Colony Textile Mills Cuts Losses by 26% Despite Continued Financial Pressure in 9MFY26

Colony Textile Mills Limited reported a narrower loss for the nine months ended March 31, 2026, as improved sales and reduced operating losses helped the company strengthen its financial performance despite persistent financing costs.

According to the company’s condensed interim financial statements, net sales increased by 22.9% to Rs15.23 billion during the nine-month period, compared to Rs12.39 billion in the corresponding period last year. The higher revenue reflects improved business activity and stronger market demand.

The textile manufacturer posted a gross profit of Rs98.5 million, a notable turnaround from a gross loss of Rs291.4 million recorded in the same period of the previous year. Operating loss also narrowed significantly to Rs289.6 million from Rs737.6 million, indicating better operational efficiency and cost management.

However, substantial finance costs of Rs1.07 billion continued to weigh heavily on profitability. As a result, the company reported a net loss of Rs1.34 billion for the nine months ended March 2026, compared with a loss of Rs1.80 billion in the corresponding period last year, representing an improvement of approximately 25.5%. Loss per share improved to Rs2.69 from Rs3.61 a year earlier.

On the balance sheet side, total assets increased to Rs32.24 billion as of March 31, 2026, from Rs26.97 billion at the end of June 2025. The increase was primarily driven by a significant upward revaluation of property, plant and equipment, which lifted the revaluation surplus to Rs5.08 billion. Shareholders’ equity also rose to Rs8.82 billion from Rs5.10 billion at the start of the fiscal year.

The company generated positive operating cash flows of Rs357.5 million during the period, compared with Rs108.0 million in the same period last year. Cash and bank balances stood at Rs66.0 million at the end of March 2026.

While Colony Textile Mills remains under pressure from high borrowing costs and accumulated losses, the latest results indicate gradual operational improvement, supported by stronger sales growth, improved margins, and healthier cash generation.