ISLAMABAD: Elahi Cotton Mills Limited has reported a significant financial setback for the nine months ended March 31, 2026, posting a net loss after tax of Rs24.85 million, compared with a net profit of Rs17.14 million recorded during the corresponding period last year. The company’s latest unaudited financial results were approved by the Board of Directors in its meeting held on April 28, 2026.
The deterioration in earnings was driven by weaker sales and a sharp contraction in gross profit. Net sales declined to Rs722.16 million during the nine-month period, down from Rs779.43 million a year earlier. Gross profit also plunged to Rs2.61 million, compared with Rs41.33 million in the same period last year, reflecting mounting pressure on production costs and profitability.
The company reported an operating loss of Rs15.79 million, reversing an operating profit of Rs26.71 million recorded in the previous year’s corresponding period. After accounting for finance costs and minimum tax, the loss before tax widened to Rs24.85 million, resulting in a loss per share (LPS) of Rs19.11, compared with earnings per share (EPS) of Rs13.19 in the same period last year.
For the third quarter alone, Elahi Cotton Mills posted a net loss of Rs6.07 million, compared with a net profit of Rs1.29 million in the corresponding quarter of the previous year. Quarterly sales also eased to Rs227.62 million from Rs235.26 million, highlighting continued pressure on the company’s operations.
On the financial position front, total assets increased to Rs295.45 million as of March 31, 2026, from Rs276.53 million at the end of June 2025. Cash and bank balances improved significantly to Rs25.69 million, while accumulated losses widened to Rs81.76 million, reducing shareholders’ equity to Rs67.83 million.
The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or any other corporate action for the period under review.
