Peshawar: Shaffi Chemical Industries Limited has reported a noteworthy improvement in its financial performance for the fiscal year ending June 30, 2026, as detailed in its annual report dated October 6, 2026. The company has successfully transitioned from a loss-making position to achieving a net profit, largely attributed to the commencement of furniture trading activities and strategic financial management.

The company recorded a net sales revenue of Rs. 48.908 million, a rise from Rs. 23.681 million in the previous year, marking a very large or significant move of 106.53% in sales revenue. Gross profit also saw an uplift to Rs. 8.405 million from Rs. 3.653 million. This was complemented by a substantial increase in other income, skyrocketing to Rs. 77.389 million from Rs. 2.278 million, and leading to an operating profit of Rs. 82.420 million compared to Rs. 1.974 million the year prior.

According to information available from the Pakistan Stock Exchange (PSX), the company generated proceeds of Rs. 75.951 million through the disposal of 1,422,450 shares of Diamond Industries Limited. These funds were utilized to settle outstanding liabilities, including a Rs. 33.491 million loan from a director and Rs. 44.697 million to associated concerns, while also reducing markup liabilities from Rs. 40.700 million to Rs. 27.293 million.

Post-taxation, Shaffi Chemical Industries reported a net profit of Rs. 70.655 million, a stark contrast to the Rs. 29.107 million loss recorded in the prior fiscal year. This translates to earnings per share of Rs. 5.89, compared to a loss per share of Rs. 2.43 the previous year. The company's shareholders' equity turned positive, reaching Rs. 0.128 million from a deficit of Rs. 70.545 million, indicating a significant enhancement in the company's balance sheet.

The report also highlights the company's strategic shift towards furniture trading as part of a broader revival and diversification plan, which was approved by shareholders. The authorized share capital was increased from Rs. 120 million to Rs. 400 million to support future equity expansion and business requirements.

The company is actively contesting a winding-up petition filed by the Deputy Registrar of Companies, Peshawar, in the Peshawar High Court. The management's optimism is bolstered by the new furniture trading activities at its factory premises, which are expected to contribute positively to future financial outcomes.

Five board meetings were conducted during the year, with nearly full attendance from all directors. Standing committees such as the Audit Committee and Human Resources & Remuneration Committee continue to play pivotal roles in governance.

Overall, the company's efforts to revive and expand its business operations are underscored by these financial results, as it continues to pursue avenues for growth and stability in the market.