Service Industries Textiles 9MFY26 Loss Widens 14% to Rs72 Million

Service Industries Textiles, a Lahore-based yarn maker founded in 1962, sank deeper into the red in the first nine months of its 2026 financial year. The company reported the result for the period ended March 2026, and the headline is a wider loss despite a small improvement at the product level.

What the Service Industries Textiles results showed

Service Industries Textiles posted a net loss of Rs71.81 million for the nine months ended March 2026, about 14 percent wider than the Rs62.80 million loss in the same period a year earlier. The loss per share widened to Rs5.21 from Rs4.55. Net sales eased around 2 percent to Rs1 billion from Rs1.03 billion. The company still operated at a gross loss, meaning the cost of making its yarn was higher than what it sold for, though that gross loss narrowed by about 11 percent to Rs7.97 million.

The reason the bottom-line loss grew even as the gross loss shrank is costs below the production line. Administrative expenses jumped roughly 32 percent to Rs35.85 million, which more than wiped out the small gain at the product level.

Why the result matters for textile spinning stocks

Small pure spinners have been the most exposed corner of Pakistan's textile chain. Soft yarn demand, high energy costs and competition from imported yarn have left several of them making a gross loss, where they cannot even cover the direct cost of production. Service Industries Textiles fits that pattern. Selling yarn for less than it costs to make is a sign of weak pricing power and underused capacity. When a company is in that position, even tight cost control struggles to pull it back to break-even.

The slight narrowing of the gross loss hints that conditions at the product level are not getting worse, but the jump in overheads shows the company has not yet found a path back to profit.

Which stocks, and why

This is a direct, company-specific result for Service Industries Textiles, and the read is negative. A wider net loss, a continued gross loss and a sharp rise in administrative costs point to ongoing strain in a small spinning operation. The influence is high because sustained losses are central to how the company is valued. The standing question is whether yarn demand and pricing recover enough to lift the mill above its cost of production.

What to watch

The signals to track are the cotton-to-yarn spread, energy costs, the trend in administrative expenses, and whether the gross loss turns into a gross profit. Any move back toward break-even at the product level would be the first sign the business is stabilising.