Karachi: The directors of Sana Industries Limited have announced a robust financial performance for the first quarter ending September 30, 2026. The company's un-audited condensed interim financial results indicate a noteworthy turnaround, with net revenue rising to Rs. 581.20 million from Rs. 502.65 million in the same quarter the previous year. This increase highlights the company's strategic shift towards high-value specialty products.
The gross profit for the quarter surged to Rs. 75.05 million, up from Rs. 47.59 million in the corresponding period last year. This improvement is attributed to effective margin optimization. Administrative expenses were managed at Rs. 22.51 million, down slightly from Rs. 23.42 million, and distribution expenses decreased to Rs. 7.49 million from Rs. 10.77 million, demonstrating effective logistics and market-targeting strategies. Consequently, the profit before interest and tax (PBIT) rose to Rs. 45.05 million, compared to Rs. 13.40 million in the same period last year.
Despite a reduction in sales volume to 1,617,310 pounds from 2,113,962 pounds in the corresponding period last year, the company achieved this revenue growth. The deliberate contraction in sales volume is part of management's strategy to phase out lower-margin contracts and focus on optimizing the product mix. This transition underscores the challenging external business environment, where common products in the textile value chain face feasibility issues due to foreign competition and high local energy costs.
According to information available from the Pakistan Stock Exchange (PSX), Sana Industries Limited's financial management improvements and reduced short-term borrowing have resulted in a decrease in finance costs to Rs. 27.53 million from Rs. 33.26 million. Other income for the quarter was Rs. 7.19 million, and after accounting for taxation of Rs. 7.26 million, the company recorded a profit after taxation of Rs. 17.44 million. This represents a significant recovery from a loss of Rs. 24.89 million in the same quarter last year.
The company's operational efficiency and cost management have contributed to the remarkable turnaround in gross profitability and operating margins. Production costs were controlled through the use of a mix of localized solar power generation and grid electricity, enhancing cost absorption and competitive positioning. This sustainable power configuration, alongside efficient raw material procurement, has bolstered the company's operational resilience.