Crescent Cotton Mills Limited (PSX: CCML) has announced its financial results for the third quarter and nine months ended March 31, 2026, reporting an improvement in net profitability despite lower sales during the period. The company’s board also declared no cash dividend, bonus shares, right shares, or any other corporate action.
According to the company’s unconsolidated financial statements, net revenue for the nine-month period stood at Rs4.10 billion, down from Rs4.60 billion recorded in the corresponding period last year. Gross profit also declined to Rs281.4 million from Rs326.4 million, reflecting the impact of lower sales and margin pressures.
Despite the decline in revenue, Crescent Cotton Mills managed to improve its bottom line. The company reported a profit after taxation of Rs48.38 million, compared to Rs35.68 million in the same period last year. The improvement was largely supported by the absence of losses from discontinued operations, which had negatively impacted last year’s earnings. Earnings per share (EPS) increased to Rs2.13, compared with Rs1.57 a year earlier.
For the third quarter alone, the company posted a net profit of Rs9.63 million, slightly lower than Rs9.85 million reported in the corresponding quarter of the previous year. Quarterly revenue, however, rose to Rs1.85 billion from Rs1.41 billion, indicating stronger sales momentum during the latest quarter.
On the financial position front, Crescent Cotton Mills maintained a solid balance sheet. Total equity increased to Rs6.40 billion as of March 31, 2026, while total assets stood at Rs8.05 billion. The company also reduced its current liabilities compared with the previous fiscal year-end, strengthening its financial position.
Cash flow from operating activities remained positive at Rs152.7 million, enabling the company to fund capital expenditures and improve its cash balance. Cash and cash equivalents nearly doubled to Rs33.5 million by the end of the reporting period.
While the textile sector continues to face challenges from fluctuating demand, input costs, and economic uncertainty, Crescent Cotton Mills’ improved profitability and stronger financial position demonstrate resilience. Investors will closely monitor the company’s performance in the final quarter of the fiscal year to assess whether the recent improvement in earnings can be sustained.
