Shadab Textile Mills Limited has reported a significant improvement in its financial performance for the year ended June 30, 2026, with profit after taxation rising to Rs241.38 million, compared with Rs185.03 million in the previous year.

The company’s financial results and corporate actions were communicated following a meeting of its Board of Directors held on September 25, 2026 at its registered office in Lahore.

Profit and Earnings Improve

According to the financial statements, Shadab Textile Mills generated an operating profit of Rs505.49 million during FY2026, up from Rs381.85 million a year earlier. After finance costs, other charges and other income, the company recorded profit before taxation of Rs409.99 million, compared with Rs244.15 million in FY2025.

After accounting for taxation of Rs168.60 million, the company posted profit after taxation of Rs241.38 million, against Rs185.03 million in the preceding year. This represents an increase of around 30.5% in annual net profit.

The improvement was also reflected in earnings per share. Basic and diluted EPS increased to Rs13.40 from Rs11.09 in the previous financial year.

Final Cash Dividend Announced

Alongside the annual results, the Board recommended a final cash dividend of Rs1.25 per share, equivalent to 12.50%.

The company did not announce any bonus shares, right shares or other corporate entitlement in the same notice.

Shareholders’ Meeting Scheduled for October 28

Shadab Textile Mills has scheduled its Annual General Meeting (AGM) for October 28, 2026, at 11:30 a.m. The meeting will be held at the company’s registered office at A-601/A, City Towers, 6-K, Main Boulevard Gulberg-II, Lahore.

The company has also announced that its share transfer books will remain closed from October 22 to October 28, 2026, both days inclusive. Transfers received by the registrar by the close of business on October 21 will be considered for the relevant entitlement.

Stronger Equity Position

The statement of financial position shows total assets of approximately Rs3.62 billion at June 30, 2026, compared with about Rs3.22 billion a year earlier.

The company’s equity and reserves also increased during the year. The statement of changes in equity shows that shareholders’ equity stood at approximately Rs1.97 billion at June 30, 2026.

During FY2026, the company also received Rs250 million from a rights issue, while the financial statements record the issuance of 6.25 million ordinary shares at Rs10 each with a premium of Rs30 per share.

Cash Flow and Investment Activity

Shadab Textile Mills generated Rs247.81 million in net cash from operating activities during FY2026, compared with Rs601.79 million in the previous year.

The company invested in property, plant and equipment during the year, with payments for acquisition amounting to approximately Rs259.34 million. Net cash used in investing activities stood at Rs253.91 million.

Financing activities generated net cash of approximately Rs1.95 million, supported by proceeds from the rights issue, although the company also made payments toward borrowings, lease liabilities, dividends and other financing-related obligations. Cash and cash equivalents stood at Rs25.46 million at the end of the financial year.

A Year of Improved Financial Performance

Overall, FY2026 marked a stronger year for Shadab Textile Mills in terms of profitability. Higher operating profit translated into improved earnings for shareholders, while the company also continued investment in its assets and strengthened its equity position.

With the proposed Rs1.25 per-share final dividend and the upcoming AGM, shareholders will have an opportunity to consider the company’s annual financial performance and proposed distribution.