Karachi: Shadab Textile Mills Limited has reported a noticeable decrease in profit for the first quarter ended September 30, 2026. According to the company's un-audited financial statements released on October 30, 2026, the profit after tax stood at Rs. 41.552 million, a significant decline from Rs. 88.805 million recorded in the corresponding period of the previous year.

The company's net sales for the quarter increased to Rs. 2,175.512 million, marking a 0.98% rise from Rs. 2,154.417 million in the same period last year. This increase in sales, however, did not translate into higher profitability, with earnings per share dropping to Rs. 1.82 from Rs. 5.32 in the previous year.

The decline in profitability was largely due to a substantial increase in the prices of both locally procured and imported raw materials, coupled with high energy costs. These factors adversely impacted the cost structure and global competitiveness of the textile industry. Despite these challenges, the company managed to remain profitable through efficient utilization of production facilities and effective cost management strategies, including an increased reliance on solar energy.

According to information available from the Pakistan Stock Exchange (PSX), the market has been closely monitoring the performance of companies within the textile sector, particularly given the current economic challenges.

Looking ahead, the outlook for the textile spinning sector remains challenging, with rising raw material, fuel, and energy prices continuing to apply pressure on production, transportation, and other operating costs. Additionally, the evolving situation in the Middle East is contributing to uncertainty in international commodity prices and freight rates.

The Board expressed its appreciation for the dedication and hard work of the company's executives, officers, staff, and workers, acknowledging their commitment amidst challenging conditions in the industry.