Khalid Siraj Textile Mills Limited Returns to Profitability in FY2026
Khalid Siraj Textile Mills Limited has reported a profit after taxation of Rs19.57 million for the financial year ended June 30, 2026, marking a significant improvement compared with the net loss recorded in the previous financial year. The company announced its annual financial results following a board meeting held on October 3, 2026.
According to the financial statements submitted to the Pakistan Stock Exchange (PSX), the textile company recorded a loss after taxation of Rs19.32 million in FY2025. The latest results reflect an improvement of approximately Rs38.89 million in its reported bottom line.
Financial Performance Shows Improvement
The company’s financial results indicate a turnaround during the year under review. Khalid Siraj Textile Mills reported a profit before taxation of Rs11.82 million for FY2026, compared with a pre-tax loss of Rs24.59 million in the preceding year.
Other operating income stood at Rs45.15 million during the year, while administrative and general expenses amounted to Rs2.85 million. Other operating expenses reached Rs30.36 million, and finance costs were recorded at approximately Rs112,866.
The reported earnings per share (EPS) improved to Rs1.83, compared with a loss per share of Rs1.81 in FY2025.
The improvement in profitability was supported by the recognition of Rs45.15 million in other operating income. The company’s cash flow statement identifies this amount as liabilities written back, indicating that the reported profit was influenced by this accounting item rather than solely by recurring operating performance.
Asset Base Expands Following Revaluation
Khalid Siraj Textile Mills also reported a substantial increase in its asset base during FY2026. Total assets rose to approximately Rs464.16 million as of June 30, 2026, compared with Rs303.06 million a year earlier.
Property, plant and equipment increased to Rs454.17 million from Rs293.12 million in the previous financial year. The company’s statement of comprehensive income reported a revaluation surplus on land and buildings, as well as plant and machinery, contributing to the increase in its reported equity.
The company recorded total comprehensive income of Rs154.85 million for FY2026, compared with a comprehensive loss of Rs19.32 million in FY2025. This figure includes the impact of revaluation-related gains and associated deferred taxation, in addition to the profit reported for the year.
Consequently, the company’s equity position improved from a negative balance of approximately Rs77.24 million at the end of FY2025 to a positive balance of Rs77.60 million at June 30, 2026.
Cash Flow and Liabilities Remain Important Considerations
Despite the improvement in reported profitability, the company’s operating cash flow remained relatively modest. Net cash generated from operating activities amounted to Rs49,431 during FY2026, compared with a net operating cash outflow of approximately Rs3.87 million in the previous year.
Cash and bank balances increased to Rs65,894 from Rs16,463. However, this level of cash remains limited relative to the company’s overall asset base and reported liabilities.
Long-term financing stood at Rs153.90 million, while short-term borrowings were recorded at Rs68.18 million. Deferred liabilities increased to Rs87.30 million from Rs39.79 million, while trade and other payables declined to Rs36.08 million from Rs77.34 million.
These figures highlight the importance of cash generation, liability management and sustained operating performance as the company moves forward.
No Dividend Announced
The board of directors did not recommend a cash dividend, bonus shares or right shares for the financial year ended June 30, 2026. The company also reported no other corporate action or price-sensitive information in its announcement.
The absence of a dividend means shareholders will not receive a cash distribution for FY2026 based on this announcement.
Annual General Meeting Scheduled for October 28
Khalid Siraj Textile Mills Limited has scheduled its Annual General Meeting (AGM) for Wednesday, October 28, 2026, at 10:00 a.m. The meeting will take place at the company’s registered office at 135-Upper Mall, Lahore.
The company’s share transfer books will remain closed from October 21 to October 28, 2026, both days inclusive. Transfers received in proper order by the company’s share registrar, Corplink (Pvt.) Limited, by the close of business on October 20, 2026, will be considered timely for the purposes specified in the announcement.
The company also stated that its annual report would be transmitted through the Pakistan Unified Corporate Actions and Reporting System (PUCARS) at least 21 days before the AGM.
Outlook
Khalid Siraj Textile Mills’ FY2026 results show a return to reported profitability and a stronger equity position following the revaluation of its assets. However, the contribution of liabilities written back to earnings and the limited operating cash flow suggest that investors should assess the quality and sustainability of the company’s financial recovery.
Future performance will depend on the company’s ability to strengthen its underlying operations, improve cash generation and manage its financing obligations. Investors may also monitor subsequent financial disclosures for evidence that the improvement in profitability can be sustained.
