Sitara Chemical profit falls 43% to Rs199m in 1QFY27

October 30, 2026 (MLN): Profit of Sitara Chemical Industries Limited (PSX: SITC) fell 42.90% year-on-year (YoY) to Rs199m in the three months ended September 30, 2026 (1QFY27), compared to Rs349m in the same period last year.

Earnings per share (EPS) came in at Rs9.30 against Rs16.29 a year earlier.

Net revenue from contracts with customers rose 11.98% YoY to Rs8.87bn from Rs7.92bn. Cost of sales climbed faster, up 12.88% to Rs7.38bn from Rs6.54bn, restricting the increase in gross profit to 7.68% at Rs1.48bn, compared to Rs1.38bn.

Operating overheads moved higher. Distribution cost went up 20.35% to Rs225m from Rs187m, while administrative expenses increased 20.93% to Rs367m from Rs303m. Other expenses, however, declined 15.57% to Rs29m from Rs34m.

The sharpest pressure came from finance cost, which surged 77.18% YoY to Rs618m from Rs349m. As a result, total expenses rose 41.84% to Rs1.24bn from Rs873m, and the subtotal after expenses fell 51.40% to Rs245m from Rs505m.

Other income edged down 3.88% to Rs67m from Rs70m. Profit before income tax and final tax declined 45.61% to Rs313m from Rs575m.

A levy of Rs111m was charged during the quarter, compared to a final tax of Rs3m in the corresponding period last year. Profit before tax thus stood at Rs202m, down 64.73% from Rs572m.

The taxation provision shrank 98.86% to Rs3m from Rs223m, cushioning the bottom line and limiting the decline in net profit to 42.90%.

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