Sitara Chemical Industries Limited has reported a significant improvement in profitability for the financial year ended June 30, 2026, with earnings rising strongly despite largely stable revenue. The company’s latest financial statements show a notable increase in profit and earnings per share, highlighting improved overall financial performance during the year. 283674
According to the company’s statement of profit or loss, revenue from contracts with customers stood at Rs32.55 billion in FY2026, compared with Rs32.53 billion in the previous year. While revenue remained almost unchanged, gross profit increased to Rs6.16 billion from Rs5.62 billion, reflecting an improvement in gross margins. 283674
The improvement at the gross-profit level helped strengthen the company’s bottom line. Profit for the year climbed to Rs1.45 billion, compared with Rs939.27 million in FY2025. This represents an increase of roughly 54% year-on-year.
The company’s earnings per share (EPS) also improved substantially, reaching Rs67.68 in FY2026 from Rs43.83 a year earlier. The rise in EPS reflects the stronger profitability achieved during the period. 283674
Dividend of Rs13 Per Share
Alongside the financial results, Sitara Chemical Industries announced a significant cash return for shareholders. The Board of Directors recommended a final cash dividend of Rs13 per share, equivalent to 130%, for the year ended June 30, 2026. No bonus shares or right shares were recommended. 283674
The company said the entitlement would apply to shareholders whose names appear in the Register of Members on October 20, 2026. The Annual General Meeting is scheduled for October 27, 2026, at 3:00 p.m. in Karachi, while the share transfer books will remain closed from October 21 to October 27, 2026. 283674
Stronger Cash Generation
Sitara Chemical’s cash flow position also showed several important developments. Cash generated from operations before working-capital changes reached approximately Rs5.68 billion, compared with Rs5.32 billion in FY2025. After working-capital movements and payments, net cash generated from operating activities stood at about Rs2.69 billion. 283674
The company used approximately Rs3.57 billion in investing activities, substantially lower than the Rs7.37 billion used in the previous year. Financing activities generated net cash of approximately Rs771 million, compared with Rs4.18 billion in FY2025. Cash and cash equivalents stood at Rs221.75 million at the end of FY2026. 283674
Balance Sheet Continues to Expand
Sitara Chemical’s total assets increased to approximately Rs51.19 billion as of June 30, 2026, compared with Rs47.55 billion a year earlier. Non-current assets stood at Rs36.51 billion, while current assets reached Rs14.68 billion. 283674
On the equity side, shareholders’ equity increased to approximately Rs20.45 billion from Rs18.87 billion. The company’s reserves and unappropriated profit also strengthened during the year. Total liabilities stood at approximately Rs30.74 billion. 283674
A Stronger Year for Sitara Chemical
Overall, Sitara Chemical Industries closed FY2026 with a much stronger bottom line despite virtually unchanged revenue. Higher gross profit, improved earnings and a substantial increase in EPS were among the key highlights of the year.
The recommended Rs13-per-share cash dividend further underscores the company’s shareholder-return focus. With its improved profitability and continued investment in assets, Sitara Chemical enters the new financial year from a stronger financial position.
