Shams Textile Mills Limited reported a significant improvement in its financial performance for the nine months ended March 31, 2026, substantially reducing its losses despite facing increased finance costs and lower sales during the period.
The company posted a net loss after taxation of Rs13.07 million, a marked improvement from the Rs89.83 million loss recorded in the corresponding period last year. Consequently, the loss per share narrowed to Rs1.51, compared with Rs10.40 in the same period of FY2025.
Shams Textile’s net sales declined to Rs3.07 billion from Rs3.74 billion a year earlier, reflecting softer market conditions. However, the company managed to improve operational efficiency, with gross profit doubling to Rs250.92 million from Rs125.04 million in the previous year’s corresponding period. Gross margins strengthened as the cost of sales declined at a faster pace than revenue.
Operating profitability also improved significantly. Profit from operations surged to Rs148.57 million, compared with Rs36.62 million in the same period last year, supported by stronger gross margins and other income of Rs27.29 million.
Despite this operational improvement, the company’s financial performance continued to be weighed down by rising borrowing costs. Finance costs increased to Rs123.23 million, up from Rs79.65 million in the corresponding period, reflecting the impact of higher interest rates and increased financing requirements.
For the third quarter alone, Shams Textile returned to profitability, reporting a net profit of Rs41.93 million, compared with a loss of Rs31.18 million in the same quarter last year. Quarterly earnings per share stood at Rs4.85, reversing the previous year’s loss per share of Rs3.61.
On the financial position side, the company’s total assets increased to Rs3.01 billion as of March 31, 2026, from Rs2.61 billion at the end of June 2025. Trade receivables rose sharply during the period, while inventories declined, indicating stronger sales collections in progress and inventory management adjustments. Cash and bank balances also improved to Rs44.02 million from Rs28.46 million.
Meanwhile, total equity stood at Rs763.53 million, slightly lower than Rs779.86 million at the beginning of the financial year, mainly due to the remaining accumulated losses and the decline in fair value reserves.
The results indicate that while Shams Textile continues to face challenges from elevated financing costs and lower revenue, its improved operating margins and return to quarterly profitability suggest gradual progress toward financial recovery.
