Bhanero Textile Mills Delivers Sharp Profit Growth in FY2026
Bhanero Textile Mills Limited reported a significant improvement in profitability for the financial year ended June 30, 2026, with profit after taxation rising to Rs700.27 million, compared with Rs114.23 million in the previous year. The results highlight a substantial improvement in the company’s bottom-line performance during the year. 283764
According to the company’s financial statements, net sales increased to Rs33.72 billion in FY2026 from Rs32.91 billion a year earlier. Although the increase in revenue was relatively modest, gross profit improved to Rs2.97 billion, compared with Rs2.59 billion in FY2025. This indicates stronger gross profitability during the year. 283764
The company’s operating performance also benefited from a notable reduction in finance costs. Finance cost declined to approximately Rs980.93 million, compared with Rs1.16 billion in the preceding year. As a result, profit before levies and taxation increased to Rs1.19 billion, from Rs523.27 million in FY2025. 283764
After accounting for levies and taxation, Bhanero Textile Mills posted profit before taxation of Rs761.96 million, compared with Rs111.92 million last year. Profit after taxation subsequently reached Rs700.27 million, representing a major year-on-year improvement. Earnings per share also climbed sharply to Rs230.28, compared with Rs37.56 in FY2025. 283764
The company also reported positive movement in comprehensive income. Total comprehensive income for FY2026 stood at Rs708.76 million, compared with Rs96.54 million in the previous year. This included an actuarial gain related to employee retirement benefits, partly offset by the related deferred tax impact. 283764
Stronger Operating Cash Flow
Bhanero Textile Mills also showed a substantial improvement in cash generation from operations. The statement of cash flows shows net cash generated from operating activities of Rs5.55 billion, compared with only Rs414.6 million in FY2025. The improvement was supported by changes in working capital and operating profitability. 283764
The company ended the year with cash and cash equivalents of Rs907.54 million, up from Rs171.84 million at June 30, 2025. However, financing activities resulted in a net cash outflow of approximately Rs3.72 billion, while investing activities used around Rs1.09 billion during the year. 283764
Financial Position
The statement of financial position shows total assets of approximately Rs24.08 billion at June 30, 2026, compared with Rs26.93 billion a year earlier. Total equity and liabilities stood at the same amount, reflecting the company’s reported financial position at the year-end. 283764
Overall, Bhanero Textile Mills’ FY2026 results point to a strong recovery in profitability. The combination of higher gross profit, lower finance costs, stronger operating cash generation and a significant increase in earnings per share marks a considerably stronger financial year for the textile manufacturer.
In summary, while sales growth remained moderate, the sharp improvement in profitability and cash generation was the key feature of Bhanero Textile Mills’ FY2026 performance.
