Arctic Textile Mills Posts Rs76.4 Million Profit for FY2026 as Revenue Declines

Arctic Textile Mills Limited has reported a profit after taxation of Rs76.42 million for the financial year ended June 30, 2026, compared with Rs102.52 million in the previous year, according to its audited financial results. The company’s results were approved by its Board of Directors at a meeting held on September 29, 2026. 283755

Revenue declines during the year

The company recorded revenue of Rs1.90 billion during FY2026, down from Rs2.73 billion in FY2025. This represents a decline of roughly 30%, reflecting weaker overall sales during the year.

Despite the significant reduction in revenue, Arctic Textile Mills maintained a gross profit of Rs164.47 million, compared with Rs200.36 million a year earlier. The gross profit margin consequently improved, indicating that the company was able to retain a larger portion of its sales after covering the cost of goods sold. 283755

Profitability remains positive

Profit from operations stood at Rs109.39 million, compared with Rs148.73 million in FY2025. After finance costs of Rs2.23 million and taxation of Rs30.74 million, the company posted a profit after tax of Rs76.42 million.

Earnings per share also declined, falling to Rs5.80 from Rs7.78 in the previous financial year. Nevertheless, the company remained profitable despite the challenging revenue environment. 283755

Equity position strengthens

According to the statement of financial position, Arctic Textile Mills’ total equity increased to Rs514.47 million at June 30, 2026, compared with Rs428.24 million a year earlier. Total assets stood at approximately Rs965.69 million, up from Rs890.81 million.

The company reported cash and bank balances of Rs57.76 million at the end of the financial year, compared with Rs83.29 million in FY2025. Current assets amounted to around Rs278.86 million. 283755

Cash flow remains an area to watch

The cash flow statement shows that net cash generated from operating activities was only Rs0.65 million, compared with Rs145.80 million in the previous year. Meanwhile, the company invested Rs126.18 million in property, plant and equipment during the year.

To support its financing requirements, Arctic Textile Mills reported Rs100 million in proceeds from short-term borrowings. The combination of capital expenditure and weaker operating cash generation resulted in a net decrease of Rs25.53 million in cash and cash equivalents during FY2026. 283755

No cash dividend announced

The company has recommended no cash dividend, bonus shares or right shares for the year ended June 30, 2026. Its Annual General Meeting is scheduled for October 27, 2026, at the company’s registered office in Faisalabad. The share transfer books will remain closed from October 20 to October 27, 2026. 283755

Outlook

Arctic Textile Mills enters the new financial year with a mixed financial picture. While lower revenue and profit compared with FY2025 remain challenges, the company continued to generate a positive bottom line and strengthened its equity base. The improvement in gross profitability is also notable.

Going forward, investors are likely to watch whether the company can restore sales growth, improve operating cash generation and generate sufficient returns from its capital expenditure. These factors could be important in determining the company’s financial performance in the coming year.

Overall, Arctic Textile Mills remained profitable in FY2026, posting Rs76.42 million in after-tax earnings, but the decline in revenue, earnings per share and operating cash flow highlights the challenges facing the company.