Reliance Weaving Mills Reports Sharp Improvement in FY2026 Profitability

Reliance Weaving Mills Limited has reported a significant improvement in its financial performance for the year ended June 30, 2026, with profit after taxation more than tripling compared with the previous year.

According to the company’s financial statements, Reliance Weaving Mills recorded net sales of Rs41.61 billion during FY2026, compared with Rs40.22 billion in FY2025. Gross profit increased to Rs5.48 billion from Rs4.70 billion a year earlier.

The company’s profit from operations also improved considerably, reaching Rs4.37 billion compared with Rs3.58 billion in the preceding year. After finance costs, profit before tax stood at Rs1.28 billion, substantially higher than Rs352.91 million reported for FY2025.

After taxation and levies, Reliance Weaving Mills posted profit after taxation of Rs812.63 million, compared with Rs256.99 million in FY2025. This represents an increase of more than three times year-on-year. Earnings per share consequently rose to Rs26.37 from Rs8.34.

Balance Sheet Strength

The company’s total assets increased to Rs40.44 billion as of June 30, 2026, compared with Rs39.27 billion a year earlier. Non-current assets stood at Rs20.60 billion, while current assets were approximately Rs19.84 billion.

Stock-in-trade amounted to Rs10.42 billion, while trade debts stood at Rs5.21 billion. Cash and bank balances were reported at Rs482.18 million at the end of the financial year.

Shareholders’ equity increased to approximately Rs12.07 billion, compared with Rs10.31 billion in FY2025. The company also reported a revaluation surplus on freehold land of Rs4.24 billion.

Operating Cash Flow Turns Positive

One of the notable developments in the financial statements was the improvement in operating cash flow. Reliance Weaving Mills generated Rs1.87 billion in net cash from operating activities during FY2026, compared with a net operating cash outflow of Rs706.57 million in FY2025.

The company invested approximately Rs1.42 billion in fixed capital expenditure during the year, while net cash used in investing activities amounted to Rs1.50 billion.

Financing activities resulted in a net cash outflow of approximately Rs621.77 million. After accounting for movements during the year, cash and cash equivalents stood at Rs482.18 million at June 30, 2026.

No Cash Dividend or Bonus Shares

For FY2026, the company announced no cash dividend, bonus shares or right shares, and disclosed no other entitlement or corporate action in its notice to the Pakistan Stock Exchange.

The company said its Board of Directors approved the audited financial statements at a meeting held on September 28, 2026.

Annual General Meeting Scheduled for October 28

Reliance Weaving Mills has scheduled its Annual General Meeting for Wednesday, October 28, 2026, at 3:00 pm at 2nd Floor, Trust Plaza, L.M.Q. Road, Multan.

The company also announced that its share transfer books will remain closed from October 22 to October 28, 2026, inclusive. Transfers received by the share registrar by the close of business on October 21 will be considered in time for attending and voting at the AGM.

Overall, the FY2026 financial statements show a substantial improvement in Reliance Weaving Mills’ profitability, earnings per share and operating cash generation, while sales recorded a more moderate increase during the year.