Reliance Weaving Mills Limited has posted a significant improvement in profitability for the first quarter ended September 30, 2026, reporting a substantial increase in sales and earnings compared with the corresponding period last year.
According to the company’s unaudited financial results submitted to the Pakistan Stock Exchange (PSX), Reliance Weaving Mills recorded net sales of Rs12.59 billion during the quarter, compared with Rs10.73 billion in the same period of the previous year. This represents an increase of approximately 17.3%, reflecting improved revenue performance.
The company’s gross profit more than doubled to Rs1.72 billion, compared with Rs879.33 million in the corresponding quarter of 2025. This improvement was supported by higher sales and a stronger gross profit margin.
Profit from operations also registered substantial growth, reaching Rs1.35 billion against Rs640.60 million in the previous year’s corresponding period. The increase highlights an improvement in the company’s operating performance.
Despite finance costs of Rs638.09 million, slightly lower than Rs643.51 million recorded last year, the company achieved a profit before taxation of Rs556.48 million. This compares with a profit before taxation of just Rs53.16 million in the same quarter of 2025.
After taxation and levies, Reliance Weaving Mills reported a net profit of Rs476.36 million, compared with Rs44.53 million in the corresponding period last year. Consequently, earnings per share increased significantly to Rs15.46 from Rs1.45.
The company’s financial position also showed changes during the quarter. Total assets stood at Rs45.20 billion as of September 30, 2026, compared with Rs40.44 billion at June 30, 2026. Total liabilities increased to Rs32.63 billion from Rs28.36 billion, while shareholders’ equity and reserves reached Rs12.56 billion.
However, the company’s cash flow statement reflected increased pressure on operating cash flows. Net cash used in operating activities amounted to Rs3.23 billion, compared with Rs2.28 billion in the corresponding period last year. The increase in working capital requirements, particularly stock-in-trade and trade debts, contributed to the cash outflow.
Meanwhile, net cash generated from financing activities stood at Rs3.92 billion, helping the company maintain positive cash and cash equivalents. Cash and bank balances increased to Rs627.14 million at the end of September 2026 from Rs482.18 million at the beginning of the period.
The Board of Directors approved the company’s first-quarter financial results at a meeting held on October 30, 2026. The board did not recommend any cash dividend, bonus shares, right shares or other corporate action for the period.
Overall, Reliance Weaving Mills delivered a strong improvement in its first-quarter financial performance, with substantial growth in revenue, operating profit and earnings per share. Going forward, maintaining profitability, managing financing costs and improving operating cash flows will remain important factors for the company’s financial performance in the coming quarters.
