Masood Textile Mills Posts Higher Profit as Financial Costs Decline

Masood Textile Mills Limited has reported a significant improvement in profitability for the financial year ended June 30, 2026, despite a decline in overall revenue. According to the company’s financial results, profit after taxation increased sharply to Rs809.1 million, compared with Rs131.3 million in the previous year.

The company recorded revenue of Rs49.84 billion during FY2026, down from Rs59.20 billion in FY2025. Cost of sales also declined to Rs41.57 billion from Rs50.18 billion, resulting in a gross profit of Rs8.27 billion, compared with Rs9.02 billion a year earlier.

Despite the lower gross profit, several expense categories improved during the year. Distribution costs fell to Rs2.87 billion from Rs3.47 billion, while administrative expenses were reduced to approximately Rs1.20 billion from Rs1.40 billion.

A notable improvement came in finance costs, which declined to Rs2.99 billion from Rs3.86 billion in FY2025. As a result, profit before levy and taxation increased to Rs1.31 billion, compared with Rs1.02 billion in the preceding year. Profit before taxation reached Rs695.6 million, compared with Rs393.3 million in FY2025.

The bottom-line improvement was reflected in earnings per share. Basic earnings per share rose to Rs11.46, compared with Rs1.20 in the previous year, while diluted earnings per share increased to Rs10.86 from Rs1.11.

Stronger Cash Generation

Masood Textile Mills also showed an improvement in operating cash generation. Cash generated from operations reached Rs5.71 billion, compared with Rs4.38 billion in FY2025. After finance costs, taxes and other operating cash movements, net cash generated from operating activities stood at Rs824.8 million, reversing the Rs1.45 billion net cash outflow recorded in the previous year.

The company invested Rs825.3 million in property, plant and equipment during the year. Investing activities consequently resulted in a net cash outflow of approximately Rs727.7 million.

Financing activities recorded a net cash outflow of Rs41.6 million, compared with a net inflow of Rs1.50 billion in FY2025. Nevertheless, cash and cash equivalents at year-end increased to Rs722.5 million, from Rs667.3 million a year earlier.

Asset Base Expands

The company’s total assets increased to approximately Rs61.73 billion as of June 30, 2026, from Rs54.31 billion at the end of FY2025. Property, plant and equipment stood at Rs22.27 billion, compared with Rs15.74 billion previously.

Total equity also strengthened to approximately Rs23.40 billion, compared with Rs17.13 billion a year earlier. The increase included changes in revaluation surplus and retained earnings.

Cash Dividend Announced

Alongside the financial results, the board recommended a final cash dividend of Rs1.00 per share, equivalent to 10%, for the year ended June 30, 2026. No bonus shares or right shares were recommended.

The company has scheduled its Annual General Meeting for October 27, 2026, at its registered office in Faisalabad. The share transfer books will remain closed from October 20 to October 27, 2026, according to the announcement.

Overall, Masood Textile Mills entered FY2026 with lower sales but achieved a substantial improvement in net profitability, supported by lower finance costs, reduced operating expenses and stronger operating cash generation. The results highlight a year in which cost and financial management played an important role in the company’s improved bottom-line performance.