approximately Rs35.96 million from the sale of plant and machinery, which is expected to support future business operations. Additionally, management said it plans to pursue a rights issue after obtaining the necessary regulatory approvals to further improve liquidity and finance business growth.
Looking ahead, the company remains focused on increasing production efficiency, expanding its customer base, and maintaining financial discipline. Management expressed confidence that ongoing strategic initiatives and planned capital strengthening measures will help sustain the company’s recovery and create long-term value for shareholders.
