⚡ Flash Summary

Sana Industries Limited (SIL) reported a drop in revenues by 25+% in 2025. Gross profits decreased from PKR 300.43 million in 2024 to PKR 203.36 million in 2025. However, other income increased by PKR 321 million, mainly from investment property. The company is focusing on transitioning towards renewable energy and gradual settlement of bank borrowings to enhance profitability and cash flow stability.

📌 Key Takeaways

• 📉 Revenue declined by 25+% in 2025.
• 💰 Gross Profits decreased to PKR 203.36 million from PKR 300.43 million in 2024.
• 📊 Gross Profit margin increased slightly from 7.9% to 8.4%.
• ⚡️ Energy to rest of COS ratio improved from 75:25 to 65:35.
• 💸 EBITDA decreased from PKR 196.19 million to PKR 116.92 million.
• 🏦 Finance Costs decreased from PKR 249.99 million to PKR 192.98 million.
• ⬆️ Other receivables increased by PKR 276 million.
• ⬇️ Short term loans decreased by PKR 95 million.
• 🏢 Investment Properties of BV Rs. 99M were sold.
• 💡 Loans and Advances increased by PKR 113 million.
• 🌱 Focus on transitioning to renewable energy for cost reduction.
• 🏦 Gradual settlement of bank borrowings to reduce leverage.
• ✅ Aim to enhance profitability and cash flow stability in coming quarters.
• ✨ Net profit after tax (% to sales) improved from -2% to 5%.

🎯 Investment Thesis

HOLD. The company’s financials show a decline in revenue and EBITDA. While there are efforts to improve profitability through energy management and debt reduction, the current financial performance does not warrant a buy recommendation. A sell recommendation is not appropriate either, as the company is taking steps to address its challenges. A hold rating is more suitable until there’s evidence that these initiatives are positively impacting revenue and profitability. The price target is dependent on successful execution of the energy management and debt reduction strategies. Further analysis of future performance is warranted.