Shabbir Tiles swings to a loss amidst continued construction slowdown

Shabbir Tiles & Ceramics Ltd, the maker of Stile-branded tiles, sinks and sanitary ware, has slipped into the red as Pakistan’s construction malaise stretches into a second year. Management points to weak homebuilding and deferred renovation demand, expensive energy and logistics, and a structural cost handicap versus Punjab-based rivals. The company says it is leaning into niches – especially porcelain – while cutting its energy bill with solar, but stresses that a demand recovery hinges on easier monetary conditions and improved gas availability over the coming quarters.

STCL reported a loss per share of Rs0.80 for FY25, a sharp reversal from earnings per share of Rs1.34 in FY24. The weak run-rate persisted into the new financial year: 1QFY26 loss per share was Rs0.80, versus Rs0.36 in the same quarter last year. Net sales fell 11% year-on-year to Rs13,846 million in FY25 as volumes and pricing buckled under sector-wide pressure; gross profit slid 24%, driving the gross margin down to 20% from 23% a year earlier. The company swung from operating profit of Rs733 milion in FY24 to an operating loss of Rs141 million in FY25, while EBITDA more than halved to Rs618 million. The deterioration accelerated on a quarterly basis in 1QFY26, when net sales fell 11% and the gross margin eased to 16%, locking in a quarterly net loss that matched the full-year FY25 per-share loss.