⚡ Flash Summary

Service Industries Textiles Ltd. reported a net loss of PKR 9.83 million for the quarter ended September 30, 2025, a significant decline compared to the net loss of PKR 1.67 million in the same quarter last year. Revenue decreased to PKR 335.15 million from PKR 371.76 million year-over-year. The company experienced operating losses due to increased operating expenses and finance costs. No cash dividend, bonus shares, or right shares were recommended by the board.

📌 Key Takeaways

• 📉 Net loss significantly increased to PKR 9.83 million compared to PKR 1.67 million last year.
• Revenue decreased by 9.85% to PKR 335.15 million from PKR 371.76 million year-over-year. Revenue decreased to PKR 335.15 million from PKR 371.76 million year-over-year. 📉
• Cost of sales decreased to PKR 325.49 million from PKR 355.80 million. 📉
• Gross profit decreased to PKR 9.66 million from PKR 15.95 million. 📉
• Operating expenses increased to PKR 12.43 million from PKR 9.97 million. 📈
• Operating loss was PKR 2.76 million compared to an operating profit of PKR 5.98 million in the previous year. 📉
• Finance costs decreased slightly to PKR 2.12 million from PKR 2.84 million. 📉
• Loss per share (basic and diluted) was PKR 0.71 compared to a loss of PKR 0.12 last year. 📉
• No cash dividend was declared. 🚫
• No bonus shares were announced. 🚫
• No right shares were offered. 🚫
• Total Equity and Liabilities decreased to PKR 1,634.80 million from PKR 1,684.27 million as of June 30, 2025. 📉
• Cash and bank balances decreased to PKR 105.42 million from PKR 165.31 million. 📉
• Net cash generated from operating activities was PKR 22.67 million, a significant decrease from the previous year. 📉
• Net cash used in investing activities was PKR 21.56 million, similar to the previous year. 💸

🎯 Investment Thesis

Based on the reported financial results, a SELL recommendation is warranted. The company’s declining profitability, increased losses, and reduced revenue indicate significant challenges. A price target cannot be accurately set without more detailed financial projections and a turnaround strategy, but the current trend suggests further downside risk. Time horizon: Short-term.