Din Textile Mills Reports Rs155.82 Million Profit in First Quarter as Gross Profit Improves

Din Textile Mills Limited has reported a return to profitability for the first quarter ended September 30, 2026, marking an improvement compared with the loss recorded in the same period last year. The company’s financial results indicate stronger gross profit and operating performance, while finance costs remained a significant expense.

According to the company’s unaudited financial statements approved by its Board of Directors on October 22, 2026, Din Textile Mills posted a net profit of Rs155.82 million for the quarter, compared with a loss of Rs147.27 million in the corresponding period of the previous year.

Sales and Gross Profit Improve

The company’s sales increased to Rs9.12 billion during the quarter, up from Rs9.07 billion in the same period last year. Although revenue growth was modest, the company achieved a notable improvement in gross profitability.

Gross profit rose to Rs1.08 billion from Rs854.16 million a year earlier. The improvement reflects a reduction in the cost of sales, which declined to Rs8.04 billion from Rs8.22 billion in the corresponding quarter last year.

This improvement in the relationship between sales and production costs helped strengthen the company’s overall financial performance.

Operating Profit Records Strong Growth

Din Textile Mills’ operating profit increased to Rs782.53 million for the quarter, compared with Rs546.28 million in the same period last year.

Distribution costs declined to Rs172.06 million from Rs211.65 million, while administrative expenses increased to Rs136.94 million from Rs119.14 million. Other operating expenses also rose to Rs36.97 million from Rs16.23 million.

Despite the increase in certain expenses, the improvement in gross profit supported higher operating earnings.

Finance Costs Remain a Key Challenge

Finance costs stood at Rs508.49 million during the quarter, down from Rs587.41 million in the corresponding period last year. Although the reduction provided some relief, borrowing-related expenses continued to absorb a substantial portion of operating profit.

Profit before levies and taxation reached Rs274.05 million, compared with a loss of Rs41.14 million in the same quarter last year. After accounting for levies and taxation, the company reported a net profit of Rs155.82 million.

Earnings per share also improved, reaching Rs2.97 against a loss per share of Rs2.81 in the corresponding quarter last year.

Financial Position and Cash Flows

As of September 30, 2026, Din Textile Mills reported total assets of approximately Rs34.67 billion, compared with Rs34.59 billion as of June 30, 2026. The company’s total equity and reserves increased to Rs10.94 billion from Rs10.78 billion over the same period.

The cash flow statement showed net cash generated from operating activities of Rs572.65 million, compared with Rs924.91 million in the same quarter last year. After investing activities, net cash generated stood at Rs650.09 million.

However, financing activities resulted in a net cash outflow of Rs648.92 million, primarily reflecting repayments and other financing-related movements. Cash and cash equivalents at the end of the quarter stood at Rs430.09 million, compared with Rs537.05 million a year earlier.

No Dividend or Bonus Shares Announced

The company’s Board of Directors did not recommend a cash dividend, bonus shares, or right shares for the quarter. No other entitlement or corporate action was announced alongside the financial results.

Outlook

Din Textile Mills’ first-quarter results show a clear improvement in profitability, supported by higher gross profit, stronger operating earnings, and lower finance costs compared with the previous year. The return to a positive bottom line is an encouraging development for the company.

Going forward, maintaining cost efficiencies, managing financing expenses, and generating sustainable operating cash flows will remain important factors in strengthening financial performance.

Investors will likely monitor the company’s upcoming quarterly results to assess whether the improvement in profitability can be sustained throughout the remainder of the financial year.