Karachi: Sapphire Fibres Limited (PSX: SFL) reported a solid financial performance for the nine months ended March 31, 2026, posting a 13.9% year-on-year increase in standalone profit after tax despite lower sales and continued pressure on margins.

According to the financial results approved by the company’s Board of Directors, Sapphire Fibres earned a net profit of Rs1.54 billion during the first nine months of FY2026, compared with Rs1.35 billion in the corresponding period last year. Earnings per share (EPS) improved to Rs74.58, up from Rs65.49 a year earlier.

The company’s net sales declined to Rs34.59 billion from Rs39.45 billion in the same period of FY2025, reflecting weaker demand and pricing pressures in the textile sector. Gross profit also dropped significantly to Rs1.68 billion, compared with Rs3.83 billion in the previous year, as margins remained under strain.

Despite the decline in core operating margins, Sapphire Fibres benefited from a substantial increase in other income, which rose to Rs4.94 billion from Rs2.59 billion a year earlier. This helped lift operating profit to Rs4.51 billion, compared with Rs4.16 billion in the corresponding period.

Finance costs increased to Rs1.74 billion, reflecting higher borrowing costs, while income tax expenses remained significant. Nevertheless, the company successfully delivered higher bottom-line earnings for the nine-month period.

For the third quarter alone, however, Sapphire Fibres reported a net loss of Rs730.84 million, compared with a profit of Rs310.33 million recorded in the same quarter last year. Quarterly EPS came in at negative Rs35.35, highlighting the challenging operating environment faced during the period.

On the balance sheet, the company strengthened its asset base, with total assets increasing to Rs91.68 billion as of March 31, 2026, from Rs83.67 billion at the end of June 2025. Shareholders’ equity also improved to Rs54.25 billion, reflecting growth in retained earnings and reserves.

The results indicate that while Sapphire Fibres continues to face headwinds from lower sales and rising financing costs, gains from investment income and disciplined financial management enabled the company to maintain earnings growth during the first nine months of FY2026.