Karachi: Security Papers Limited, a prominent entity in the designated market category of security paper manufacturing, has released its annual report for the fiscal year ending June 30, 2026. The report, dated September 3, 2026, details the company's financial performance, strategic initiatives, and operational challenges over the past year.
According to the report, the company experienced a decline in profit after tax, recording PKR 907 million compared to PKR 1,524 million in the previous fiscal year. This represents a significant move of -40.47% in profitability. The earnings per share also decreased from PKR 25.72 to PKR 15.31. The decline was attributed to an increase in production costs, reduced 'other income' due to lower mark-up rates, and the utilization of funds for the ongoing Balancing, Modernization, and Replacement (BMR) project.
The company's net sales amounted to PKR 7.31 billion, a decrease from PKR 7.87 billion in the prior year, marking a moderate move of -7.17%. This reduction in revenue was primarily due to planned operational adjustments, inventory alignment for a new banknote series, and temporary disruptions from rainfall in Karachi during August 2025. Despite these challenges, the company maintained disciplined procurement practices and effective supplier negotiations, optimizing production costs and continuing to invest in strategic initiatives for long-term competitiveness.
According to information available from the Pakistan Stock Exchange (PSX), the company's total equity increased to PKR 9.38 billion as of June 30, 2026, from PKR 9.00 billion the previous year. This reflects a continued strengthening of its capital base through retained earnings. Security Papers Limited remained debt-free throughout the year, with no long-term or short-term borrowings outstanding as of the reporting date.
Investment income saw a reduction, amounting to PKR 674 million compared to PKR 889 million the preceding year. The decrease was largely due to declining monetary policy rates and the planned utilization of investments to finance the BMR project. The company proactively optimized its investment portfolio while maintaining adequate liquidity for operational and project funding needs.
The board of directors has recommended a final cash dividend of PKR 9.00 per share for the fiscal year ended June 30, 2026, subject to shareholder approval at the upcoming Annual General Meeting on September 25, 2026. The company's principal customer, Pakistan Security Printing Corporation (Private) Limited, accounted for 99.78% of total sales, primarily comprising banknote papers. The trade agreement with PSPC was successfully renewed during the year, operating under a cost-plus pricing mechanism.
Security Papers Limited continued its commitment to environmental, social, and governance (ESG) principles, advancing sustainability initiatives and maintaining high standards of corporate governance. The company installed an additional 350 kW solar power system, upgraded its cogeneration power plant, and implemented various health, safety, and environmental measures. It also disbursed PKR 8.71 million towards social welfare initiatives and charitable organizations, supporting healthcare, education, and community development.
During 2026, the company received recognition for its corporate and sustainability efforts, earning several awards including the 18th CSR Awards 2026 by The National Forum for Environment and Health, and the Women Empowerment and Gender Equality Recognition Award 2025 from the Employers' Federation of Pakistan.
Security Papers Limited remains focused on integrating ESG principles into its long-term strategy, ensuring sustainable business practices that create enduring value for shareholders while fulfilling its responsibilities towards employees, customers, society, and the environment.