KARACHI: Shadman Cotton Mills Limited has reported a net loss for the nine months ended March 31, 2026, despite recording higher revenue during the period, reflecting continued pressure from rising production costs and operating expenses. The company also announced that its board has decided not to recommend any cash dividend, bonus shares, or right shares for shareholders.
According to the company’s unaudited financial results, net turnover increased to Rs474.98 million during the nine-month period, compared with Rs404.89 million in the corresponding period last year. However, the company posted a net loss after tax of Rs26.68 million, a sharp reversal from the net profit of Rs3.70 million reported a year earlier. Earnings per share (EPS) also turned negative, with a loss of Rs1.51 per share, compared with earnings of Rs0.21 per share in the same period last year.
For the quarter ended March 31, 2026, Shadman Cotton Mills recorded a net loss after tax of Rs21.93 million, compared with a net profit of Rs1.09 million in the corresponding quarter of the previous year. Quarterly loss per share stood at Rs1.24, versus earnings of Rs0.06 per share a year earlier.
The financial statements indicate that while sales improved during the period, the benefit was offset by a significant increase in the cost of sales, resulting in a gross loss. Higher administrative expenses, finance costs, and other operating charges further weighed on profitability.
The Board of Directors approved the unaudited financial statements at its meeting held on April 27, 2026, and confirmed that no cash dividend, bonus shares, right shares, or any other entitlement would be distributed for the period.
The company stated that its complete nine-month financial report for the period ended March 31, 2026, will be transmitted through PUCARS within the prescribed timeframe.
