Faisal Spinning Mills Limited has reported a significant improvement in its financial performance for the first quarter ended September 30, 2026, returning to profitability with a net profit of Rs306.8 million compared to a net loss of Rs92.2 million recorded in the corresponding period last year.

According to the company’s unaudited financial statements, earnings per share (EPS) improved to Rs30.68 against a loss per share of Rs9.22 in the same quarter of the previous year, reflecting a notable turnaround in its financial position.

Revenue and Gross Profit Improve

The company’s net sales increased to Rs12.24 billion during the quarter, compared to Rs11.95 billion in the corresponding period last year, representing growth of approximately 2.4%.

Gross profit rose to Rs1.19 billion from Rs1.03 billion, indicating an improvement of around 15.8%. However, the cost of sales also increased to Rs11.04 billion from Rs10.92 billion, highlighting continued cost pressures in the textile business.

Lower Finance Costs Support Profitability

One of the key factors contributing to the company’s improved performance was a reduction in finance costs. Finance expenses declined to Rs315.9 million during the quarter, compared to Rs457.5 million in the corresponding period last year.

This reduction helped strengthen the company’s bottom line despite the challenging operating environment.

Profit before taxation reached Rs319.4 million, compared to a pre-tax loss of Rs93.5 million in the same period last year. After accounting for taxation of Rs12.6 million, the company reported a net profit of Rs306.8 million.

Financial Position and Assets

Faisal Spinning Mills maintained total assets of approximately Rs36.43 billion as of September 30, 2026, compared to Rs34.35 billion at June 30, 2026.

Current assets increased to Rs22.89 billion from Rs20.79 billion, while non-current assets stood at Rs13.54 billion.

The company’s cash and bank balances also improved to Rs787.8 million from Rs167.6 million at the end of the previous financial year, reflecting a stronger cash position.

Cash Flow Performance

The company generated net cash of Rs1.76 billion from operating activities during the quarter, compared to Rs3.33 billion in the corresponding period last year.

Meanwhile, net cash used in investing activities amounted to Rs188.7 million, while financing activities consumed Rs949.7 million.

Despite the year-on-year decline in operating cash generation, the company ended the quarter with cash and cash equivalents of Rs787.8 million.

Outlook

Faisal Spinning Mills’ first-quarter results reflect a substantial recovery in profitability, supported by higher gross profit, reduced finance costs and improved earnings.

The return to positive earnings is an encouraging development for the company. Going forward, maintaining sales growth, managing production costs, controlling financing expenses and improving operational efficiency will remain important factors in sustaining its financial recovery.

The company’s performance in the coming quarters will provide a clearer picture of whether this positive momentum can be maintained throughout the financial year.