Service Industries Textiles LtdPSX: SERT

Transmission of Quarterly Financial Statements for the Period Ended March 31,2026

Apr 30, 2026 at 8:50 AM UTC · Issued by Service Industries Textiles Ltd

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

COMPANY INFORMATION

BOARD OF DIRECTORS : Aamer Hameed (Chairman/Non Executive Director)

Mohammad Hameed (Chief Executive/Executive Director) Murtaza Hameed (Executive Director)

Usman Hamid Malik (Independent Director) Sara Aqeel (Independent Director)

Tariq Hameed (Non Executive Director)

Sadia Hamid (Non Executive Director) CHIEF FINANCIAL OFFICER : M. Muddasar Shahzad

COMPANY SECRETARY : Usman Khalid

AUDIT COMMITTEE : Usman Hamid Malik (Chairman)

Sara Aqeel (Member)

Tariq Hameed (Member)

HUMAN RESOURCE & : Sara Aqeel (Chairperson) REMUNERATION COMMITTEE Aamer Hameed (Member)

Usman Hamid Malik (Member)

BANKERS : Meezan Bank Limited MCB Bank Limited Bank Alfalah Limited

AUDITORS : Crowe Hussain Chaudhury & Co., Chartered Accountants

INTERNAL AUDITOR : Awan & Co.

Chartered Accountants

REGISTERED OFFICE : 38-Empress Road, Lahore

Telephones: (92-42) 36304561-3, 36367861-3

Telefax: (92-42) 3636 7861

E-mail: info@prime-service.com

MILLS : Rehman Shaheed Road, Gujrat Telephone: (92-53) 3514065, 3535085

Telefax: (92-53) 3513700

Web Reference : https://www.sitl.com.pk

Share Registrar : Corplink (Pvt) Ltd.

Wings Arcade, 1-K Commercial Model Town, Lahore

Tel: (92-42) 35839182, 35916719

Page 2

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

DIRECTORS' REPORT

31.03.2026

(Rupees 000)

(71,811)

(381,899)

(435,710)

13,685

(440,025)

(5.21)

The Directors of your Company present before you the un-audited financial statements for the nine months ended March 31, 2026. The financial results are as follows:

31.03.2025

(Rupees 000)

Net Loss for the period Accumulated loss brought forward

Transfer from surplus on revaluation

of fixed assets in respect of incremental depreciation - net of deferred tax

Accumulated Loss Loss per share - Basic

(62,798)

(318,534)

(381,332)

9,086

(372,245)

(4.55)

During the period under review, the Company incurred a net loss of Rs. 71.811 million as compared to a net loss of Rs. 62.798 million for the corresponding period of last year. Revenue for the period stood at Rs. 1,003.637 million as compared to Rs. 1,025.654 million in the previous period.

Induction of solar energy in the previous period has contributed towards a reduction in energy costs, and the Company intends to continue further investment in alternative energy solutions. The losses for the period were primarily attributable to continued pressure on yarn prices in both domestic and export markets. Weak global demand and competitive pricing from regional suppliers continued to impact margins.

The business environment remained challenging, with demand conditions subdued and competitive pressures persisting. Recent geopolitical developments, including tensions involving Iran and the United States, have contributed to volatility in fuel and logistics costs, which may impact overall production costs. In addition, constraints in the availability of raw materials have further increased cost pressures. Under these circumstances, the industry may experience operational adjustments, including temporary curtailment of production, depending on the availability of raw materials and energy supplies.

Domestic cotton production continues to remain below industry requirements in both quantity and quality. Over the past several years, cotton output has declined due to factors such as climate variability, inconsistent seed quality, ineffective pest control practices, and rising cultivation costs, resulting in reduced farmer incentives. Although certain measures have been initiated to improve crop yield and quality, sustained efforts in seed development, farmer support, modernization of ginning technology, and appropriate policy measures will be important for long-term sector stability.

The Board remains focused on addressing operational and financial challenges through prudent management and disciplined execution. Management will continue to monitor developments and take appropriate measures, within its control, to support operational continuity and improve performance.

For and on behalf of the Board of Directors

Lahore

Dated: 30.04.2026

Mohammad Hameed

Chief Executive

Aamer Hameed

Director

Page 3

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

Page 4

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED) AS AT MARCH 31, 2026

EQUITY AND LIABILITIES

Share Capital and Reserves

Authorized share capital

20,000,000 (June 30, 2025: 20,000,000)

ordinary shares of Rs. 10 each

Notes

March 31,

2026

(Un-audited)

Rupees

200,000,000

June 30,

2025

(Audited)

Rupees

200,000,000

Issued, subscribed and paid up capital 13,787,567 (June 30, 2025: 13,787,567)

ordinary shares of Rs. 10 each fully paid in cash		137,875,670	137,875,670
Share premium reserve		18,676,816	18,676,816
Accumulated loss		(440,025,495)	(381,898,671)
Surplus on revaluation of property, plant and equipment		1,226,765,929	1,240,450,974
		943,292,920	1,015,104,789
Non Current Liabilities
Long term financing	5	6,897,616	11,149,370
Staff retirement benefits		34,099,105	30,760,054
Deferred tax liability		70,894,954	69,452,037
		111,891,675	111,361,461
Current Liabilities
Trade and other payables		527,906,381	493,942,499
Unclaimed dividend		232,987	232,987
Unpaid dividends		683,162	683,629
Short term borrowings		15,018,001	21,543,000
Current portion of long term financing	5	15,736,825	12,258,575
Accrued markup		10,471,865	12,013,439
Provision for taxation		29,676,892	17,131,434
		599,726,113	557,805,563
Contingencies and Commitments	6	-	-
Total Equity and Liabilities		1,654,910,708	1,684,271,813
ASSETS
Non Current Assets
Property, plant and equipment	7	1,483,966,290	1,491,622,657
Long term deposits		27,637,243	27,337,243
		1,511,603,533	1,518,959,900
Current Assets
Stores and spares		3,662,136	3,705,447
Stock in trade		73,779,080	67,879,793
Trade debts		-	7,112,902
Advances, prepayments and other receivables		41,055,581	66,952,927
Cash and bank balances		24,810,378	19,660,844
		143,307,175	165,311,913
		1,654,910,708	1,684,271,813

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements (un-audited).

Mohammad Hameed

Chief Executive

Aamer Hameed

Director

M. Muddasar Shahzad

Chief Financial Officer

Page 5

Service Industries Textiles Limited		Quarterly Accounts March 31, 2026
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
FOR THE NINE MONTHS AND 3rd QUARTER ENDED MARCH 31, 2026
		Nine Months Ended	Nine Months Ended	3rd Quarter Ended 3rd Quarter Ended
		March 31,	March 31,	March 31,	March 31,
	Notes	2026	2025	2026	2025
		Rupees	Rupees	Rupees	Rupees
			(Un-audited)
Sales - net		1,003,636,632	1,025,654,046	328,870,123	316,576,933
Cost of sales	8	1,011,606,726) (1,034,612,204)		(329,624,168)	(331,574,903)
Gross Loss		(7,970,094)	(8,958,158)	(754,045)	(14,997,970)
Operating Expenses
Distribution expenses		(6,943,691)	(6,956,411)	(2,281,036)	(2,115,032)
Administrative expenses		(35,852,014)	(27,172,854)	(12,075,156)	(8,320,333)
		(42,795,705)	(34,129,265)	(14,356,192)	(10,435,365)
Operating Loss		(50,765,799)	(43,087,423)	(15,110,237)	(25,433,335)
Finance cost		(6,806,038)	(10,243,448)	(1,190,477)	(3,163,754)
Other operating charges		(300,000)	(534,182)	-	(198,097)
Other income		48,343	55,367	-	-
		(7,057,695)	(10,722,263)	(1,190,477)	(3,361,851)
Loss before Levy and Taxation		(57,823,494)	(53,809,686)	(16,300,714)	(28,795,186)
Levy / final taxation		(12,545,458)	(12,820,676)	(4,109,579)	(3,957,212)
Loss before Taxation		(70,368,952)	(66,630,362)	(20,410,293)	(32,752,398)
Taxation		(1,442,917)	3,832,603	2,493,436	1,423,459
Net Loss for the Period		(71,811,869)	(62,797,759)	(17,916,857)	(31,328,939)
Loss per share
- Basic & Diluted		(5.21)	(4.55)	(1.30)	(2.27)
The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements (un-audited).

(

Mohammad Hameed

Chief Executive

Aamer Hameed

Director

M. Muddasar Shahzad

Chief Financial Officer

Page 6

March 31, 2026

Quarterly Accounts

Service Industries Textiles Limited

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE NINE MONTHS AND 3rd QUARTER ENDED MARCH 31, 2026

	Nine Months Ended	Nine Months Ended	3rd Quarter Ended	3rd Quarter Ended
	March 31,	March 31,	March 31,	March 31,
	2026	2025	2026	2025
	(Un-audited) Rupees	(Un-audited) Rupees	(Un-audited) Rupees	(Un-audited) Rupees
Net Loss for the Period	(71,811,869)	(62,797,759)	(17,916,857)	(31,328,939)
Other Comprehensive Income
Items that may be reclassified
to profit or loss	-	-	-	-

Items that will not be reclassified to profit or loss

Total Comprehensive Loss for the Period

(71,811,869)

(62,797,759)

(17,916,857)

(31,328,939)

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements (un-audited).

Mohammad Hameed

Chief Executive

Aamer Hameed

Director

M. Muddasar Shahzad

Chief Financial Officer

Page 7

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE NINE MONTHS AND 3rd QUARTER ENDED MARCH 31, 2026

Particulars

Issued, Subscribed and Paid up Capital

Reserves

Surplus on Revaluation of Property, Plant and Equipment

Total

Capital Reserve -

Share Premium Reserve

Revenue Reserve -Accumulated Loss

Rupees Rupees Rupees Rupees

Balance as at June 30, 2024	137,875,670	18,676,816	(318,533,836)	1,073,333,474	911,352,124
Net loss for the period	-	-	(62,797,759)	-	(62,797,759)
Other comprehensive loss for the period	-	-	-	-	-
Total comprehensive loss for the period	-	-	(62,797,759)	-	(62,797,759)
Transferred from surplus on revaluation of property,
plant and equipment on incremental depreciation charged in current period - net of deferred tax	-	-	9,086,233	(9,086,233)	-

Balance as at March 31, 2025

Balance as at June 30, 2025

Net loss for the period

Other comprehensive income for the period

Total comprehensive loss for the period Transferred from surplus on revaluation of property,

plant and equipment on incremental depreciation charged in current period - net of deferred tax

Balance as at March 31, 2026

137,875,670 18,676,816 (372,245,362) 1,064,247,241 848,554,365

137,875,670	18,676,816	(381,898,671)	1,240,450,974	1,015,104,789
-	-	(71,811,869)	-	(71,811,869)
-	-	-	-	-
-	-	(71,811,869)	-	(71,811,869)
-	-	13,685,045	(13,685,045)	-
137,875,670	18,676,816	(440,025,495)	1,226,765,929	943,292,920

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements (un-audited).

Mohammad Hameed

Chief Executive

Aamer Hameed

Director

M. Muddasar Shahzad

Chief Financial Officer

Page 8

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE NINE MONTHS AND 3rd QUARTER ENDED MARCH 31, 2026

	9 Months Ended March 31, 2026	9 Months Ended March 31, 2025
	Rupees	Rupees
CASH FLOW FROM OPERATING ACTIVITIES
Loss before levy and taxation	(57,823,494)	(53,809,686)
Adjustments for:
- Depreciation	34,970,713	26,251,587
- Provision for gratuity	6,906,016	4,025,993
- Interest on Workers' (profit) participation fund	4,986,190	4,541,740
- Unwinding of long term financing	1,748,246	1,275,185
- Finance cost	71,602	4,426,523
	48,682,767	40,521,028
Operating (loss) / profit before working capital changes	(9,140,727)	(13,288,658)
Decrease / (increase) in current assets:
- Stores and spares	43,311	84,797
- Stock in trade	(5,899,287)	(19,407,923)
- Trade debts	7,112,902	3,239,253
- Advances, prepayments and other receivables	40,945,713	39,690,895
Increase in current liabilities:
- Trade and other payables	28,977,692	44,420,576
	71,180,331	68,027,598
Cash Generated from Operations	62,039,604	54,738,940
Income tax paid (	15,048,367)	(15,977,140)
Finance cost paid	(1,613,176)	(2,062,555)
Gratuity paid	(3,566,965)	(2,713,694)
Net Cash Generated from Operating Activities	41,811,096	33,985,551
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(27,314,346)	(23,022,060)
Long term deposits paid	(300,000)	(3,773,160)
Net Cash Used in Investing Activities	(27,614,346)	(26,795,220)
CASH FLOW FROM FINANCING ACTIVITIES
Long term financing repaid	(2,521,750)	(9,335,390)
Dividend paid	(467)	-
Short term borrowings	(6,524,999)	(2,402,000)
Net Cash Used in from Financing Activities	(9,047,216)	(11,737,390)
Net (Decrease) / Increase in Cash and Cash Equivalents	5,149,534	(4,547,059)
Cash and cash equivalents at the beginning of the period	19,660,844	24,347,846
Cash and Cash Equivalents at the End of the Period	24,810,378	19,800,787

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements (un-audited).

Mohammad Hameed

Chief Executive

Aamer Hameed

Director

M. Muddasar Shahzad

Chief Financial Officer

Page 9

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE NINE MONTHS AND 3rd QUARTER ENDED MARCH 31, 2026

Note 1

The Company and its Operations

Service Industries Textiles Limited (the Company) was incorporated in Pakistan in 1962 as a Private Limited Company under the Companies Act 1913, (now the Companies Act, 2017) and was subsequently converted into a Public Limited Company in 1970. The Company is listed on Pakistan Stock Exchange. The principal activity of the Company is manufacturing and sale of yarn made from raw cotton and synthetic fiber.
The Company is domiciled in Pakistan and its registered office is situated at 38-Empress Road, Lahore, whereas the production plant of the Company is located at Rehman Shaheed Road, Gujrat.

Note 2

Basis of Preparation

These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise:
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;
- Provisions of, directives and notifications issued under the Companies Act, 2017.
- Where the provisions of, directives and notifications issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of, directives and notifications issued under the Companies Act, 2017 have been followed.
These condensed interim financial statements comprise of the condensed interim statement of financial position of the Company, as at March 31, 2026 and the related condensed interim statement of profit or loss, the condensed interim statement of comprehensive income, the condensed interim statement of changes in equity and the condensed interim statement of cash flows together with the notes forming part thereof.
These condensed interim financial statements (unaudited) do not include all of the information required for full annual financial statements and should be read in conjunction with the audited annual financial statements for the year ended June 30, 2025.
The comparative statement of financial position presented in these condensed interim financial statements has been extracted from the audited annual financial statements of the Company for the year ended June 30, 2025, whereas the comparative condensed interim statement of profit or loss, the condensed interim statement of comprehensive income, the condensed interim statement of changes in equity and the condensed interim statement of cash flows have been extracted from the un-audited condensed interim financial statements for the nine months period ended March 31, 2025.
These condensed interim financial statements are presented in Pak rupees (Rs.), which is the Company's functional and presentation currency. Figures have been rounded off to nearest thousand rupees, unless stated otherwise. These condensed financial statements do not include all the information required for annual financial statements and therefore, should be read in conjunction with the annual financial statements of the Company for the year ended June 30, 2025.
Functional and presentation currency

These condensed interim financial statements are presented in Pak Rupees, which is the Company's functional and presentation currency. All the figures have been rounded off to the nearest rupees, unless otherwise stated.

Page

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

Note 3

Material Accounting Policy Information

Material accounting policy information and methods of presentation of these condensed interim financial statements (unaudited) are the same as those followed in the preparation of annual financial statements for the preceding financial year ended June 30, 2025.

Note 4

Judgments and Estimates

The preparation of these condensed interim financial statements (unaudited) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

		March 31, 2026
	Note	(Un-audited)
		Rupees
Related parties - Unsecured
Loan from Directors / Related
parties - Undiscounted amount	5.1	23,407,945
Unwinding of discount		1,748,246
Repayment		(2,521,750)
		22,634,441
Less: Current and overdue portion		(15,736,825)
		6,897,616

Note 5

Long Term Financing

June 30, 2025

(Audited)

Rupees

30,963,153

1,780,182

(9,335,390) 23,407,945

(12,258,575) 11,149,370

This represents financing obtained from directors / related parties from time to time, to meet the liquidity requirements of the Company. This loan is repayable in equal monthly installments of Rs. 1 million each. This loan is unsecured and carries markup @ 10% per annum (June 30, 2025: 10% per annum). Pursuant to the change in Company's policy, effective from 1st July 2022, this subsidized loan has been recognised at fair value being the present value of the future outflows as per the agreed loan repayment schedule. The difference between the fair value of loan and actual receipt (carrying amount) has been recognized as other income. During the period, the unwinding of discount of Rs. 1,748,246 (June 30, 2025: Rs. 1,780,182) has been recognized as part of finance cost in the condensed interim statement of the profit or loss (unaudited).

Note 6

Contingencies and Commitments

Contingencies
There has been no change in status of contingencies as reported in the annual audited financial statements for the year ended June 30, 2025.
Commitments

There are no material commitments outstanding as at the reporting date (June 30, 2025: Nil).

Page 11

Note 7

Service Industries Textiles Limited

Property, Plant and Equipment

March 31, 2026 June 30, 2025

Note (Un-audited) (Audited)

Rupees Rupees

Opening written down value

Additions during the period / year Disposal during the period / year

7.1

Depreciation charge for the period / year

1,491,622,657 1,284,419,194

27,314,346 34,819,345

- -1,518,937,003 1,319,238,539

(34,970,713) (35,237,249)

1,483,966,290 1,491,622,657

March 31, 2026

Quarterly Accounts

7.1 Breakup of Additions Plant and machinery Solar panel

Electric fittings, equipment and appliances Vehicles

4,250,000

2,032,170

21,032,176

27,314,346

-34,634,345

185,000

-34,819,345

Note 8

Cost of Sales	Nine Months Ended		Nine Months Ended	3rd Quarter Ended	3rd Quarter Ended
	March 31, 2026		March 31, 2025	March 31, 2026	March 31, 2025
	(Un-audited)		(Un-audited)	(Un-audited)	(Un-audited)
	Rupees		Rupees	Rupees	Rupees
Raw material consumed	608,725,024		604,203,373	198,633,572	195,908,120
Stores and spares consumed	3,524,440		2,673,240	1,220,879	789,296
Packing material consumed	10,299,853		8,486,573	3,438,548	2,572,946
Fuel and power	247,382,066		289,853,862	78,314,622	85,828,007
Salaries, wages and other benefits	103,704,758		98,920,911	35,128,141	36,134,098
Insurance	1,573,640		818,449	138,838	120,000
Repairs and maintenance	919,538		2,607,525	136,520	1,044,138
Depreciation	33,222,177		25,886,395	11,541,123	8,996,524
Cost of goods manufactured 1	,009,351,496	1	,033,450,328	328,552,243	331,393,129
Work in process:
- Opening	18,896,387		19,769,551	18,064,315	18,888,575
- Closing	(16,830,151)		(18,474,375)	(16,830,151)	(18,474,375)
	2,066,236		1,295,176	1,234,164	414,200
	1,011,417,732	1	,034,745,504	329,786,407	331,807,329
Finished goods:
- Opening	5,382,885		5,396,536	5,031,652	5,297,410
- Closing	(5,193,891)		(5,529,836)	(5,193,891)	(5,529,836)
	188,994		(133,300)	(162,239)	(232,426)
1	,011,606,726	1	,034,612,204	329,624,168	331,574,903

Page

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

Note 9

Financial Risk Management

The Company's financial risk management objectives and policies are consistent with those disclosed in preceding audited annual financial statements for the year ended June 30, 2025.

Note 10

Balances and Transactions with Related Parties

Related parties comprise directors, associates of the Company, their close relatives and key management personnel. The Company in the normal course of business carries out transactions with various related parties. Significant transactions with related parties and balances due to / from them are as under:

March 31, 2026	March 31, 2025
(Un-audited)	(Un-audited)
Rupees	Rupees
2,521,750	9,335,390
1,748,246	2,363,968
6,906,016	6,038,989
March 31,	June 30,
2026	2025
(Un-audited)	(Un-audited)
Rupees	Rupees
22,634,441	23,407,945
10,471,865	12,013,439
15,018,001	21,543,000

Transaction during the period

Relationship Transactions during the period

Directors Repayment of loan Markup accrued

Post employment benefit plans Salaries and other employee benefits

Balances outstanding as at,

Directors Long term financing Accrued markup on

long term financing

Short term borrowing

Page

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

Note 11

Operating Segment Information

Operating segments are reported in a manner consistent with the internal reporting used by the Chief Operating Decision Maker. The Chief Executive Officer (CEO) of the Company performs function of the Chief Operating Decision Maker, who is responsible for allocating resources and assessing performance of the operating segments.

The CEO is responsible for the Company's entire product portfolio and considers business as a single operating segment. The Company's assets allocation decisions are based on a single integrated investment strategy and the Company's performance is evaluated on an overall basis.

The internal reporting provided to the CEO for the Company's assets, liabilities and performance is prepared on a basis consistent with the measurement and recognition principles of approved accounting standards as applicable in Pakistan. The Company is domiciled in Pakistan. All of the Company's income is from the entities incorporated in Pakistan.

Note 12

Authorization of Financial Statements

These condensed interim financial statements (un-audited) are approved and authorized by the Board of Directors of the Company for issuance on April 30th, 2026.

Note 13

General

Corresponding figures have been re-arranged / reclassified, wherever necessary, for better presentation of the financial statements. No re-arrangements / reclassifications have been made in these financial statements.

Mohammad Hameed

Chief Executive

Aamer Hameed

Director

M. Muddasar Shahzad

Chief Financial Officer

Page

Quarterly Accounts

March 31, 2026

Service Industries Textiles Limited

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