Service Industries Textiles loss widens 14% in 9MFY26

April 30, 2026 (MLN): Service Industries Textiles Limited (PSX: SERT) reported a 14.35% widening in net loss for the period for the nine months ended March 31, 2026, recording a loss of Rs71.81m compared to a loss of Rs62.80m in the corresponding period last year.

The company's basic and diluted loss per share (LPS) widened 14.51% to Rs5.21, from a loss per share of Rs4.55 in 9MFY25, reflecting continued value erosion for shareholders during the period.

SERT's net sales declined 2.15% to Rs1.00bn from Rs1.03bn. Cost of sales contracted at a marginally faster pace of 2.22% to Rs1.01bn, providing minimal relief.

The company continued to operate at a gross loss level, though the gross loss narrowed by 11.03% to Rs7.97m from Rs8.96m, indicating a modest improvement at the product level.

Distribution expenses remained broadly flat, declining marginally by 0.18% to Rs6.94m. Administrative expenses, however, rose sharply by 31.94% to Rs35.85m from Rs27.17m, adding considerable overhead pressure.

The combined effect widened the operating loss by 17.82% to Rs50.77m from Rs43.09m.

Finance costs declined meaningfully by 33.56% to Rs6.81m from Rs10.24m, providing a partial tailwind. Other operating charges declined 43.84% to Rs300,000 from Rs534.18m. Other income moderated 12.69% to Rs48.34m.

Loss before levy and taxation consequently widened 7.46% to Rs57.82m from Rs53.81m. Levy and final taxation charges of Rs12.55m further deepened the pre-tax loss to Rs70.37m from Rs66.63m, a 5.61% widening.

Taxation swung to a charge of Rs1.44m against a credit of Rs3.83m in the prior year, adding a final layer of pressure to the bottom line.

After accounting for taxation, Service Industries Textiles Limited closed the nine-month period with a net loss of Rs71.81m, representing a 14.35% widening over the loss of Rs62.80m reported in the corresponding period of last year.

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