KARACHI: Feroze1888 Mills Limited has reported a sharp improvement in profitability for the financial year ended June 30, 2026, with consolidated net profit rising to Rs803.37 million, compared with Rs99.02 million recorded in the previous year.

According to the company’s financial statements, sales increased modestly to Rs67.73 billion during FY2026 from Rs66.11 billion a year earlier. Despite the limited growth in revenue, the company delivered a substantial improvement in its bottom line, reflecting stronger operating performance and lower financial costs.

Profitability Shows Strong Recovery

Feroze1888 Mills’ consolidated gross profit stood at Rs8.41 billion in FY2026, compared with Rs9.07 billion in FY2025. However, operating profit improved to Rs3.81 billion from Rs3.70 billion.

A major positive factor was the reduction in finance costs, which fell to approximately Rs2.45 billion from Rs3.07 billion in the previous year. As a result, profit before levies and income tax increased significantly to Rs1.63 billion, compared with Rs631.50 million in FY2025.

After accounting for levies and taxation, consolidated profit before income tax reached Rs924.74 million, compared with a loss of Rs46.94 million in the preceding year. Net profit subsequently came in at Rs803.37 million, more than eight times the previous year’s earnings.

Earnings Per Share Improve Sharply

The company’s improved profitability was also reflected in shareholder earnings. Consolidated earnings per share (EPS) increased to Rs2.01 in FY2026 from Rs0.25 in FY2025.

The stronger earnings position also lifted accumulated profit, which reached Rs25.44 billion at June 30, 2026, compared with Rs24.64 billion a year earlier. Total equity increased to approximately Rs34.56 billion from Rs33.76 billion.

Cash Position Remains Positive

The company generated Rs353.10 million in net cash from operating activities during FY2026, reversing the net operating cash outflow of Rs1.08 billion recorded in FY2025.

Feroze1888 Mills also recorded net cash used in investing activities of approximately Rs1.44 billion, primarily reflecting capital expenditure. Financing activities generated net cash of around Rs1.50 billion.

As a result, cash and cash equivalents stood at Rs718.62 million at the end of FY2026, compared with Rs308.35 million at the end of FY2025.

No Dividend or Bonus Shares Announced

Despite the significant improvement in profitability, the company has announced no cash dividend, bonus shares or right shares for the year ended June 30, 2026. The company also reported no other corporate action or price-sensitive information in its announcement.

Annual General Meeting Set for October 27

Feroze1888 Mills said its Annual General Meeting (AGM) will be held on October 27, 2026, at 4:00 p.m. at C3, SITE, Karachi. The company’s share transfer books will remain closed from October 20 to October 27, 2026, subject to the conditions outlined in the company’s notice.

Overall, Feroze1888 Mills closed FY2026 with a substantially stronger bottom line despite relatively modest sales growth. The sharp improvement in net profit, EPS and operating cash generation marks a notable recovery in the company’s financial performance during the year.