Karachi: Sana Industries Limited, in its 41st Annual Report for the fiscal year ending June 30, 2026, disclosed a year marked by strategic realignments amid challenging market conditions. The report, dated October 7, 2026, highlights a period of significant operational and financial adjustments in response to volatile input costs, competitive pressures from imported yarns, and structural challenges within the textile sector.
The company's financial performance was characterized by a decline in net revenues to Rs. 1,802.43 million from Rs. 2,416.29 million in the previous fiscal year. This decline was attributed to the strategic discontinuation of loss-making contracts and a deliberate capacity rationalization aimed at optimizing the energy mix. Despite the revenue contraction, Sana Industries achieved a substantial improvement in gross profit, which rose to Rs. 252.06 million, representing a gross profit margin of 13.98%, up from 8.42% in the prior year.
Operating profit saw a robust recovery, closing at Rs. 117.04 million compared to Rs. 66.38 million last year. This was achieved through effective cost-control measures and a reduction in administrative expenses to Rs. 84.31 million from Rs. 99.13 million. Other income normalized at Rs. 63.57 million, reflecting the absence of the previous year's windfall gain from property sales.
Finance costs witnessed a significant decrease to Rs. 129.35 million from Rs. 192.98 million, facilitated by improved financial structuring and reduced borrowing levels. Consequently, profit before taxes and levies stood at Rs. 51.26 million, down from Rs. 200.76 million in the last fiscal year.
The company reported advancements in its energy strategy with the installation of a 1.1 MW solar power system, which became fully operational by the end of January 2026. This initiative, in response to elevated energy tariffs and rising gas costs, successfully reduced factory fuel and power expenses from Rs. 256.80 million to Rs. 124.72 million.
According to information available from the Pakistan Stock Exchange (PSX), the synthetic yarn spinning sector in Pakistan is experiencing growth with the adoption of new technology and machinery. However, the sector faces stiff competition from imported yarns and elevated energy tariffs, which are inflating production costs compared to regional counterparts.
Sana Industries is shifting its focus toward the southern market for specialty products due to rising logistics and distribution costs affecting access to northern markets. The company remains committed to strategic realignment to navigate these industry and economic challenges effectively.