Arctic Textile Mills Reports 144% Surge in Quarterly Profit as Revenue Rises 66%
Arctic Textile Mills Limited has reported a strong financial performance for the first quarter of FY2027, recording significant growth in revenue, gross profit and net earnings for the three months ended September 30, 2026.
According to the company’s unaudited financial results, revenue increased by 66.1% to Rs. 743.87 million, compared with Rs. 447.80 million in the corresponding period last year. The growth reflects higher sales volumes and additional production capacity following the expansion of the company’s operations.
Gross profit climbed 90.2% to Rs. 65.72 million, up from Rs. 34.55 million in the same quarter of the previous financial year. The improvement in gross profit also strengthened the company’s gross margin to 8.83%, compared with 7.71% previously.
Operating performance also improved considerably. Operating profit increased by 138.4% to Rs. 48.26 million against Rs. 20.24 million in the corresponding quarter last year. The operating margin improved to 6.49% from 4.52%, reflecting better operational efficiency and increased production volumes.
The company’s profit before taxation rose 121.2% to Rs. 44.53 million, compared with Rs. 20.13 million in the same period last year. After accounting for taxation of Rs. 3.70 million, Arctic Textile Mills posted a net profit of Rs. 40.83 million, representing an impressive 144.4% increase from Rs. 16.71 million recorded a year earlier.
Earnings per share (EPS) also improved significantly to Rs. 3.10, compared with Rs. 1.27 in the corresponding quarter of FY2026.
Production Expansion Supports Growth
The company attributed its improved performance partly to additional leased production capacity that became available on August 1, 2026. This arrangement provided two months of additional production availability during the reporting quarter without requiring further investment in the underlying facility.
Arctic Textile Mills also continued developing its production infrastructure. During the quarter, a 946 KW solar power installation became operational, supporting the company’s strategy to reduce energy costs and improve operational efficiency.
The company operates a diversified textile portfolio covering cotton, CVC, PC, PV and recycled-polyester yarns, supported by ring and open-end spinning facilities.
Improved Cash Flow and Financial Position
The company’s cash flow position also showed improvement. Net cash generated from operating activities reached Rs. 66.53 million, compared with a net cash outflow of Rs. 78.98 million in the corresponding period last year.
Cash and bank balances increased to Rs. 88.63 million as of September 30, 2026, compared with Rs. 57.76 million at June 30, 2026.
Total assets stood at approximately Rs. 1.17 billion, while shareholders’ equity reached Rs. 555.30 million at the end of the reporting period.
Outlook Remains Focused on Production and Market Expansion
Looking ahead, Arctic Textile Mills expects additional production capacity and solar-supported energy efficiency to support its operations in the coming quarters. The company also plans to strengthen its sales strategy by focusing on existing customers, developing new domestic and export markets, and improving product quality and delivery performance.
Management aims to expand its customer base, enhance product specifications and maintain cost discipline while managing inventory and receivables.
The company noted that its second-quarter performance will benefit from additional production capacity and the expansion of its operations. However, it cautioned that first-quarter results should not be treated as a full-year forecast.
Overall, Arctic Textile Mills’ first-quarter results reflect substantial improvement in profitability, stronger revenue generation and better cash flow performance, supported by increased production capacity and ongoing operational development.
