Shafi Chemical Industries Limited has reported a significant financial turnaround for the year ended June 30, 2026, moving from a loss in the previous year to a substantial profit after tax.
According to the company’s financial statements, Shafi Chemical Industries posted profit after tax of Rs70.66 million for FY2026, compared with a loss after tax of Rs29.11 million in FY2025. Earnings per share also improved sharply to Rs5.89 from Rs2.43. 284305
Revenue and profitability improve
The company recorded revenue of approximately Rs48.91 million during the year, while gross profit stood at Rs8.41 million. Administrative and other expenses remained significant, but the company benefited from a substantial increase in other income.
Other income reached approximately Rs77.39 million, compared with Rs2.28 million in the previous year. As a result, profit from operations rose to around Rs82.42 million, compared with a loss of Rs1.97 million in FY2025. 284305
After finance costs and taxation, the company reported profit after tax of Rs70.66 million, marking a notable improvement in overall financial performance.
Stronger comprehensive income
The improvement was also reflected in comprehensive income. Shafi Chemical Industries recorded total comprehensive income of Rs70.67 million for FY2026, compared with a comprehensive loss of approximately Rs14.69 million in FY2025. 284305
The company’s equity position also moved into positive territory. Total equity stood at approximately Rs128.83 million at June 30, 2026, compared with negative equity of around Rs70.55 million a year earlier. 284305
Changes in assets and liabilities
The balance sheet shows total assets of approximately Rs40.67 million, compared with Rs52.60 million in FY2025. Current assets increased substantially to about Rs24.83 million, from Rs11.13 million.
Stock-in-trade increased to approximately Rs12.23 million, while trade debts rose to Rs3.30 million. Cash and bank balances also improved to approximately Rs2.08 million at the end of the year. 284305
On the liabilities side, the company reported total liabilities of approximately Rs40.54 million, with current liabilities accounting for a significant portion of the balance.
Cash flow remains an area to watch
Despite the reported profit, cash flow from operating activities was negative at approximately Rs36.03 million. The company generated substantial cash from investing activities, mainly through proceeds from disposal of associates’ shares, resulting in net investing cash flow of about Rs94.86 million. 284305
Cash and cash equivalents increased from approximately Rs1.14 million to Rs2.08 million during the year.
The figures suggest that while the company achieved a major improvement in reported profitability, investors may continue to watch the company’s operating cash generation and the sustainability of income beyond one-off or investment-related gains.
No dividend announced
The company has recommended no cash dividend, bonus shares or right shares for the year ended June 30, 2026. The annual general meeting is scheduled for October 27, 2026, at the company’s registered office in Gadoon Amazai Industrial Estate, Swabi. 284305
Overall, Shafi Chemical Industries’ FY2026 results represent a major turnaround from the previous year’s loss. The sharp rise in profit, improvement in equity and stronger earnings per share are positive developments, although the negative operating cash flow and dependence on significant other income will remain important factors for investors assessing the company’s future performance.
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