Ellcot Spinning Mills Limited (PSX: ELCS) reported a strong improvement in profitability for the third quarter ended March 31, 2026, despite ongoing challenges facing Pakistan’s textile sector. The company posted a profit after tax of Rs. 26.27 million, marking a significant increase of 194% compared to Rs. 8.94 million recorded during the same period last year. Earnings per share (EPS) rose to Rs. 2.40 from Rs. 0.82 a year earlier.
According to the company’s third-quarter report, sales revenue increased by 3.46% year-on-year to Rs. 4.10 billion, compared with Rs. 3.96 billion in the corresponding quarter of FY25. Management attributed the growth primarily to higher sales volumes. The company also benefited from lower raw material, stores, and spares consumption costs, which helped reduce the cost of sales ratio to 93.34% from 94.13% last year. Consequently, gross profit margin improved to 6.66% from 5.87%.
While operating expenses increased to 2.77% of sales from 2.29% in the previous year, Ellcot maintained a healthy liquidity position and continued servicing its liabilities on time. Finance costs declined slightly to 1.81% of sales, reflecting disciplined cash management and scheduled repayments of long-term debt.
For the nine months ended March 31, 2026, the company reported revenue of Rs. 11.99 billion and profit after tax of Rs. 76.57 million. Basic earnings per share for the period stood at Rs. 6.99.
Looking ahead, management expects the final quarter of the financial year to remain profitable, supported by improving yarn prices amid rising global cotton prices. The company is also expanding its renewable energy footprint through ongoing solar projects, which will increase installed solar generation capacity to 6.5 MW from the current 4.9 MW, helping mitigate rising energy costs and improve operational efficiency.
The company noted that continued government support through competitive energy pricing, tax reforms, and measures to reduce financing costs would further strengthen the competitiveness of Pakistan’s textile industry in international markets.
