KARACHI: Gadoon Textile Mills Limited reported a significant decline in profitability for the nine months ended March 31, 2026, as higher energy costs, rising conversion expenses, and persistent margin pressures offset the benefits of increased sales. The company announced its financial results following a meeting of its Board of Directors held on April 28, 2026. No cash dividend, bonus shares, or right shares were declared.
The textile manufacturer posted net sales of Rs. 56.55 billion, up 2.15% from Rs. 55.35 billion recorded during the corresponding period last year. However, gross profit fell sharply by 35.3% to Rs. 3.30 billion, reflecting the impact of elevated production and energy costs on margins.
Profit after tax declined by 58.16% to Rs. 837.89 million, compared with Rs. 2.00 billion in the same period last year. Consequently, earnings per share (EPS) dropped to Rs. 29.89, down from Rs. 71.45 a year earlier.
The company attributed the weaker earnings to elevated conversion costs, particularly higher gas tariffs and energy prices, which outweighed the gains from increased sales volumes. Although finance costs edged down by 1.75%, higher working capital requirements and capital expenditures on renewable energy and energy-efficient equipment continued to weigh on the bottom line.
Management noted that overall sales volumes remained resilient despite continued pressure on yarn prices. The spinning segment maintained volumes through a diversified product mix and proactive market outreach, while the knitted bedding business preserved its volumes and margins by leveraging favorable raw material sourcing and strong customer relationships.
Looking ahead, Gadoon Textile Mills expects Pakistan’s economy to continue its gradual recovery but warned that the textile sector remains exposed to high energy tariffs, volatile domestic cotton prices, increasing competition from imported yarn, and liquidity constraints arising from delayed tax refunds. The company said it will continue focusing on cost optimization, operational efficiency, capacity utilization, and expanding into value-added products to strengthen long-term profitability.
