Faisal Spinning Mills Limited has reported a wider net loss for the nine months ended March 31, 2026, as rising finance costs and higher operating expenses outweighed the company’s strong growth in sales revenue. The financial results were released through the company’s condensed interim financial statements.

During the nine-month period, the textile manufacturer posted sales of Rs34.21 billion, compared with Rs25.92 billion in the corresponding period last year, reflecting a significant increase in revenue driven by improved business activity. Gross profit also edged up to Rs2.54 billion from Rs2.65 billion a year earlier.

However, the company’s profitability remained under pressure. Faisal Spinning reported a net loss after tax of Rs564.94 million, substantially higher than the Rs305.73 million loss recorded during the same period last year. Consequently, loss per share increased to Rs56.49, compared with Rs30.57 in the corresponding period of 2025.

The financial performance was affected by a sharp rise in finance costs, which climbed to approximately Rs1.25 billion from Rs1.04 billion in the previous year. Distribution and administrative expenses remained significant, while other operating expenses also weighed on the bottom line despite the company generating higher other income during the period.

On a quarterly basis, Faisal Spinning recorded a loss after tax of Rs206.76 million for the three months ended March 31, 2026, compared with a profit of Rs43.30 million in the same quarter of the previous year, highlighting the challenging operating environment faced by the company.

The company’s financial position also reflected a decline in retained earnings. Unappropriated profits stood at Rs433.14 million as of March 31, 2026, down from Rs998.08 million at the end of June 2025, while total equity decreased to Rs11.61 billion.

Despite the losses, Faisal Spinning generated positive cash flow from operating activities amounting to Rs4.92 billion, demonstrating the strength of its core operations. However, substantial financing outflows and debt repayments resulted in a net decrease in cash and cash equivalents during the period.

The latest results underscore the challenges facing Pakistan’s textile sector, where higher borrowing costs and persistent financial pressures continue to impact profitability despite improvements in sales volumes. Investors will likely monitor the company’s efforts to manage financing expenses and restore profitability in the coming quarters.