Kohinoor Textile Mills’ Profit Falls 36% in Nine Months as Quarterly Results Turn Negative
Kohinoor Textile Mills Limited (KTML) reported a consolidated profit after tax of Rs12.37 billion for the nine months ended March 31, 2026, down significantly from Rs19.49 billion recorded in the same period last year.
According to the company’s unaudited financial results, revenue increased to Rs101.63 billion during the nine-month period, compared with Rs96.28 billion a year earlier, showing continued growth in the company’s top line. However, higher expenses and other factors weighed on overall profitability.
Quarterly performance weakens
The company’s consolidated performance was particularly challenging during the third quarter. For the quarter ended March 31, 2026, KTML posted a loss after taxation of Rs6.38 billion, compared with a profit of Rs5.30 billion in the corresponding quarter of the previous year.
The quarterly loss translated into a loss per share of Rs4.16, compared with earnings per share of Rs2.85 in the same quarter last year. On a nine-month basis, consolidated earnings per share declined to Rs6.49 from Rs10.79.
Gross profit remains positive
Despite the decline in bottom-line earnings, the group generated a gross profit of Rs27.06 billion during the nine months, compared with Rs26.18 billion in the same period last year.
The financial statement shows distribution costs of around Rs4.02 billion, administrative expenses of Rs4.94 billion, and other expenses of Rs6.16 billion during the period. These costs, together with finance costs and other factors, reduced the amount flowing through to the bottom line.
Standalone results show improvement
KTML’s unconsolidated results present a somewhat stronger picture. The company’s standalone revenue stood at Rs44.93 billion for the nine months ended March 31, 2026, broadly in line with Rs44.94 billion in the same period last year.
Standalone profit after taxation, however, increased to Rs2.26 billion from Rs2.01 billion, while earnings per share improved to Rs1.68 from Rs1.49.
Cash generation improves
The company also reported stronger consolidated cash generation from operating activities. Net cash generated from operations reached Rs35.24 billion in the nine-month period, compared with Rs20.33 billion in the corresponding period of 2025.
However, investing activities consumed approximately Rs119.94 billion, largely reflecting capital expenditure, investments and other investment-related outflows. Financing activities generated Rs85.95 billion, helping offset a substantial portion of the investment-related cash outflow. Cash and cash equivalents stood at approximately Rs3.46 billion at March 31, 2026.
The company’s board, at its April 22 meeting, did not recommend any cash dividend, bonus or right shares for the period.
Overall, Kohinoor Textile Mills’ latest results show a mixed picture: revenue and operating cash generation improved, while consolidated profitability came under considerable pressure, particularly in the third quarter. The contrasting performance between the consolidated and standalone results will remain an important point for investors assessing the company’s financial position.
