Crescent Cotton Mills Reports 156% Increase in Quarterly Profit, Revenue Surges to Rs1.66 Billion

Crescent Cotton Mills Limited (CCM) has reported a significant improvement in its financial performance for the first quarter ended September 30, 2026, with its after-tax profit increasing by approximately 156% compared to the corresponding period of the previous year.

According to the company’s unaudited financial results submitted to the Pakistan Stock Exchange (PSX), Crescent Cotton Mills recorded a profit after taxation of Rs46.29 million during the quarter, compared to Rs18.06 million in the same period last year.

The company’s earnings per share (EPS) also improved considerably, reaching Rs2.04, against Rs0.80 in the corresponding quarter of the previous financial year.

Revenue increases by 63%

Crescent Cotton Mills posted revenue of Rs1.66 billion during the first quarter, representing an increase of approximately 63% from Rs1.02 billion recorded in the same period last year.

The improvement in revenue contributed to higher gross profit, which increased to Rs167.58 million compared to Rs105.61 million previously.

Despite higher administrative expenses, which rose to Rs83.95 million from Rs57.39 million, the company managed to strengthen its overall profitability.

Distribution costs declined to Rs15.36 million, while other expenses decreased to Rs3.53 million. Finance costs also edged down to Rs18.21 million from Rs18.97 million in the corresponding period.

Profit before taxation and levy increased to Rs69.38 million, compared to Rs32.04 million last year. After accounting for levy and taxation, the company reported a net profit of Rs46.29 million.

Financial position remains substantial

The company’s total assets stood at Rs8.23 billion as of September 30, 2026, compared to Rs8.31 billion at the end of June 2026.

Total equity increased to Rs6.59 billion from Rs6.55 billion, reflecting an improvement in shareholders’ equity during the quarter.

On the liabilities side, total liabilities declined to Rs1.64 billion from Rs1.76 billion at the end of the previous financial year.

However, short-term borrowings increased to Rs986.93 million from Rs943.38 million, while long-term financing also rose during the period.

Cash flow and shareholder returns

The company’s cash flow statement showed that net cash utilized in operating activities amounted to Rs109.67 million during the quarter, compared to Rs22.28 million in the corresponding period last year.

Capital expenditure on property, plant and equipment stood at Rs60.41 million, indicating continued investment in the company’s assets.

The Board of Directors did not recommend any cash dividend, bonus shares or right shares for the quarter ended September 30, 2026.

Outlook

Crescent Cotton Mills’ first-quarter results reflect a notable improvement in revenue, profitability and earnings per share. The substantial increase in net profit indicates stronger financial performance compared to the same quarter last year.

Going forward, investors will likely monitor the company’s ability to sustain revenue growth, manage operating costs and improve operating cash flows in the coming quarters.

The financial results are unaudited and relate to the first quarter ended September 30, 2026.