Kohinoor Spinning Mills Limited has reported a narrower financial loss for the nine-month period ended March 31, 2026, reflecting improved operational performance despite continued headwinds facing Pakistan’s textile sector. The company’s latest unaudited quarterly financial statements indicate that management remains focused on navigating rising production costs and volatile market conditions.
According to the company’s directors, Kohinoor Spinning Mills posted a net loss after taxation of Rs. 83.90 million during the nine months ended March 31, 2026, compared with a net loss of Rs. 108.48 million recorded in the corresponding period last year. The improvement highlights the company’s efforts to mitigate the impact of persistent economic challenges and cost pressures.
For the third quarter alone, the company incurred a loss after tax of Rs. 49.42 million, compared with a loss of Rs. 61.45 million in the same quarter of the previous year, indicating a gradual recovery in financial performance.
During the nine-month period, Kohinoor Spinning Mills generated net sales of Rs. 132.00 million, while the cost of sales stood at Rs. 158.00 million, resulting in a gross loss of Rs. 26.00 million. Operating expenses were contained at Rs. 118.95 million, while finance costs remained significant at Rs. 33.41 million, continuing to weigh on profitability.
The company also informed shareholders that the Securities and Exchange Commission of Pakistan (SECP) has approved an extension for the issuance of a 5% right issue. Under the revised schedule, shareholders will receive one ordinary share for every twenty existing shares at an issue price of Rs. 7 per share, including a premium of Rs. 2 per share, with the company aiming to raise Rs. 82.0 million to strengthen its working capital and repay a portion of its unsecured loan from directors.
Commenting on the business environment, the Board noted that the textile industry continues to face significant challenges, including elevated energy prices, supply chain disruptions, and subdued demand in both domestic and export markets. These factors have placed pressure on production costs and profit margins, although the company remains committed to closely monitoring market developments and implementing measures to improve operational efficiency.
Looking ahead, Kohinoor Spinning Mills intends to focus on prudent financial management, efficient resource utilization, and capital strengthening initiatives as it works to improve its financial position amid a challenging industry landscape.
