J.K. Spinning Mills Reports Sharp Rise in FY2026 Profit

J.K. Spinning Mills Limited has reported a significant improvement in its financial performance for the year ended June 30, 2026, with profit after taxation more than tripling compared with the previous year.

According to the company’s audited financial statements, J.K. Spinning Mills recorded profit after taxation of Rs1.58 billion in FY2026, compared with Rs513.86 million in FY2025. This represents an increase of more than 200% year-on-year. Earnings per share also climbed sharply to Rs15.45, compared with Rs5.02 a year earlier.

The company’s revenue increased modestly to Rs43.51 billion during FY2026 from Rs42.84 billion in the preceding year. At the same time, gross profit rose to Rs5.82 billion, compared with Rs4.65 billion in FY2025, reflecting a substantial improvement in gross margins.

Lower Finance Costs Support Profitability

A key factor behind the improvement in bottom-line earnings was the reduction in finance costs. J.K. Spinning Mills’ finance cost declined to approximately Rs1.31 billion during FY2026 from Rs1.80 billion in FY2025.

As a result, profit before levy and taxation increased to Rs2.95 billion, compared with Rs1.16 billion in the previous year. After accounting for levy and taxation, the company posted profit after tax of Rs1.58 billion.

Operating performance also strengthened. Profit from operations reached approximately Rs4.26 billion, up from Rs2.96 billion in FY2025, while other income increased to Rs726 million from Rs592 million.

Board Recommends Rs2 Final Cash Dividend

Alongside the financial results, the company’s Board of Directors recommended a final cash dividend of Rs2 per share, equivalent to 20%, for the year ended June 30, 2026.

The company has not recommended any bonus shares, right issue or other entitlement as part of the announcement.

Stronger Operating Cash Flow

J.K. Spinning Mills also reported a considerable improvement in cash generation from operations. Net cash generated from operating activities rose to Rs3.44 billion in FY2026 from Rs1.70 billion in FY2025.

The company invested approximately Rs1.24 billion in property, plant and equipment during the year. Despite financing outflows, cash and cash equivalents stood at Rs457 million at the end of FY2026, compared with Rs473 million a year earlier.

The company’s total equity increased to approximately Rs15.62 billion as of June 30, 2026, from Rs14.04 billion at the end of FY2025, according to the statement of financial position.

Annual General Meeting Set for October 7

The company has scheduled its Annual General Meeting for October 7, 2026, at 11:30 a.m. at its head office in Khurrianwala, Faisalabad.

The share transfer books will remain closed from September 30 to October 7, 2026, both days inclusive. The company said its annual report will also be transmitted through PUCARS at least 21 days before the AGM.

Overall, J.K. Spinning Mills closed FY2026 on a considerably stronger financial footing, marked by higher gross and operating profits, substantially lower finance costs, stronger operating cash generation and a sharp rise in earnings per share. The proposed Rs2-per-share final dividend further underscores the company’s improved profitability during the year.