Crescent Textile Mills Posts Rs52.7 Million Profit After Tax in FY2026

The Crescent Textile Mills Limited returned to profitability during the financial year ended June 30, 2026, posting a profit after taxation of Rs52.7 million, compared with a loss of Rs287.4 million recorded in the previous year.

The company’s audited financial results were approved by its Board of Directors at a meeting held on September 29, 2026. The results show a notable improvement in profitability despite relatively stable revenue during the year. 283782

Revenue remains broadly stable

Crescent Textile Mills recorded revenue of Rs19.11 billion during FY2026, slightly higher than Rs19.00 billion in FY2025. At the same time, cost of sales declined to Rs17.13 billion from Rs17.30 billion, helping the company increase its gross profit to Rs1.98 billion, compared with Rs1.70 billion a year earlier. 283782

The improvement in gross profit provided a stronger foundation for the company’s operating performance. Profit from operations rose to Rs1.09 billion, compared with Rs826.7 million in FY2025.

Lower finance costs support bottom-line recovery

One of the most significant improvements came from finance costs. Crescent Textile Mills reduced its finance cost to Rs780.1 million during FY2026 from Rs1.17 billion in the previous year. This substantial reduction helped the company move from a pre-tax loss of Rs584.5 million in FY2025 to a profit before taxation of Rs78.8 million in FY2026. 283782

After accounting for taxation, the company reported a profit after tax of Rs52.7 million, translating into earnings per share of Rs0.53, compared with a loss per share of Rs2.87 in FY2025.

Stronger comprehensive income

The company also reported a significant increase in total comprehensive income, which reached Rs2.71 billion during FY2026, compared with Rs1.34 billion in the preceding year.

Other comprehensive income stood at Rs2.65 billion. This included a Rs1.69 billion surplus on revaluation of operating fixed assets, net of deferred tax, as well as a Rs960.9 million fair-value adjustment related to investments measured through other comprehensive income. 283782

As a result, total equity increased to Rs15.44 billion at June 30, 2026, from Rs12.74 billion a year earlier. 283782

Operating cash flow turns positive

Cash generation also improved considerably. The company generated Rs2.06 billion from operations during FY2026, compared with Rs788.4 million in the previous year. After finance costs, taxes, lease-related payments and other operating cash movements, net cash generated from operating activities amounted to Rs928.1 million, reversing the Rs857.4 million operating cash outflow recorded in FY2025. 283782

The company invested Rs696.8 million in property, plant and equipment during the year, while proceeds from the sale of property, plant and equipment amounted to Rs259.6 million. Overall, investing activities resulted in a net cash outflow of Rs339.2 million. 283782

Financial position

Total assets increased to Rs28.81 billion at June 30, 2026, compared with Rs26.27 billion at the end of FY2025. Non-current assets rose to Rs18.74 billion, while current assets stood at Rs10.07 billion. 283782

The company continued to carry significant short-term borrowings, although these declined to Rs8.49 billion from Rs8.70 billion. Long-term financing also fell to Rs277.8 million from Rs569.3 million.

No dividend announced

Despite the return to profitability, the company did not recommend a cash dividend, bonus shares, right shares or any other entitlement or corporate action in connection with the FY2026 results. 283782

The Annual General Meeting is scheduled for October 27, 2026, at 11:00 a.m. in Faisalabad. The share transfer books will remain closed from October 21 to October 27, 2026, with transfers received by October 20 eligible for consideration for the AGM. 283782

Outlook

Crescent Textile Mills’ FY2026 results mark a meaningful recovery from the loss reported a year earlier. Stable revenue, improved gross profitability, lower finance costs and stronger operating cash generation collectively helped the company return to the black.

While the absence of a dividend indicates that the company is not distributing cash to shareholders at this stage, the improvement in earnings and operating cash flow provides a more encouraging picture of its financial performance going forward.