Karachi: Shaffi Chemical Industries Limited has reported a return to profitability in its first quarter financial results for the period ending September 30, 2026, following its strategic shift into the furniture business. This development comes amidst ongoing legal challenges, including a pending winding-up petition filed by the Deputy Registrar of Companies, Peshawar.
According to the quarterly report, released on November 2, 2026, the company generated a sales revenue of Rs. 13.143 million from its newly established furniture operations. This marks a significant increase from the Rs. 5.993 million recorded in the same period last year. However, the operating profit has seen a decline, standing at Rs. 0.676 million compared to Rs. 0.890 million in the corresponding quarter of 2025.
Despite the decline in operating profit, Shaffi Chemical Industries Limited achieved a net profit after tax of Rs. 0.473 million, a notable improvement from the net loss of Rs. 0.580 million reported in the same quarter of the previous year. The earnings per share for the quarter registered at Re. 0.04, contrasting with a loss per share of Rs. 0.05 in the corresponding period of 2025, highlighting the company's financial turnaround.
The company's foray into the furniture sector is part of a broader business revival plan, which was endorsed by shareholders during an Extraordinary General Meeting (EOGM) on April 19, 2025. The approved plan includes diversification into manufacturing and trading of furniture products and an increase in authorized share capital from Rs. 120 million to Rs. 400 million to facilitate future fundraising efforts.
According to information available from the Pakistan Stock Exchange (PSX), Shaffi Chemical Industries Limited has been proactive in disseminating crucial information to its shareholders and has filed necessary statutory forms with the Registrar of Companies, Peshawar, which are currently under review.
The company continues to face legal proceedings, as the status of disputed cases involving First Capital ABN AMRO Equities (Pakistan) Limited and the Lahore Stock Exchange remains unchanged. These cases, categorized under "Contingencies and Commitments" in the annual audited financial statements for the year ended June 30, 2026, are being actively contested in appropriate forums.
Shaffi Chemical Industries Limited's strategic pivot and legal entanglements underscore the complex landscape the company navigates as it seeks to stabilize and grow its business in the competitive market.