KARACHI: Shahtaj Textile Limited delivered a strong earnings performance during the first nine months of FY2025-26, posting a significant increase in profitability despite a decline in revenue, reflecting improved operational efficiency and lower financing costs.

According to the company’s unaudited financial results for the nine-month period ended March 31, 2026, net sales declined to Rs4.78 billion, compared with Rs5.34 billion recorded in the corresponding period last year. However, the company successfully improved its margins, with gross profit rising to Rs612.7 million from Rs484.8 million a year earlier.

Shahtaj Textile reported a profit after tax of Rs209.6 million, nearly four times higher than the Rs52.8 million earned during the same period last year. Consequently, earnings per share (EPS) increased to Rs21.70, compared with Rs5.47 in the corresponding period of FY2025.

The company’s quarterly performance also remained robust. For the quarter ended March 31, 2026, profit after tax climbed to Rs88.2 million, compared with Rs26.5 million in the same quarter last year, while quarterly EPS improved to Rs9.13 from Rs2.74.

A key contributor to the earnings growth was the substantial reduction in finance costs, which fell to Rs104.9 million during the nine-month period from Rs164.6 million a year earlier. Although administrative and other operating expenses increased, the company benefited from stronger gross margins and improved cost management, helping offset the impact of lower sales.

On the balance sheet, Shahtaj Textile’s total equity increased to Rs2.47 billion as of March 31, 2026, compared with Rs2.37 billion at the end of June 2025. Meanwhile, short-term borrowings declined to Rs387.6 million, reflecting efforts to strengthen the company’s financial position. Cash and bank balances also improved to Rs35.9 million from Rs30.1 million over the same period.

The Board of Directors, in its meeting held on April 29, 2026, did not recommend any cash dividend or other shareholder benefit for the period under review.

The latest results indicate that while demand remained challenging, Shahtaj Textile successfully enhanced profitability through better cost control, improved production margins, and reduced financing expenses, positioning the company on a stronger financial footing heading into the remainder of the fiscal year.