Sunrays Textile Mills Limited (STML) reported a significant decline in profitability for the nine-month period ended March 31, 2026, as lower margins, rising finance costs, and increased taxation weighed on earnings despite maintaining strong revenue levels.
According to the company’s financial results, net sales for the nine-month period stood at Rs14.62 billion, slightly lower than Rs14.94 billion recorded during the corresponding period last year. Gross profit fell sharply by 37% to Rs939.1 million compared to Rs1.49 billion in the same period of FY25, reflecting increasing cost pressures on operations.
Profit before tax declined substantially to Rs135 million from Rs614 million a year earlier. After accounting for taxation, Sunrays Textile Mills posted a net profit of Rs36.6 million for the nine months ended March 31, 2026, compared with Rs408.8 million in the corresponding period last year, representing a decline of more than 91%. Earnings per share (EPS) dropped to Rs1.77 from Rs19.75 previously.
For the third quarter alone, the company earned Rs11.5 million, down significantly from Rs97.6 million reported in the same quarter of the previous year. Quarterly EPS stood at Rs0.56 versus Rs4.72 in the comparable period.
Finance costs remained elevated at Rs531.6 million during the nine-month period, while administrative and distribution expenses also increased, adding pressure on profitability. The company reported other income of Rs146.5 million, which partially offset the impact of higher costs.
On the balance sheet front, total assets stood at Rs19.25 billion as of March 31, 2026, compared with Rs20.11 billion at the close of FY25. Cash and bank balances declined sharply to Rs11.1 million from Rs78.7 million, while stock-in-trade decreased to Rs3.28 billion from Rs4.25 billion.
The Board of Directors, in its meeting held on April 30, 2026, did not recommend any cash dividend for shareholders.
Despite maintaining a sizable revenue base, the company’s earnings performance highlights the challenges facing Pakistan’s textile sector, including compressed margins, high financing costs, and a demanding operating environment.
