Kohat Textile Mills Limited delivered a modest improvement in profitability during the financial year ended June 30, 2026, with higher sales and operating profit helping the company achieve growth in profit after taxation.
According to the company’s financial statements, net sales increased to Rs8.63 billion in FY2026 from Rs8.25 billion in FY2025, representing growth of around 4.6%. Gross profit also improved to Rs1.39 billion, compared with Rs1.20 billion a year earlier. 284035
Profitability improves
Kohat Textile Mills recorded profit from operations of Rs1.00 billion, up from Rs926.90 million in FY2025. Finance costs, however, remained substantial at Rs471.27 million, compared with Rs450.93 million in the previous year. Despite the higher financial burden, profit before taxation and minimum tax levies rose to Rs530.69 million from Rs475.97 million. 284035
After accounting for minimum tax levies and taxation, the company posted profit after taxation of Rs291.95 million, compared with Rs280.77 million in FY2025. This translates into an increase of approximately 4%. Earnings per share stood at Rs14.04, compared with Rs13.50 in the previous year. 284035
The improvement in earnings was achieved despite a decline in other income, which fell to Rs12.23 million from Rs57.47 million. Distribution costs and administrative expenses also increased during the year. 284035
Stronger shareholders’ equity
The company’s financial position also strengthened during FY2026. Shareholders’ equity increased to Rs4.88 billion from Rs4.61 billion, supported primarily by growth in unappropriated profit. Revenue reserves rose from Rs1.41 billion to Rs1.71 billion. 284035
Total assets increased to Rs10.68 billion, compared with Rs10.10 billion at June 30, 2025. Property, plant and equipment stood at Rs6.31 billion, while current assets increased to Rs4.34 billion from Rs3.84 billion. Trade debts rose significantly to Rs2.65 billion from Rs2.04 billion, while stock-in-trade declined to Rs1.38 billion from Rs1.57 billion. 284035
Operating cash flow strengthens
A notable improvement was recorded in cash generation. Net cash generated from operating activities increased to Rs577.44 million, compared with Rs325.99 million in FY2025. The company generated Rs738.10 million from operating activities before taxes and levies, while taxes and levies paid amounted to Rs161.03 million. 284035
At the same time, the company continued to invest in its fixed assets. Additions to property, plant and equipment amounted to Rs272.18 million, resulting in net cash used in investing activities of Rs259.29 million. 284035
Financing activities resulted in a net cash outflow of Rs303.12 million, compared with a net inflow of Rs571.68 million in FY2025. The company ended the year with cash and cash equivalents of Rs25.19 million, up from Rs10.16 million a year earlier. 284035
Outlook
Overall, Kohat Textile Mills entered FY2027 with improved sales, operating profitability, shareholders’ equity and operating cash generation. The company’s FY2026 results indicate that it maintained profitability despite higher finance costs and a more challenging expense environment.
The increase in earnings per share from Rs13.50 to Rs14.04 and the rise in shareholders’ equity provide positive indicators for the company. However, the substantial finance cost and higher trade receivables remain important areas to watch as the company moves into the new financial year.
In summary, Kohat Textile Mills closed FY2026 on a stronger footing, with sales rising to Rs8.63 billion and profit after tax reaching Rs291.95 million, while operating cash flow showed a particularly strong improvement. 284035
