Karachi: Al-Abid Silk Mills Limited has reported a net loss of Rs105.23 million for the nine months ended March 31, 2026, reflecting the continued challenges facing Pakistan’s textile sector amid rising production costs and a difficult economic environment. The company’s loss was lower than the Rs115.07 million recorded during the corresponding period last year, indicating a modest improvement in its financial performance.
According to the company’s condensed interim financial statements, Al-Abid Silk Mills generated sales and manufacturing revenue of Rs103.14 million during the nine-month period. However, the cost of sales matched total revenue, resulting in a gross loss of Rs103.14 million. Administrative expenses further impacted profitability, although the company benefited from other income of Rs33.64 million, which helped partially offset operating losses.
The company reported an operating loss of Rs104.83 million, compared with an operating loss of Rs101.55 million in the same period last year. Finance costs remained relatively stable at Rs13.30 million, while the loss before taxation stood at Rs105.23 million. Consequently, loss per share (EPS) improved slightly to Rs7.85, compared with Rs8.58 in the corresponding period of FY2025.
For the quarter ended March 31, 2026, Al-Abid Silk Mills recorded a net loss of Rs29.46 million, compared with Rs36.06 million in the same quarter of the previous year, reflecting a year-on-year improvement in quarterly performance.
In its directors’ report, the company highlighted that the global business environment remains uncertain due to geopolitical tensions, particularly developments involving the United States, Iran, and the broader Middle East. These factors have contributed to higher international oil prices, increased freight charges, and elevated shipping costs, placing additional pressure on manufacturing industries. The management also pointed to persistent inflation and high input costs within Pakistan as significant challenges affecting the country’s industrial sector.
Despite the difficult operating conditions, the company expressed optimism regarding future prospects. Management stated that preparations are underway for the commencement of production on its coating and flocking line, with initial product samples already approved by customers. Negotiations for commercial-scale production are also in progress, which the company believes could support future operational recovery and revenue generation.
The management thanked shareholders for their continued confidence and support, reaffirming its commitment to navigating current market challenges while pursuing opportunities for business improvement and long-term sustainability.
