SERT H1 loss widens 71%

February 28, 2026 (MLN): Service Industries Textiles Limited (PSX: SERT) reported a wider net loss of Rs53.90 million for the half year ended December 31, 2025, showing a 71.26% increase compared to the net loss of Rs31.47m recorded in the same period last year.

The company posted a loss per share (LPS) of Rs3.91, compared to a loss of Rs2.28 per share in the corresponding period of the previous year, indicating a 71.49% deterioration in earnings performance.

On the top line, net sales declined by 4.84% year-on-year to Rs674.77m, down from Rs709.08m in H1 FY2025, highlighting persistent demand-side pressures in the textile segment.

Cost of sales fell by 2.99% to Rs681.98m from Rs703.04m. However, the decline in revenue outpaced the reduction in direct costs, resulting in a gross loss of Rs7.22m, compared to a gross profit of Rs6.04m in the same period last year.

On the operating front, distribution expenses decreased by 3.69% to Rs4.66m from Rs4.84m.

However, administrative expenses surged by 26.12% to Rs23.78m, compared to Rs18.85m in the corresponding period last year, adding further pressure on profitability.

Consequently, operating loss widened significantly by 101.97% to Rs35.66m, compared to Rs17.65m in H1 FY2025.

Below the operating level, finance costs provided some relief, declining by 20.68% to Rs5.62m from Rs7.08m. Other operating charges also reduced by 10.74% to Rs0.30m, while other income fell 12.69% to Rs48,343.

Loss before levy and taxation rose by 65.99% to Rs41.52m, compared to Rs25.01m in the same period last year.

After accounting for levy/final taxation of Rs8.44m, loss before taxation stood at Rs49.96m, widening 47.47% year-on-year.

The company recorded a tax expense of Rs3.94m during the period, compared to a tax credit of Rs2.41m in H1 FY2025, further contributing to the bottom-line erosion.

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