⚡ Flash Summary

Sana Industries Limited reported a challenging quarter ended September 30, 2025. The company experienced a significant drop in consolidated revenues, leading to a substantial loss after taxation. This decline in profitability is primarily attributable to reduced revenues and increased finance costs. Management will need to address operational inefficiencies and explore avenues to improve financial performance.

📌 Key Takeaways

• 📉 Consolidated revenue decreased by approximately 56% YoY, from PKR 1,295.85 million in Sep 2024 to PKR 570.50 million in Sep 2025.
• ❌ Loss after taxation was PKR 45.23 million in Sep 2025 compared to a loss of PKR 36.78 million in Sep 2024.
• ⚠️ Earnings per share (EPS) deteriorated from PKR -1.71 in Sep 2024 to PKR -2.11 in Sep 2025.
• 💰 Finance costs decreased from PKR 58.10 million to PKR 33.53 million
• 🚧 Administrative expenses decreased from PKR 37.18 million to PKR 33.37 million
• 💸 Cash and cash equivalents increased significantly from PKR 14.99 million to PKR 80.00 million.
• 📉 Unsecured trade debts increased from PKR 630.54 million to PKR 647.02 million
• 📊 Total equity decreased from PKR 874.58 million in Jun 2025 to PKR 829.35 million in Sep 2025.
• liabilities increased from 2,010,760,923 to 2,103,517,939
• Inventory increased from 218,327,400 to 153,703,937
• Other receivables increased from 465,404,591 to 497,786,294

🎯 Investment Thesis

Given the sharp decline in revenue, continued losses, and increased financial strain, a SELL recommendation is warranted for Sana Industries. The company needs to undertake significant restructuring. Without substantial improvements, the downside risk outweighs any potential upside.