Al-Abid Silk Mills Faces Another Challenging Year as Loss Widens to Rs141.87 Million

Al-Abid Silk Mills Limited has reported a challenging financial performance for the year ended June 30, 2026, with the company recording a net loss of Rs141.87 million, compared with a loss of Rs138.94 million in the previous financial year.

The financial results were approved by the company’s Board of Directors at a meeting held on October 1, 2026. The results highlight continued pressure on the company’s operations, despite improvements in some areas of its financial performance. 284161

Revenue Remains Limited

According to the financial statements, Al-Abid Silk Mills recorded sales and services of Rs939,316 during FY2026. However, the company’s cost of sales stood at approximately Rs137.96 million, resulting in a gross loss of around Rs137.02 million.

The significant gap between revenue and operating costs remained one of the major challenges for the company during the year. 284161

Administrative Expenses Decline

One positive development was a reduction in administrative expenses. These expenses fell to approximately Rs48.78 million in FY2026 from Rs59.33 million a year earlier.

The company also reported other income of Rs49.06 million, compared with Rs35.18 million in FY2025. This improvement in other income helped partially offset the pressure from the company’s core operations. 284161

Despite these improvements, Al-Abid Silk Mills recorded a loss from operations of Rs136.74 million, compared with Rs138.64 million in the previous year.

Finance Costs Add to Pressure

The company incurred a finance cost of approximately Rs4.54 million during FY2026, whereas no finance cost was reported in the comparable period of FY2025.

After accounting for finance costs and a levy of around Rs588,797, the company reported a loss before taxation of Rs141.87 million. The same amount was reported as loss after taxation because no taxation charge was recorded for the year. 284161

The resulting loss per share stood at Rs10.58, compared with a loss per share of Rs10.36 in FY2025.

Comprehensive Loss Reaches Rs141.85 Million

The company’s statement of comprehensive income showed a small positive amount of Rs18,800 from the remeasurement of defined benefit liability.

However, this was not enough to offset the overall loss. As a result, Al-Abid Silk Mills recorded a total comprehensive loss of Rs141.85 million for FY2026, compared with a comprehensive profit of Rs454.02 million in FY2025. The previous year’s figure benefited substantially from a revaluation of property, plant and equipment. 284161

Cash Flow Shows Improvement in Operations

Despite the reported accounting loss, the company’s cash-flow position showed some improvement.

The company generated Rs16.55 million in net cash from operating activities during FY2026, compared with a net cash outflow of Rs53.13 million in FY2025.

Cash generated from investing activities stood at Rs840,000, while the company used Rs30.5 million in financing activities, mainly through repayment of long-term finance. 284161

Cash and cash equivalents declined from Rs50.47 million at the beginning of the year to Rs37.36 million at June 30, 2026.

No Cash Dividend Announced

The company’s financial results also indicate that no final cash dividend was recommended for the year ended June 30, 2026, with no interim dividend having been paid during the year. 284161

Outlook

Al-Abid Silk Mills’ FY2026 results reflect a difficult operating environment, with the company continuing to face substantial losses. The reduction in administrative expenses, improvement in other income and turnaround in operating cash flow provide some positive signs, but the company will need a significant improvement in its core revenue-generating operations to return to profitability.

The financial statements show that the company remains under considerable financial pressure, with the FY2026 loss slightly higher than the previous year’s loss and earnings per share remaining negative.

Overall, the FY2026 results underline the need for stronger operating performance and improved revenue generation as Al-Abid Silk Mills looks to strengthen its financial position in the coming year.