Karachi: Sardar Chemical Industries Limited, a prominent player in the dyes and chemical sector, has released its annual financial report for the year ending June 30, 2026, on October 6, 2026. The report highlights a contraction in net sales amid rising input costs and geopolitical tensions affecting the region.
According to the report, the net sales for the fiscal year 2026 stood at 528.55 million rupees, a decrease from the previous year's 533.86 million rupees. Despite the decline in sales, the company registered a gross profit of 167.58 million rupees, showing an improvement from last year's figure of 148.40 million rupees. The profit before taxation increased to 70.32 million rupees from 53.45 million rupees in 2025, yet the profit after taxation saw a decrease, standing at 37.96 million rupees compared to 45.60 million rupees the prior year.
The earnings per share for the year were reported at 6.33 rupees, down from 7.60 rupees in 2025, reflecting the financial pressures the company faced. The report attributes the slight decline in net sales to increased prices of imported raw materials and heightened fuel prices driven by ongoing regional conflicts. These factors have contributed to rising local freight charges, impacting the company's sales as customers grapple with the elevated costs of finished products.
According to information available from the Pakistan Stock Exchange (PSX), Sardar Chemical Industries Limited operates primarily in the textile, dyeing, printing, and leather sectors, with a significant portion of its production dedicated to optical brighteners for the textile and paper industries. The company is actively pursuing a ZDHC MRSL Certificate of Conformance to enhance its compliance with international standards and environmental safety, aiming to meet the needs of its export-oriented clientele.
The Board of Directors has proposed a 15% dividend, equivalent to 1.5 rupees per share, subject to shareholder approval at the upcoming Annual General Meeting. The board comprises seven directors, including three executive directors, two non-executive directors, and two independent directors. The Audit Committee, led by Chairman Mr. Aitzaz Ahmad Tarar, conducted four meetings during the year to oversee the company's financial oversight and auditor appointments.
As the company navigates these challenges, it continues to position itself for compliance with global standards, reflecting its commitment to sustainability and corporate responsibility amidst a complex market environment.