Service Industries Textiles loss widens 53% to Rs111m in FY26

October 06, 2026 (MLN): Net loss of Service Industries Textiles Limited (PSX: SERT) widened 52.75% year-on-year to Rs111.36m for the fiscal year ended June 30, 2026 (FY26), compared with Rs72.90m in FY25.

Loss per share (LPS) increased 52.74% to Rs8.08 from Rs5.29 in the preceding year.

The deeper loss was driven by a gross loss, higher administrative and finance costs and a smaller taxation credit. A surge in other income only partly offset the damage.

Revenue declined 6.88% to Rs1.28bn from Rs1.37bn in FY25. Cost of sales fell at a slower pace of 3.92% to Rs1.31bn from Rs1.36bn, resulting in a gross loss of Rs35.23m, compared with a gross profit of Rs5.59m in the previous year.

Operating expenses added to the pressure.

Distribution cost fell 6.41% to Rs8.90m from Rs9.51m, while administrative expenses rose 9.73% to Rs49.77m from Rs45.36m.

As a result, operating loss widened 90.57% to Rs93.90m from Rs49.27m.

Finance cost increased 31.53% to Rs13.92m from Rs10.58m, while other operating expenses edged down 4.99% to Rs1.35m from Rs1.42m.

Other income jumped more than 128-fold to Rs13.35m from Rs0.10m, though it was not enough to offset the operating weakness.

Loss before levy and taxation widened 56.64% to Rs95.82m from Rs61.17m. Levy declined 6.87% to Rs15.95m from Rs17.13m, taking the loss before taxation up 42.74% to Rs111.77m from Rs78.30m.

A taxation credit of Rs0.42m, down 92.27% from Rs5.40m in FY25, provided little cushion and left the net loss at Rs111.36m.

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