Karachi: Security Papers Limited has reported a challenging quarter ending September 30, 2026, marked by significant reductions in production and sales due to a planned shutdown for a crucial Balancing, Modernization, and Replacement (BMR) project. The company successfully completed this project within the scheduled timeframe and budget, enhancing its technical capabilities to produce security paper with advanced features in anticipation of a new banknote series.

During the quarter, the company's production plummeted to 277 tons from 906 tons in the same period last year. This decline resulted from a 67-day suspension of operations, essential for integrating modern machinery as part of the BMR project. Normal operations recommenced on September 30, 2026.

Net sales for the quarter fell sharply to PKR 732 million from PKR 1,843 million in the previous year's corresponding quarter. Consequently, the company recorded a gross loss of PKR 54 million, a stark contrast to the PKR 474 million gross profit recorded last year. The decline in other income, attributed to lower interest rates and the use of investments for the BMR project, further impacted financial results.

According to information available from the Pakistan Stock Exchange (PSX), Security Papers Limited posted a loss before tax of PKR 30 million, reversing a profit before tax of PKR 478 million from the previous year. The loss after tax was PKR 12 million, compared to a profit after tax of PKR 288 million in the corresponding period last year. This resulted in a loss per share of PKR 0.20, a significant downturn from earnings per share of PKR 4.87 last year.

The company remains optimistic about returning to profitability, aligning with previous trends, now that normal production levels have resumed. The status regarding the election of directors and pending litigation remains unchanged from the Annual Report 2026. Security Papers Limited continues to be categorized under the designated market category of the Pakistan Stock Exchange.