AN Textile Mills Posts Revenue Growth Amid Continued Profitability Pressure

AN Textile Mills Limited has reported its financial results for the year ended June 30, 2026, showing a modest increase in revenue but a wider net loss as higher operating and financial costs continued to weigh on profitability.

According to the company’s financial statements, revenue increased to Rs4.542 billion during FY2026 from Rs4.492 billion in the previous year. Despite the increase in sales, gross profit declined to Rs44.2 million, compared with Rs52.4 million in FY2025.

Loss Widens During FY2026

The company recorded distribution costs of Rs10.5 million, administrative expenses of Rs79.4 million, and other expenses of Rs0.5 million during the year. These costs resulted in a loss from operations of approximately Rs43.2 million, compared with a loss of Rs16.4 million in FY2025.

Finance costs remained significant at Rs50.1 million, slightly higher than Rs49.6 million a year earlier. After accounting for finance costs and levy, the company reported a loss before taxation of Rs150.1 million, compared with Rs122.1 million in FY2025.

After taxation, the loss stood at Rs115.0 million, compared with a loss of Rs103.0 million in the previous year. Loss per share also increased to Rs11.91 from Rs10.66.

Financial Position Strengthened by Revaluation

AN Textile Mills’ total assets increased to approximately Rs2.055 billion at June 30, 2026, compared with Rs1.958 billion a year earlier.

Property, plant and equipment rose to Rs1.513 billion from Rs1.247 billion, reflecting the company’s continued investment in its asset base. Current assets, however, declined to Rs537.9 million from Rs706.7 million.

The company reported total equity of approximately Rs1.050 billion, up from Rs711.0 million. The increase was supported in part by a surplus on the revaluation of property, plant and equipment, which stood at Rs558.4 million at the end of FY2026.

Accumulated loss increased to Rs347.3 million, compared with Rs255.9 million in FY2025.

Operating Cash Flow Turns Positive

One of the notable developments in the cash flow statement was the improvement in operating cash generation. Cash generated from operations reached Rs244.8 million, compared with Rs34.5 million in FY2025.

After finance costs, taxes and other operating cash movements, the company generated net cash of Rs96.6 million from operating activities, reversing the Rs121.6 million cash outflow recorded in the previous year.

At the same time, AN Textile Mills invested Rs175.6 million in property, plant and equipment during FY2026. The resulting net cash used in investing activities amounted to Rs171.9 million.

The company also raised Rs74.2 million through net short-term borrowings, contributing to financing cash flows during the year.

Dividend and AGM Details

The company announced no cash dividend, bonus shares or right shares for the year ended June 30, 2026.

AN Textile Mills said its Annual General Meeting will be held on October 27, 2026, at the company’s registered office on Sheikhupura Road, Faisalabad. The share transfer books will remain closed from October 21 to October 27, 2026, both days inclusive.

Outlook

AN Textile Mills entered FY2027 with a mixed financial picture. The company achieved modest revenue growth and generated positive operating cash flow, while continued losses, elevated finance costs and higher operating expenses remained key challenges.

The significant investment in property, plant and equipment also indicates continued spending on the company’s productive asset base. The financial performance in the coming year will therefore depend on the company’s ability to improve margins, manage costs and convert its operational capacity into stronger earnings.