Suraj Cotton Mills Limited has reported a significant improvement in profitability for the financial year ended June 30, 2026, while also announcing a cash dividend of PKR 10 per share, equivalent to 100%.

The company’s Board of Directors approved the audited financial statements at its meeting held on September 28, 2026. Alongside the financial results, the board recommended the cash dividend, with no bonus shares, right shares or other corporate actions announced.

Revenue and Profit Show Strong Improvement

According to the financial statements, Suraj Cotton Mills generated revenue of approximately Rs28.65 billion during FY2026, compared with Rs27.41 billion in the previous year. Gross profit increased to Rs2.81 billion, from Rs2.29 billion in FY2025.

Profit from operations rose to Rs2.54 billion, compared with Rs2.20 billion a year earlier. Finance costs also declined to Rs126.19 million from Rs189.89 million, supporting the improvement in overall profitability.

Profit before taxation reached Rs2.39 billion, compared with Rs1.88 billion in FY2025. After taxation of Rs591.58 million, the company posted profit after taxation of Rs1.80 billion, up from Rs1.12 billion in the preceding year.

The company’s earnings per share increased to Rs36.90 from Rs22.92, according to the audited results.

Stronger Equity Position

Suraj Cotton Mills also strengthened its equity position during the year. Total equity stood at approximately Rs15.58 billion as of June 30, 2026, compared with Rs13.55 billion a year earlier.

Reserves increased to Rs15.09 billion from Rs13.06 billion. Meanwhile, total liabilities declined to Rs9.92 billion from Rs10.75 billion. Long-term secured financing fell from Rs2.47 billion to Rs1.87 billion, while short-term borrowings dropped substantially from Rs1.16 billion to Rs145.44 million.

Changes in Asset Mix

The company’s total assets increased to Rs25.51 billion at June 30, 2026, compared with Rs24.29 billion in 2025.

Among notable changes, stock-in-trade declined to Rs5.17 billion from Rs7.39 billion, while short-term investments increased sharply to Rs5.07 billion, compared with Rs1.24 billion previously. Long-term investments also increased to Rs2.09 billion from Rs1.36 billion.

Operating Cash Flow Improves Significantly

Cash generation from operations showed a particularly strong improvement. Suraj Cotton Mills generated Rs6.72 billion from operations, compared with only Rs551 million in FY2025.

After finance costs, workers’ profit participation fund payments, taxes and other adjustments, net cash generated from operating activities stood at Rs5.91 billion, compared with net cash used of Rs324 million in the previous year.

The company used cash for investments and financing activities during the year. Net cash used in investing activities amounted to Rs3.97 billion, while financing activities consumed Rs1.99 billion, including repayment of long-term financing and dividend payments. Cash and cash equivalents stood at Rs109.17 million at the end of FY2026.

Dividend and Annual General Meeting

For shareholders, the company has recommended a cash dividend of Rs10 per share for FY2026. The company stated that shareholders whose names appear in the register of members on October 14, 2026 will be entitled to the dividend. The share transfer books will remain closed from October 15 to October 22, 2026.

Suraj Cotton Mills’ Annual General Meeting is scheduled for October 22, 2026, at 10:00 a.m. at the company’s corporate head office in Lahore.

Overall Financial Picture

The FY2026 results show improvement across several key financial indicators. Revenue increased, gross and operating profits strengthened, profit after tax rose substantially, and operating cash generation improved markedly. At the same time, the company reduced both long-term financing and short-term borrowings.

The audited statements also show total comprehensive income of Rs2.28 billion, including Rs479.46 million in other comprehensive income arising from the fair-value adjustment of investments.

With higher earnings, stronger operating cash flow and a proposed 100% cash dividend, Suraj Cotton Mills has reported a notable financial improvement for the year ended June 30, 2026.