Sally Textile Mills Limited has reported a loss after taxation of Rs30.57 million for the financial year ended June 30, 2026, as the company continued to face a challenging financial position.
According to the company’s financial results, the loss widened from Rs29.20 million recorded in the previous financial year. The company’s earnings per share also declined to a loss of Rs3.48 per share, compared with a loss of Rs3.33 per share in FY2025.
No Revenue Reported During the Year
One of the most notable features of the company’s FY2026 results is that no revenue from contracts with customers was reported. With no operating revenue, the company recorded a gross loss of Rs28.56 million, compared with a gross loss of Rs29.97 million in the previous year.
Administrative expenses increased to Rs10.11 million from Rs7.76 million, taking the total operating loss to Rs38.67 million, compared with Rs37.73 million in FY2025.
The figures highlight the pressure facing the company, particularly as expenses continued despite the absence of reported revenue.
Equity Position Remains Under Pressure
Sally Textile Mills’ financial position also remained challenging at the end of FY2026. Total equity stood at negative Rs512.87 million, compared with negative Rs493.04 million a year earlier.
Accumulated losses increased to Rs1.67 billion from Rs1.64 billion. Meanwhile, the loan from sponsors rose to Rs872.27 million from Rs861.52 million.
The company reported total assets of approximately Rs1.44 billion at June 30, 2026. Property, plant and equipment accounted for Rs667.82 million, while current assets totaled approximately Rs760.06 million.
Cash Position Remains Limited
The company ended the financial year with cash and bank balances of only Rs2.63 million, unchanged from the previous year.
Cash used in operating activities amounted to Rs10.75 million during FY2026. This amount was matched by Rs10.75 million in financing inflows through loans obtained from sponsors. As a result, there was effectively no net change in cash and cash equivalents during the year.
This suggests that sponsor financing played an important role in meeting the company’s operating cash requirements during the year.
No Dividend or Bonus Shares Announced
The company’s Board of Directors did not recommend a cash dividend, bonus shares, right shares or any other entitlement for shareholders for the year ended June 30, 2026.
The Annual General Meeting is scheduled to take place on October 23, 2026, at 10:30 a.m. at the company’s registered office in Lahore. The share transfer books will remain closed from October 17 to October 23, 2026.
Looking Ahead
Sally Textile Mills enters the new financial year with several financial challenges. The absence of reported revenue, continued losses, negative equity and reliance on sponsor financing remain key areas for investors to watch.
At the same time, the company’s financial statements provide a clear picture of its current position and the need for improved operating performance. A return to revenue-generating activities and stronger cash generation could be important factors in improving the company’s financial health going forward.
For shareholders and market observers, the upcoming annual general meeting will provide an opportunity to gain further insight into the company’s plans and future direction.
