Karachi: Sitara Chemical Industries Limited has released its financial results for the first quarter of the fiscal year 2026-27, ending on September 30, 2026, showing a significant growth in net sales but a decline in profitability, as detailed in the company's directors' report dated October 30, 2026.

The company's net sales reached PKR 8,866 million, marking an increase of approximately 11.98% from the PKR 7,918 million recorded in the same period of the previous year. Gross profit also saw an uptick, rising to PKR 1,484 million from PKR 1,378 million, reflecting an improvement of 7.68%. However, the gross profit margin decreased from 17.41% to 16.74%. This reduction was primarily due to additional depreciation costs following the capitalization of a 50 MW coal-fired power plant last quarter.

Finance costs were reported at PKR 618 million, up from PKR 349 million in the previous year. This increase was attributed to borrowing costs now recognized in the profit or loss statement after the commissioning of the coal-fired power plant, coupled with higher borrowing rates during the quarter.

The company's textile segment reported stable operational performance, buoyed by improved selling prices of yarn and fabric. Despite these operational strengths, the company's profit after tax fell to PKR 199 million from PKR 349 million in the prior year. Earnings per share also dropped to PKR 9.30 from PKR 16.29, largely due to the aforementioned depreciation and finance costs linked to the new power plant.

According to information available from the Pakistan Stock Exchange (PSX), Sitara Chemical Industries Limited's financial performance in the designated market category reflects both the opportunities and challenges faced by the company in adapting to new operational capacities and cost structures.

While the company navigates these financial dynamics, it remains committed to leveraging its expanded power capabilities and maintaining stable operations across its sectors.