Sitara Peroxide Limited Reports Rs147.46 Million Annual Profit After Last Year’s Loss

Sitara Peroxide Limited has reported a significant financial turnaround for the financial year ended June 30, 2026, posting a net profit of Rs147.46 million compared with a net loss of Rs222.52 million in the previous financial year.

According to the company’s financial statements submitted to the Pakistan Stock Exchange (PSX), earnings per share (EPS) improved to Rs2.68 in FY2026 against a loss per share of Rs4.04 in FY2025.

Return to Profitability

The company’s financial results show a substantial improvement in its bottom line. Profit before income tax and levies stood at Rs14.09 million for FY2026, compared with a loss of Rs311.35 million in the preceding year.

Other income increased significantly to Rs375.72 million during the year, compared with Rs12.90 million in FY2025. This increase was a major contributor to the improvement in the company’s reported financial performance.

Meanwhile, administrative expenses declined to Rs240.41 million from Rs254.75 million in the previous year. However, impairment losses increased to Rs82.50 million from Rs64.77 million, while finance costs rose to Rs38.73 million from Rs4.74 million.

Asset Position and Liabilities

Sitara Peroxide’s total assets stood at approximately Rs2.51 billion as of June 30, 2026, compared with Rs2.78 billion a year earlier.

The company’s total equity and reserves increased to approximately Rs1.14 billion from Rs989.06 million in FY2025, reflecting the improvement in its accumulated financial position.

Current assets declined to Rs355.83 million from Rs433.42 million. Cash and bank balances stood at Rs3.88 million at the end of the financial year, compared with Rs5.66 million in the previous year.

Cash Flow Performance

The company’s cash flow statement showed that net cash used in operating activities amounted to Rs87.06 million during FY2026, compared with Rs19.65 million generated in the previous year.

Net cash generated from investing activities reached Rs139.55 million, primarily reflecting proceeds from the disposal of a non-current asset held for sale. Financing activities used a net Rs54.28 million during the year.

As a result, cash and cash equivalents decreased by Rs1.78 million during FY2026, leaving the company with closing cash and cash equivalents of Rs3.88 million.

No Dividend Announced

The company’s board of directors, at its meeting held on October 9, 2026, did not recommend an interim cash dividend, bonus shares, right shares or any other corporate action.

The company also announced that its Annual General Meeting (AGM) will be held on October 28, 2026, at 4:00 p.m. in Karachi.

Furthermore, the share transfer books will remain closed from October 22 to October 28, 2026, both days inclusive. Shareholders seeking to attend the meeting should take note of the announced dates.

Outlook

Sitara Peroxide Limited’s return to profitability marks a notable change from its previous year’s financial results. The improvement in annual earnings and earnings per share represents a positive development for the company.

However, the decline in operating cash flow, lower cash balances and higher finance costs remain important factors for investors to monitor. The sustainability of the company’s improved profitability will depend on its future financial performance and its ability to strengthen cash generation.

Investors are advised to review the company’s complete financial statements and subsequent disclosures before making investment decisions.