Shahtaj Textile Reports Stronger Profitability and Recommends Rs11.50 Per Share Dividend

Shahtaj Textile Limited has reported a significant improvement in profitability for the financial year ended June 30, 2026, despite a decline in annual revenue. The company has also recommended a cash dividend of Rs11.50 per share, equivalent to 115%.

According to the company’s financial statements, Shahtaj Textile’s revenue from contracts with customers fell to Rs5.997 billion in FY2026 from Rs6.620 billion in FY2025. However, the company managed to improve its gross profit to Rs768.9 million, compared with Rs647.7 million a year earlier. This indicates that the company generated stronger gross profitability despite lower overall sales.

The improvement continued further down the income statement. Profit before taxation increased to Rs191.5 million from Rs111.0 million, while profit for the year reached Rs191.5 million, compared with Rs111.0 million in the previous year. Earnings per share also rose substantially to Rs19.82 from Rs11.49.

Stronger Balance Sheet

Shahtaj Textile’s financial position also showed an increase in shareholders’ equity. Total equity stood at approximately Rs2.51 billion as of June 30, 2026, compared with Rs2.37 billion at the end of June 2025. Total assets increased to Rs4.59 billion from Rs4.50 billion.

The company’s property, plant and equipment amounted to approximately Rs2.27 billion, reflecting the importance of its manufacturing asset base. Current assets stood at around Rs2.29 billion at year-end.

Operating Cash Flow Improves

Cash-flow figures also provide a positive aspect of the company’s financial performance. Shahtaj Textile generated Rs539.7 million in net cash from operating activities during FY2026, up from Rs512.2 million in FY2025. Cash generated from operations before financing-related payments reached Rs811.5 million.

At the same time, the company increased investment in property, plant and equipment. Capital expenditure amounted to approximately Rs313.2 million, compared with Rs39.9 million in the previous year. The higher investment suggests increased spending on the company’s operating asset base during the year.

Dividend Recommendation

One of the key announcements accompanying the financial results is the Board of Directors’ recommendation of a 115% cash dividend, equivalent to Rs11.50 per share. The recommendation was made at the board meeting held on September 24, 2026.

The statement of changes in equity also records a final dividend of Rs5.50 per share for the year ended June 30, 2025, while the latest board recommendation relates to the FY2026 results.

Financial Highlights

Overall, Shahtaj Textile’s FY2026 results show a mixed top-line picture but stronger profitability, improved earnings per share and higher operating cash generation. The company’s recommended Rs11.50-per-share cash dividend is another notable development for shareholders, while increased investment in property, plant and equipment points to continued spending on its operating capacity.