Arctic Textile Mills Limited has reported a significant increase in profitability for the first quarter ended September 30, 2026, as higher revenue and improved gross profit strengthened the company’s financial performance.

According to the company’s unaudited financial results submitted to the Pakistan Stock Exchange (PSX), profit after taxation rose to Rs. 40.83 million in the July–September quarter, compared with Rs. 16.71 million in the corresponding period last year.

Revenue Increases Significantly

Arctic Textile Mills recorded revenue of Rs. 743.87 million during the quarter, up from Rs. 447.80 million in the same period of the previous year. This represents an increase of approximately 66.1%, reflecting a substantial improvement in the company’s reported sales.

The increase in revenue also supported gross profit, which climbed to Rs. 65.72 million from Rs. 34.55 million a year earlier. However, the company’s cost of sales also increased to Rs. 678.15 million from Rs. 413.25 million, highlighting the importance of managing production costs alongside business growth.

Operating Profitability Improves

The company’s operating performance strengthened during the quarter. Profit from operations increased to Rs. 48.26 million, compared with Rs. 20.24 million in the corresponding quarter of the previous year.

The improvement came despite higher distribution costs, administrative expenses and other expenses. Administrative expenses rose to Rs. 14.87 million from Rs. 11.02 million, while other expenses increased to Rs. 3.08 million from Rs. 2.48 million.

Arctic Textile Mills also reported other income of Rs. 2 million during the quarter, compared with no other income recorded in the same period last year.

Finance costs increased to Rs. 3.73 million from Rs. 0.11 million, but the company still achieved a substantial improvement in profit before taxation, which reached Rs. 44.53 million against Rs. 20.13 million a year earlier.

Earnings Per Share Nearly Triple

The company’s earnings per share (EPS) improved to Rs. 3.10 for the quarter, compared with Rs. 1.27 in the corresponding period last year. The increase reflects the stronger earnings performance reported during the period.

Profit after taxation reached Rs. 40.83 million, up approximately 144% year-on-year, demonstrating a marked improvement in the company’s bottom-line results.

Cash Position and Financial Developments

The company’s cash flow statement showed net cash generated from operating activities of Rs. 66.53 million during the quarter, compared with net cash used in operating activities of Rs. 78.98 million in the same period last year.

After capital expenditure of Rs. 35.65 million on property, plant and equipment, the company reported a net increase of Rs. 30.87 million in cash and cash equivalents. Cash and cash equivalents at the end of September 2026 stood at Rs. 88.63 million, compared with Rs. 4.31 million at the end of September 2025.

The balance sheet also showed total assets of approximately Rs. 1.17 billion as of September 30, 2026, while total equity stood at Rs. 555.30 million.

No Dividend Announced

Alongside the financial results, the company’s board of directors recommended no cash dividend, bonus shares or right shares for the quarter ended September 30, 2026.

The financial statements were considered by the board following the recommendation of the audit committee and were approved for disclosure.

Outlook

Arctic Textile Mills’ first-quarter results indicate a strong improvement in revenue, profitability, earnings per share and operating cash flow compared with the same period last year. The company’s ability to sustain this performance will depend on maintaining revenue growth, controlling production and operating costs, and managing the increase in finance expenses.

Investors will likely monitor the company’s upcoming financial results for further evidence that the improved performance can be maintained throughout the financial year.