Lahore: Shahtaj Textile Limited has reported its financial performance for the quarter ended September 30, 2026, as outlined in its Condensed Interim Financial Statements released on October 29, 2026. Despite facing challenging market conditions, the company managed to achieve a positive operating outcome, recording an after-tax profit of Rs 43.713 million, translating to an earnings per share (EPS) of Rs 4.53. This marks a decrease from the EPS of Rs 5.93 reported in the same period last year.

The company experienced a 9.6% decline in net sales, attributed primarily to lower sales volumes resulting from delayed orders by buyers and a general slowdown in market demand. An increased share of weaving orders, where customers supply the yarn, also contributed to this reduction in net sales. The delayed lifting of finished goods led to profits remaining unrealized on unsold inventory. Despite these challenges, Shahtaj Textile witnessed a slight improvement in its gross profit (GP) rate, which rose to 11.89% from 11.74% in the corresponding period of the previous year.

Administrative expenses saw an uptick during the quarter, driven by inflationary pressures. Meanwhile, finance costs decreased as a result of prudent financial management. The company's profit margins were pressured by a combination of market slowdown, inflation, and geopolitical uncertainties. Nevertheless, the company was able to mitigate some of these adverse effects through substantial savings in electricity costs, thanks to its 4.49 MW solar power capacity.

According to information available from the Pakistan Stock Exchange (PSX), Shahtaj Textile's performance reflects the broader trends in the market, characterized by cautious buyer behavior and ongoing economic challenges. The company continues to emphasize cost control, operational efficiency, and prudent working capital management as strategies to navigate market challenges and maintain profitability in the designated market category.