Asim Textile Mills Limited Reports Rs12 Million Annual Profit as Revenue Declines in FY2026

Asim Textile Mills Limited has announced its financial results for the year ended June 30, 2026, reporting a net profit of Rs12.02 million compared with Rs19.88 million in the previous financial year. The results highlight a challenging year for the textile company, as lower revenue and reduced gross profit affected its overall earnings.

According to the company’s financial statements submitted to the Pakistan Stock Exchange (PSX), revenue from contracts with customers declined to Rs2.04 billion in FY2026 from Rs2.18 billion in FY2025. This reflects a decrease of approximately 6.4% year-on-year.

Gross Profit and Earnings Decline

The company’s gross profit fell to Rs60.73 million during the year under review, compared with Rs90.26 million in the previous year. The decline indicates continued pressure on profitability amid lower revenue and the cost of sales.

Profit from operations decreased to Rs16.93 million from Rs33.57 million in FY2025. Meanwhile, profit before levies and income tax stood at Rs30.65 million, against Rs52.96 million in the preceding year.

After accounting for levies and income tax, Asim Textile Mills posted a net profit of Rs12.02 million, down approximately 39.5% from the previous year’s Rs19.88 million. Earnings per share also declined to Rs0.79 from Rs1.31.

Total Assets Increase

Despite the decline in earnings, the company’s financial position showed growth in total assets. Asim Textile Mills reported total assets of Rs1.295 billion as of June 30, 2026, compared with Rs1.264 billion a year earlier.

Current assets increased to Rs513.33 million from Rs498.17 million. Cash and bank balances stood at Rs178.14 million, down from Rs256.11 million in FY2025. The company also reported an increase in stock-in-trade to Rs164.24 million from Rs120.33 million.

On the liabilities side, total current liabilities rose to Rs762.72 million from Rs736.33 million. Bank borrowings remained unchanged at approximately Rs417.59 million, while contract liabilities increased to Rs49.38 million from Rs20.56 million.

Cash Flow and Investment Activities

The company’s cash flow statement showed that net cash used in operating activities amounted to Rs35.60 million during FY2026, compared with net cash generated of Rs126.07 million in the previous year.

Net cash used in investing activities reached Rs41.42 million, reflecting investment in property, plant and equipment alongside proceeds from asset disposals and returns on deposits. The company reported capital expenditure of approximately Rs69.36 million on property, plant and equipment.

As a result of operating, investing and financing activities, cash and cash equivalents declined by Rs77.96 million during the year, leaving the company with Rs178.14 million at the end of June 2026.

No Dividend Announced

In its notice to the Pakistan Stock Exchange, the company’s board of directors did not recommend a cash dividend, bonus shares, right shares or any other entitlement for shareholders for the year ended June 30, 2026.

Outlook

Asim Textile Mills’ FY2026 results reflect a year of lower sales, reduced gross profit and declining earnings. Although total assets increased, the decline in cash balances and the shift to negative operating cash flow remain important financial indicators for investors to monitor.

The company’s future performance will depend on its ability to improve sales, manage production costs, strengthen operating cash generation and maintain financial stability in a competitive textile industry.

Investors will be watching upcoming financial results for signs of improved profitability and stronger cash flows as the company moves into the next financial year.