KARACHI: Feroze1888 Mills Limited has reported a return to profitability for the nine months ended March 31, 2026, supported by higher sales and improved operating performance, although the company posted a significantly weaker result during the third quarter.

According to the company’s financial results, net sales for the nine-month period rose to Rs49.68 billion, compared with Rs47.33 billion in the corresponding period last year, reflecting steady demand for the company’s textile products. Gross profit, however, declined to Rs5.62 billion from Rs6.55 billion, indicating continued pressure on production costs and margins.

Despite the decline in gross profitability, Feroze1888 benefited from a sharp increase in other income, which more than doubled to Rs1.62 billion from Rs723 million a year earlier. This helped offset higher finance costs and operating expenses, enabling the company to improve its bottom line.

For the nine months, the company reported a net profit of Rs98.58 million, a notable recovery from Rs13.69 million recorded in the same period last year. Earnings per share (EPS) increased to Rs0.25, compared with Rs0.03 in the corresponding period of FY2025.

However, the March quarter presented a more challenging picture. Quarterly sales fell to Rs17.33 billion from Rs19.08 billion a year earlier, while gross profit declined to Rs1.94 billion from Rs3.07 billion. Net profit for the quarter dropped sharply to Rs41.01 million, compared with Rs388.19 million in the same quarter last year, reflecting continued pressure on margins and financing costs.

On the balance sheet, total assets increased to Rs87.40 billion as of March 31, 2026, from Rs83.82 billion at the end of June 2025. Current assets expanded primarily due to higher inventories and advances, while shareholders’ equity improved to Rs33.85 billion, supported by retained earnings during the period.

The Board of Directors did not announce any cash dividend, bonus shares, or right shares along with the financial results.

The latest results indicate that while Feroze1888 Mills has managed to restore profitability over the nine-month period, the weak third-quarter performance highlights the ongoing challenges facing Pakistan’s textile sector, including rising financing costs, margin compression, and a difficult operating environment. Investors will be closely watching whether the company can sustain its recovery in the final quarter of the financial year.