Shabbir Tiles & Ceramics Limited: performance and outlook

Business Recorder reported that Shabbir Tiles and Ceramics Limited (PSX: STCL) posted a net loss of Rs802.10 million in 2026, equal to a loss of Rs3.35 per share. Net sales fell 14 percent as weak housing and construction activity kept demand subdued, even though macroeconomic fundamentals improved. The operating loss grew 939.71 percent to Rs659.04 million, and Thal Limited, an associated company, holds 1.30 percent of STCL's shares.

Several cost pressures compounded the decline. Capacity utilization dropped to 47.57 percent, while regional tensions pushed up fuel, freight and raw material costs and disrupted supply chains. Gross profit fell 31.72 percent and the gross margin slid to 15.77 percent, the lowest level in the review period. Finance cost rose 73.11 percent as the company relied on external borrowings, lifting its gearing ratio to 37.53 percent.

Looking ahead, the company's outlook does not foresee a major recovery in 2027. Management plans to maintain cost discipline, reduce fixed costs and invest in a 6MW Battery Energy Storage System project to optimize its energy mix. It is also implementing SAP S/4HANA Public Cloud and focusing on higher-margin products, with the stated aim of returning profit to positive territory.