Ashfaq Textile Mills Reports Rs16.9 Million Loss for FY2026 Despite Higher Sales
Ashfaq Textile Mills Limited has reported a challenging financial performance for the year ended June 30, 2026, posting a net loss of Rs16.9 million compared with a profit of Rs6.0 million in the previous year.
According to the company’s financial results submitted to the Pakistan Stock Exchange, sales increased modestly to Rs459.4 million during the year from Rs454.2 million in 2025. However, the rise in sales was accompanied by a significant increase in the cost of sales, which reached Rs439.6 million compared with Rs411.6 million a year earlier. As a result, gross profit declined sharply to Rs19.9 million from Rs42.6 million.
The pressure on profitability continued below the gross-profit level. Administrative expenses stood at Rs36.5 million, while selling costs amounted to Rs1.7 million. After accounting for other operating expenses, finance costs and other income, the company recorded a loss before taxation of Rs21.8 million, compared with a pre-tax profit of Rs4.4 million in the preceding year.
The company reported a net loss of Rs16.9 million, translating into a basic and diluted loss per share of Rs0.36, compared with earnings per share of Rs0.13 in 2025.
Despite the annual loss, Ashfaq Textile Mills maintained a sizeable asset base. Property, plant and equipment stood at Rs964.9 million at June 30, 2026, while total current assets amounted to Rs273.3 million. Cash and bank balances increased considerably to Rs46.1 million from Rs21.7 million a year earlier.
The company also generated positive operating cash flow during the year. Net cash generated from operating activities rose to Rs29.8 million from Rs24.8 million in 2025. Meanwhile, investment activities used Rs5.4 million, including spending on property, plant and equipment and an advance for the purchase of a vehicle.
The board did not recommend a cash dividend, bonus issue or right shares for the year. The company has scheduled its Annual General Meeting for October 27, 2026, at its registered office in Faisalabad. Its share transfer books will remain closed from October 21 through October 27.
Overall, Ashfaq Textile Mills entered the new financial year with higher sales and stronger cash balances, but its profitability was significantly affected by the increase in production costs and the resulting compression in gross margins. The financial results highlight the importance of cost management and margin recovery for the company’s future performance.
