Karachi: Security Papers Limited, a key player in the paper manufacturing industry, held its Corporate Briefing Session on October 16, 2026, to discuss the financial results for the fiscal year 2025-26. The session highlighted a noticeable decline in the company's financial performance compared to the previous year, primarily due to a decrease in sales and gross profit.

For the year ended June 30, 2026, Security Papers Limited reported sales of Rs 7,306 million, a decrease from Rs 7,871 million in the previous year. The gross profit also fell to Rs 1,585 million from Rs 2,204 million, indicating a significant reduction in profitability. The company's profit after taxation stood at Rs 907 million, down from Rs 1,524 million, marking a very large or significant move in financial performance.

The earnings per share for the year declined to Rs 15.31 from Rs 25.72. This drop in earnings is reflective of the challenges faced by the company in maintaining its revenue streams and managing costs effectively.

According to information available from the Pakistan Stock Exchange (PSX), the company's financial position as of June 30, 2026, showed total assets amounted to Rs 12,107 million, an increase from Rs 11,350 million the previous year. This growth in assets was driven by an increase in fixed assets, including Capital Work in Progress (CWIP), which rose to Rs 4,467 million from Rs 1,999 million.

Despite the overall decline in profitability, shareholders' equity improved slightly to Rs 9,378 million from Rs 9,001 million. However, trade and other payables increased to Rs 1,689 million from Rs 1,233 million, reflecting a rise in liabilities.

The company's management pointed out that the decrease in other income, which was recorded at Rs 688 million compared to Rs 916 million in the previous year, also contributed to the decline in overall profitability. Additionally, the cost of sales increased marginally to Rs 5,721 million from Rs 5,667 million.

Security Papers Limited's financial performance for the year 2025-26 underscores the challenges faced in a competitive market environment, with the company experiencing a big move in its financial metrics. The management remains focused on addressing these challenges to improve future performance.