Din Textile Mills Posts Rs103.55 Million Profit in FY2026 After Previous Year’s Loss

Din Textile Mills Limited has reported a return to profitability for the financial year ended June 30, 2026, marking a significant improvement compared with the loss recorded in the previous financial year.

According to the company’s financial statements, Din Textile Mills posted net sales of Rs33.09 billion during FY2026, compared with Rs40.12 billion in FY2025. Despite the decline in sales, the company reported a gross profit of Rs4.16 billion, up from approximately Rs3.74 billion a year earlier.

Return to profitability

The company’s operating performance also improved during the year. Operating profit increased to approximately Rs3.17 billion, compared with Rs2.81 billion in FY2025. A major improvement was also recorded in finance costs, which declined to Rs2.11 billion from Rs3.04 billion in the previous year.

As a result, Din Textile Mills recorded profit before taxation of Rs618.96 million, compared with a loss before taxation of Rs706.45 million in FY2025. After taxation of approximately Rs515.41 million, the company reported profit after tax of Rs103.55 million, against a loss of Rs706.50 million in the preceding year.

Basic and diluted earnings per share stood at Rs1.97, compared with a loss per share of Rs13.47 in FY2025.

Stronger operating cash generation

The company also showed improvement in cash generation from its operations. Cash generated from operations rose to approximately Rs6.38 billion in FY2026 from Rs4.47 billion in FY2025. After finance costs, taxes and other operating cash payments, net cash generated from operating activities stood at approximately Rs3.60 billion, compared with Rs788.36 million a year earlier.

Din Textile Mills generated Rs664.46 million from the sale of property, plant and equipment during the year, while spending approximately Rs766.63 million on property, plant and equipment. Net cash used in investing activities was around Rs228.44 million.

Financial position

The company’s total assets increased slightly to approximately Rs34.59 billion as of June 30, 2026, compared with Rs34.50 billion a year earlier. Property, plant and equipment increased to Rs17.65 billion from Rs15.56 billion.

On the liabilities side, short-term borrowings declined to approximately Rs11.00 billion, compared with Rs13.91 billion at the end of FY2025. Long-term financing also declined to approximately Rs5.77 billion from Rs6.72 billion.

Equity strengthened

The company’s total equity and reserves rose to approximately Rs10.78 billion by June 30, 2026, compared with Rs7.05 billion a year earlier. The increase included a significant rise in the revaluation surplus on property, plant and equipment.

The statement of changes in equity on page 6 shows that the company recorded a Rs3.63 billion increase in revaluation surplus during FY2026. Total comprehensive income for the year reached approximately Rs110.56 million.

No cash dividend recommended

Despite returning to profitability, the board did not recommend a cash dividend for FY2026. The company also stated that no bonus shares or right shares were recommended, and no other entitlement or corporate action was proposed by the board.

Overall, Din Textile Mills’ FY2026 results show a move from a substantial loss in the previous year to a modest profit, supported by stronger operating profitability, lower finance costs and improved operating cash generation. The company’s financial position also reflected lower borrowings and higher equity at the end of the reporting period.